Hemas to invest LKR 2.9 billion in a pharmaceutical manufacturing plant

 

Morison Plc, a subsidiary of Hemas Holdings Plc, based in Colombo, has opened an $18.5 million pharmaceutical plant that can manufacture 5 billion pills a year. The company estimates can supply 20 percent of the country's consumption, officials said. Morison Plc, which was acquired by Hemas Holdings of Sri Lanka in 2013, claims to be Sri Lanka's largest producer of solid oral pharmaceuticals.

In cooperation with the Sri Lanka Institute of Nano Technology, a science park run as a public-private partnership, the 18.5 million dollar plant building. The plant locates within the Sri Lankan Nano Technology Park in Pitipana, Homagama, on a five-acre plot. It can produce 5 billion pills, 240 million capsules, and 10 million bottles per year out of 100 milliliters.  

He said they are now developing and gaining international accreditation and approval for EU and GMP compliant manufacturing and certification that will be complete at the beginning of next year. We will also look at signing up to export drugs to India and the region with Indian companies from Parma. Diabetic and cardiovascular drugs are the major export sectors in India. We will also look at exports to the EU from Parma from 2021 onwards.

"We are sure that the ROI would be about six years for this project." The new plant will generate around 5 billion tablets per year for both local and international consumption. Asked if they were going to venture into the manufacturing of medical equipment, he replied in the negative. We have held the position of the leading pharmaceutical importer and distributor in Sri Lanka for over six decades.

Currently, We save 22% of the market share, and our annual turnover has exceeded Rs. 11 billion. We have been a Parma exporter since 2021 and have taken valuable foreign exchange to Sri Lanka. Hemas Holdings Plc has acquired a 71.5 percent voting stake in J. PLC from L. Morison Son & Jones (Ceylon).

OSL Take: Sri Lanka's health sector is engaged in constant upgrading, and the Sri Lankan government is also engaged in introducing new technologies in par with the latest international trends in the country. Therefore, there are ongoing business/investment opportunities in Sri Lanka's health sector. Foreign health companies could explore options for business in Sri Lanka.

Given the many projects that range from the construction of the state hospital network to the manufacture of pharmaceuticals and medical supplies, Sri Lanka's health sector is a hotbed for investment. Interested foreign investors could explore investment opportunities in Sri Lanka's health sector. In the South Asian zone, Sri Lanka enjoys active trade and bilateral relations with countries.

Sri Lanka also enjoys free trade accords with India and Pakistan, while other South Asian countries enjoy preferential treatment. The geographical location of Sri Lanka in the Indian Ocean, the country's ease of doing business, and the many trade accords and trade compromises enjoyed by the state have made it an attractive business destination in the region of South Asia. To engage with other South Asian countries, foreign companies/investors looking at doing business in the South Asian area might consider setting up a base in Sri Lanka.

VBS/AT/0511/2020/Z_TB3

 

Sri Lanka on the path to finalizing a 9mn passenger airport terminal in 2023

 

Sri Lanka is on the road to finishing a new passenger terminal that will expand capacity at the 2023 main international airport and have a President's office with usual operations dampened by Coronavirus high-tech 'smart terminal' facilities. "President Rajapaksa ordered the authorities to complete the airport's construction work as early as possible by taking advantage of the occasion provided by the interruption of airport operations by working day and night," his office said.

Japan, along with Japan Airport Consultants Inc. (JAC) and Nippon Koei Co., is the main contractor for the project. Ltd. (NK) as advisors. The government will construct a new multi-level terminal building, two new piers, and a connexion path.

Arrivals and departures are divided vertically in the multi-level terminal building (Terminal 2) with a floor area of 180,000 m2. The project also involves modern parking apron taxiways, elevated access roads, multi-story parking facilities, and public utilities. The airport will consist of a new multi-level terminal structure, two new piers, and a connecting course will construct under the scheme.

