Several leading Belgian companies have shown interest in investing in joint ventures with Sri Lanka as there is a vast potential in the island with rapid improvement in infrastructure facilities countrywide especially in Colombo and Hambantota, Belgian oficials said.
Trade between Sri Lanka and the Brussels-Capital Region is marginal and there is yet unrealised potential in this regard, said Celine Fremault, the Minister of Economy, Employment, Scientific Research, Trade and Foreign Trade of Brussels-Capital Region at a briefing arranged specially for the Business Times in Colombo on Saturday, November 30.

A 23-member trade and investment mission visited Sri Lanka last week, the first from Brussels. “I have brought several top companies, all of which are looking to partner with Sri Lanka. Infrastructure and many niche companies, their sectors of operation are relevant to Sri Lanka’s new constructions. Some of them are already familiar with Sri Lanka as well,” she added.

She noted that bilateral trade between the two countries was around US $ 826million and it should be further enhanced.

Belgium is highly optimistic about investing in Sri Lanka but the minimum investment threshold imposed by the Board of Investment (BOI) limits the number of Belgian companies that can start operations in the country, Consul of Belgium in Sri Lanka, Pierre Pringiers told the Business Times.

Celine Fremault

He said that he has made a request to the BOI to bring down the minimum investment threshold to $100,000-$150,000 from $500,000 and the Sri Lankan authorities are considering it in a favourable manner.

The Small and Medium Enterprises sector in Belgium contributing 80 per cent to the country’s economy could be attracted to Sri Lanka by reducing the threshold.

These small and medium companies with high expertise in producing quality products are not interested in tax concessions or tax holidays, what they need is a favourable business environment to penetrate South Asian markets, Mr. Pringiers said. Belgian companies are seeking to manufacture and assemble very specific products for export market in joint ventures with Sri Lankan businessmen

He revealed that he has personally intervened in launching solid tyre making in Sri Lanka when they started Bergougnan Lanka with Associated Motorways AMW in 1980 and thereafter in 1984 Loadstar, with Jinasena and Co. “Sri Lanka has now become the number one solid industrial tyre supplier in the world. Today 20 companies are doing this business since 1980. The country has great potential in boat and yacht building,” he opined.

Katthlijn Frulthof, Trade and investment Attache, Consulate General of Belgium, based in Chennai, said that she is facilitating prospective Belgian businessmen and investors who are willing to enter Sri Lanka.

She added that many importers, investors and trade promotional institutions in Belgium have shown a great enthusiasm in developing business relations with island nation. Paul Callebaut, BESIX Sri Lanka Resident Manager, who accompanied the delegation, disclosed that his company is a large Belgian group in building construction, infrastructure, environmental and industrial projects including power plants, geothermal, hotels and high-rise buildings including the Burj Khalifa in Dubai, the tallest building in the world.“We are now looking forward to enter the high rise building construction field in Colombo,” he said adding that BESIX has started a water treatment project in the Moneragala district at a value of Euro 20 million.

CFE another Belgian company is implementing a water treatment project at a value of Euro 24 million in Balangoda and Kolonna, Technical Manager of CFE International Xavier Behets revealed.

It will provide safe drinking water for the Kolonna town and its suburbs and the Balangoda project will provide safe drinking water to an estimated 62,500 people in the Balangoda Township and the suburban area in the Samanalawewa hydraulic plant project surroundings.

The Belgium Soft Loan Assistance was available for Euro 10.5 million. The balance funding had been an obstacle. The People’s Bank provided a specially structured loan to bridge the funding gap, official sources said.

Sitomeca, a corrugated steel company, is supplying steel moulds to produce Rhino roofing sheets in the island for more than 30 years during their tie up with St. Anthony’s Group and they are exploring the possibility in investing in the luxury hotel sector and other industrial fields as they are already active in Sri Lanka, Olivier Blontrock, Chief Operating Officer disclosed.

Sales Director of Schréder Ripu Daman Sharma expressed keenness in venturing into urban and street lighting in the island according priority to non renewable energy sources.

The visiting Belgian trade mission had fruitful business to business talks with a group of selected Sri Lankan businessmen during their 3-day stay in the island.

A seminar titled ‘Doing Business in Sri Lanka,’ organised by the European Chamber of Commerce of Sri Lanka was held in Colombo this week with the attendance of the trade delegation from Brussels led by Minister Céline Fremault.