The government, Northern Provincial Council and specially the Board of Investment (BOI) in Jaffna has virtually done nothing to promote foreign direct investments to the North, accused President of Chamber of Commerce and Industries of Yarlpanam, K. Vignesh.
Speaking to Daily News Business after the opening ceremony of inauguration of 8th Jaffna International Trade Exhibition, (JITF) he said that no major FDI had come in the last two years. “The only major investment was a steel factory that was initiated through the mediation of the Consul General of India in Jaffna Shri A Natarajan.
| Provincial GDP of North is the smallest among all provincial GDPs. In 2015 the Northern Province GDP was US $ 2.6 billion only. It is a mere 3.5% of total GDP |
“This time around he has brought in the largest Indian business chamber, ASSOCHAM and this will once again lead to additional investments,” Vignesh said.
The Provincial Council and the BOI are not doing enough to market the business potential in the region to Tamil Diaspora which are very ‘rich’ and are looking for opportunities, he said.
Vignesh also accused Sri Lanka Tourism for not arranging any HR related seminars during the three exhibitions as there is an acute HR issue in the industry.
The provincial GDP of the Northern Province is the smallest among all provincial GDPs in Sri Lanka. In 2015 the Northern Province GDP was US $ 2.6 billion only. It is a mere 3.5% of Sri Lanka’s total GDP. The biggest GDP province, the Western Province showed a total of US $ 31 billion.
Meanwhile Vinay R. Sharma, Chairman, Exhibition Council Chamber of Commerce and Industry of India (ASSOCHAM) said that Indian entrepreneurs are keen to set up joint ventures and revive sick industries in the North.
Speaking to Daily News Business he said that the main draw in the North is that the area offers plenty of virgin land and unprecedented business opportunities.
“We are keen to re export back to India as there is lot of provision for this via the Indo Sri Lanka FTA. This is the first time ASSOCHAM is entering Sri Lanka in this way and we are here to partner with Sri Lankan businesses in joint ventures, partnerships and even new business openings in many sectors including automotive and textiles,” Sharma added.
“We also find that the South of Sri Lanka is now saturated for Indian businesses with less opportunities but Jaffna, is still a virgin market for us-offering large and untapped potentials to our member base, which exceeds 475,000 firms.
“Most importantly, many of the firms in this delegation to Jaffna are looking to partner with Sri Lankan companies that are sick or are in the verge of closure or even have already closed down-at whatever size or level: We are ready to partner or acquire and revive them. We are also ready to commence industrial zones in Sri Lanka, even focused on exports. Such is our level of engagement and we believe that this will strengthen our bilateral trade.”
Minister of Industry and Commerce Rishad Bathiudeen said high profile events such as JITF that showcase Jaffna’s great potential to the world suggested that an investment forum should be held during the event next year.
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