The unique tier consists of making a new multi-level terminal building (Terminal 2) with an estimated floor area of 180,000 m2. Hence vertically separating arrivals and departures, Pier 2 and Pier 3 with a connecting concourse, new parking aprons and taxiways, elevated access roads, multi-story parking, and public services. Once finalized, the new terminal will be able to handle a further 9 million passengers per year and will allow BIA to manage an aggregate of 15 million passengers per year.

Speaking at the meeting, the Secretary of the Ministry of Tourism and Aviation, S Hettiarachchi, stressed the importance of completing this project in 3 years to grow the aviation industry in Sri Lanka. Besides, he described the main aspects of the building project and the government's strategy.

Sri Lanka's airport and aviation industry are currently undergoing a facelift with the government of Sri Lanka, giving prominence to the development and upliftment of the country's airports, including the main international airport in the island. Sri Lanka's national carrier is also undergoing a restructuring program. The airline is also on the lookout for a foreign investor to form a joint venture operation. Sri Lanka's ecological positioning in the Indian Ocean region, the ease of doing business environment, and the strong trade ties with foreign nations have made Sri Lanka the ideal business destination in the South Asian region. All this indicates the growing business/investment potential in Sri Lanka's airport and aviation industry.

OSL Take: The government of Sri Lanka focused on making the country a maritime hub in the Indian Ocean region. The latest accomplishments of the Colombo and Hambantota Ports indicates that the government is closing in on achieving the target. The port already has an industrial zone on the premises, which provides an ideal business space for companies engaged in exports and logistics.

All these advancements would help Sri Lanka engage in trade activities with other countries. On the other hand, Sri Lanka could entice more cruise liners to the state by developing other harbors worldwide and developing the required infrastructure facilities. Foreign businesses/investors should explore the increasing investment opportunities in Sri Lanka's ports and shipping sector.

VBS/AT/0511/2020/Z_TB2

 

 

Consulate in Egypt promotes Sri Lankan shipping opportunities to Suez Canal Authority

On 23 September, on the initiative of the Ambassador of Sri Lanka to Egypt, Damayanthie Rajapakse, First Administrator (Industrial) Shiwanthi Abeyrathne and Trade Associate of the Embassy, Ahmed Selim, visited the Suez Canal Authority in Ismailia, Egypt.

This trip held to address the technical capabilities of Sri Lanka in the field of shipbuilding and shipbuilding and dry-dock facilities, its potential for nautical tourism, and the exploration of avenue tourism. Embassy officials met with the Suez Canal Authority team led by Salah Eldin Gouda Abomosallam, the Director of the Procurement Department. Shiwanthi Abeyrathne highlighted the rapidly increasing technological advances made by Sri Lanka in this sector during the discussions. He also stressed on its strategic location, highly trained workforce, low labor costs, and the handiness of one of the finest natural ports in the Asian area paved the way for the success achieved by Sri Lanka in the boat and shipbuilding sector.

To demonstrate the shipbuilding excellence achieved by Sri Lanka, the KDDI Cable Laying Vessel designed by Colombo Dockyard PLC emphasized. Following the presentation made by the Mission officials, the Suez Canal Authority team expressed their keen interest in the purchase from Sri Lanka of tugboats, pilot boats, and dredgers.

Accordingly, the Mission officials agreed to pursue the matter with the Sri Lankan stakeholders, exploring all possible avenues for establishing relations between the Suez Canal Authority and the Sri Lankan counterparts for the supply of the vessels manufactured in Sri Lanka needed.

The ancient backdrop of Sri Lanka supporting Egypt and the Suez crisis at the UN General Assembly in 1956. Subsequently, the election of Sri Lanka as a member of the Suez Advisory Board was discussed during the deliberations, bringing to light the critical milestones in history that have improved diplomatic ties between Sri Lanka and Egypt.

OSL Take: The government of Sri Lanka focused on making the country a maritime hub in the Indian Ocean region. Colombo and Hambantota Ports has seen progress indicating that the government's objectives may by fulfilled soon. The port already has an industrial zone on the premises, which provides an ideal business space for companies engaged in exports and logistics.

