Financial Times

Top Singapore developers eye Colombo
A cabinet sub-committee headed by Foreign Minister Lakshman Kadirgamar and including Finance Minister Sarath Amunugama and Commerce Minister Jeyaraj Fernandopulle is studying the Prima subsidy issue in a bid to resolve the matter.

According to Ajit Jayaratne, Sri Lanka's High Commissioner in Singapore, the committee was appointed by President Chandrika Kumaratunga sequel to concern raised by Singapore Premier Goh Chok Tong during a visit to Colombo in June and other government authorities on this issue. "The Singapore Foreign Ministry has taken up this issue with me on a couple of occasions and I hope it would be resolved soon," he said during a visit to Colombo last week. Goh had raised the issue during a meeting with President Kumaratunga.

Prima officials in Colombo earlier this year threatened to sell wheat flour at market rates because a government subsidy had been delayed. A to-and-fro debate followed with Fernandopulle in turn threatening to import wheat flour from other sources.

Jayaratne accompanied a group of three top investors from Singapore who met the president earlier last week. The Jurong Corporation, owned by the Singapore government, wants to set up a special foreign investment zone and the President responded positively to the plan, arranging for its representatives to visit some sites outside Colombo. Jayaratne said the Singapore group is looking at setting up an foreign enclave for Singaporean investors as well as investors seeking to benefit from the Indo-Lanka FTA.

Keppel, another big property developer owned by the government, spelled out plans to set up a mixed development complex with shops, offices, restaurants and apartments and are looking for a large block of land of around 10 acres. The third potential investor is the owner of the massive and popular Mustafa shopping complex in Singapore. Mustaq Ahmed of Mustafa and Sons Ltd is looking at setting up a similar complex in or around Colombo aimed at attracting Indian shoppers. The three potential investors have investments outside Singapore including China, India, Malaysia and Indonesia. The Mustafa group is also considering London for a shopping complex.

Jayaratne said the Singapore government was encouraging its business entrepreneurs to venture out into the world, invest and bring back the profits. "Singapore is becoming expensive so the government is encouraging its nationals to go out."

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