Thailand to set up industrial zone in Sri Lanka
Measures will be taken to triple trade between Thailand and Sri Lanka up to US$ 2.5 billion by 2020 which is going to be very challenging, said Ambassador of Thailand to Sri Lanka Madame Chulamanee Chartsuwan at a discussion held at the National Chamber of Commerce Colombo this week on “Bilateral Trade Between both Nations.”
She said Thailand’s investment in Sri Lanka had jumped from $17 million in 2015 to $700 million in 2016 following a big investment to set up a cement company in Sri Lanka.
“We are also negotiating with the BOI in Sri Lanka to set up an industrial zone in Kalutara which will be the first industrial zone in Sri Lanka after many years for the manufacture of high tech electronic goods and computer chips. We are also very excited about the big investment coming from Thailand.”
She also said that since Sri Lanka is small market with a population of 20 million people, big time Thailand businesses are somewhat wary of investing in a small market. “However this was not a handicap when countries such as Singapore and Hong Kong are able to attract investment owing to their liberalised trade policies.”
Meanwhile many high tech companies from Thailand are expected to arrive in Sri Lanka and the infrastructure to house such companies is expected to be built by 2018 with assistance rendered by the Sri Lankan government. She said the historic and cultural ties that exist between Thailand and Sri Lanka can augment further investment in Sri Lanka.
Thailand’s economy has been expanding by 3.3 per cent and is expected to increase upto 3.8 per cent this year following a growing number of applications for investments from other countries.
Tourism in Thailand has been growing at 10 per cent every year and 35 million tourists are expected this year. Thailand is also moving from traditional farming of SME’s to smart farming start-ups with value addition. New legislation is to be introduced to facilitate doing business in Thailand faster, cheaper and more efficiently.
Meanwhile a strategic economic partnership between both Sri Lanka and Thailand is been discussed by both governments. Apart from this MoU, a Free Trade Agreement is also being discussed between both countries. Thailand is also planning to host a Business Trade Fair next year in Thailand and a business delagation from Thailand is expected in Sri Lanka to promote SME’s and develop contacts with Sri Lankan small businesses.