Several groups of Israeli investors have visited Sri Lanka since November 2009 which experts on Sri Lanka – Israeli relations saying it is the first sign of increased business activities and interest to come.
The Israeli investors had expressed interest in hydro-power generation, tourism, information technology and in developing the fisheries and agriculture sector. An expert said that with the end of the conflict, there is huge potential in the Northern and Eastern provinces. He added that investments may be in the US$50 million to US$60 million range.
Launch of the tourism company in Israel in the presence of the Sri Lankan Ambassador Donald Perera |
A new tourism enterprise ‘Dream Islands’ was launched in Israel this week, specializing in tourism to Sri Lanka and the Maldives in a joint venture with Delmege Forsyth & Company. The company is owned by Kal Nofesh, a leading tour operator in Israel for the past 50 years. According to a company press release, Nesh Invest which is a group of investors dealing with new investments in Sri Lanka will be headed by Elchanan Shaked and Israel Tieblum.
The company stated that its primary goal is to bring Sri Lanka to the attention of Israeli tourists and to make it one of the top destinations in the Israeli traveler’s agency. The company has joined forces with Delair Travels (Pvt) Ltd, a leading tour operator in Sri Lanka which is a fully owned subsidiary of Delmege.
Prior to the end of the civil conflict in Sri Lanka, there were some Israeli interests in diamonds as Israel has the second largest diamond exchange in the world. Two local companies were polishing and cutting diamonds which was the main source of bilateral trade, apart from defense related trade. Diamonds, which come from Israel are polished and cut in Sri Lanka and sent back to Israel. In 2009, this brought in around US$42 million for Sri Lanka. A high powered Israeli delegation has also been invited by the Ceylon Chamber of Commerce (CCC) to attend the Sri Lanka Economic Summit scheduled for July 2010, a CCC official told the Business Times.
Furthermore, the Sri Lanka Tourism Promotion Bureau (SLTPB) held a road show in Israel this week, part of a larger tour to promote tourism in the Middle East, according to SLTPB Managing Director Dileep Mudadeniya. Israel is the second largest tourist market for Sri Lanka in the Middle East after Saudi Arabia. Mr. Mudadeniya said the 2010 road show in which 12 companies are participating will also be held in Oman and Jordan in addition to Israel. The SLTPB sees a strong potential for growth in Israel’s adventure and surfing markets.
According to the March 2010 tourism statistics, tourist arrivals from the Middle East increased by 138% to 2,928 arrivals compared to 1,230 in March 2009. Tourist arrivals from the region also increased by 106.1% year on year in January to March 2010 with 7,324 arrivals. |
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