Sri Lankan investors transform Bangladesh economic landscape
With Sri Lanka becoming the first country to recognise Bangladesh’s potential as an investment destination, Sri Lankan investors have transformed the economic and social landscape of Bangladesh since 1972, a top official affirmed.
Bangladesh Investment Development Authority (BIDA) Chairman, Kazi M Aminul Islam made this statement at a forum organised by NDB Investment Bank titled ‘Ayubowan Bangladesh’ at the Shangri-La Hotel in Colombo on Thursday.
Mr. Islam said, “How does it feel like to be in business in Bangladesh? It’s the investors’ experience that matters. There are certain areas in Bangladesh that needs improvement. Bangladesh started as a poor country, humble beginnings with just US$ 129 per capita income after obtaining independence. Today we have crossed $1,700 per capita income and reduced poverty. The country has moved from a low income to middle income status. Throughout this whole journey the only country that has been with us is Sri Lanka,” he reiterated.
He added that Sri Lanka recognized Bangladesh back in 1972 and has totally changed the economic and social landscape. Sri Lankans moved to Bangladesh well ahead of other nations in the region.
“The world tomorrow will not be the world that we have experienced. The next 25 years will transform the whole world politically, economically and socially.
There is possibility of creating a high value digitally enabled Bangladesh,” noted Mr. Islam.
High Commissioner of Bangladesh to Sri Lanka, Riaz Hamidullah emphasized that world nations must look at the bigger picture, the regional and global supply chains. “We see a potential of co-operation between Sri Lanka and Bangladesh. The free trade agreement between the two countries, which is yet to be signed, will create a huge impact in the Asian region,” he stressed.
Through experience and success of investing in Bangladesh, Laugfs Holdings Chairman, W.K.H Wegapitiya pointed out, “Don’t look at Bangladesh if you are myopic. Look at it as an investment destination for opportunities in various potential sectors of growth.” The world economy is shifting from West to East and by 2041 more than 51 per cent of the world population will live in Asia, he added.
Being the market leader in the energy sector in Bangladesh, a country with 160 million people, Mr. Wegapitiya stated, energy is an essential commodity. “We have an integrated business plan to link Bangladesh with Hambantota and West Asia. It requires significant imports of Liquid Natural Gas that could be shipped from the Arabian Gulf to Hambantota and then to Bangladesh. Companies would also invest in its own fleet of ships and (we) have already captured nine per cent of the Bangladesh market reaching 33 million households in a few years,” he noted.
He also mentioned there are industries that have challenges, but Bangladesh’s bureaucracy is very supportive. Sri Lanka has competent bureaucrats but not welcoming. “Sri Lanka can be used as a spring board for energy, logistics, power and maritime sectors to build an economic bridge between the two countries.”
The LTL Group in Sri Lanka has invested more than $200 million in Bangladesh in the power, energy and logistics sector, Offshore Operations General Manager, Gamini Sarath stated. “We have signed up for a third 115 MW power plant with the commissioning expected in 2019. The company has also submitted an application to list in the Dhaka Stock Exchange,” he noted.