All these developments would help Sri Lanka engage in trade activities with other countries. On the other hand, Sri Lanka could attract more cruise liners to the state by developing other harbors worldwide and developing the required infrastructure facilities. Foreign businesses/investors should explore the increasing investment opportunities in Sri Lanka's ports and shipping sector.

 VBS/AT/0511/2020/Z_TB1

Sri Lanka's UTECH Technologies explores overseas markets with the all-new 'UTECH BLACKBOX.'

 

UTECH Technologies Ltd., the leading provider of Industrial IoT (Internet of Things) and Industrial Automation Solutions in Sri Lanka, has entered overseas markets with its flagship 'UTECH BLACKBOX' telematic product. The UTECH BLACKBOX is a universal telematics portal used in a wide variety of industrial installations, such as manufacturing equipment, power generators, building equipment, air compressors, UPS systems, chillers.

The UTECH BLACKBOX's unique feature is that it can fit seamlessly into machinery through a wide variety of link protocols. Computer monitoring and control is possible from anywhere in the world via the UTECH Remote Web Portal. Real-time dashboards, data logging and graphing, routine service scheduling, GPS, geofencing, and SMS / email alerts are allowed by the web portal.

UTECH Managing Director Riyad Ismail commented, "After comprehensive field trials in harsh environments in those countries, we are proud to obtain export orders to India and the Americas." We see this as the beginning of the involvement of Sri Lanka in the global marketplace for an end-to-end solution for IIoT (Industrial IoT). Hence we aim to grow into other international markets while retaining our core values of continuous innovation, cutting-edge technology, and superior customer service.

An international award at the NBQSA honors that year awarded to UTECH BLACKBOX in 2019. UTECH also has a strategic partnership with the domestic mobile service provider of Sri Lanka, Mobitel, to deploy UTECH solutions across the vast corporate customer base of Mobitel. Besides, the product range of UTECH includes cold-chain monitoring systems, smart agriculture, tracking of vehicles, access control systems, and other tailored solutions for factory automation.

OSL Take: In some key areas, Sri Lanka is emerging as a destination of choice as a regional IT Business Process Outsourcing (BPO). AT Kearney ranked Sri Lanka eleventh among the top 50 outsourcing destinations in the world in 2017, moving up three slots from 2016. Sri Lanka's computer industry manufactures world-class goods and has dramatically expanded over the past decade. In the information services industry, telecommunications, banking, finance, and insurance (BFSI) and software testing included.

The ICT and digital infrastructure sectors of Sri Lanka are on a growth path, generating many opportunities for business/investment in the two industries. The government of Sri Lanka has also prioritized the growth of digital infrastructure and the expansion of the ICT education sector, providing various incentives to increase connectivity while removing intrusion and improving data services for both business and consumer users. Such technologies can help maximize business performance, which is an attractive asset for investors in infrastructure. OSL also sees investors leasing spectrum capital for the further growth of the telco sector as an opportunity.

VBS/AT/23102020/Z_TB6

Sri Lanka Tourism partners with Australia for a 5-year roadmap

 

Yesterday, the Sri Lanka Tourism Development Authority (SLTDA) announced its collaboration with the Australian Market Development Facility (MDF) to develop a research roadmap that would pave the way for the positioning of Sri Lanka as the leading tourism destination in Asia. Since the industry needs accurate knowledge to make evidence-based decisions, the roadmap will allow for a clearer understanding of tourism behavior, which will, in turn, help the public and private sectors prepare strategically.

This strategy is the first time a systematic review has conduct to assess the efficacy and use of the SLTDA's data collection efforts. In position with the ambitions set out in the Sri Lanka Tourism Strategic Plan, the SLTDA established the need for better quality data and research to enhance the strategic direction of Sri Lanka's tourism sector, said Kimarli Fernando, Chairman of Sri Lanka Tourism. He spoke of the SLTDA's objective of finding a diverse range of visitors, tourism facilities, and services to make Sri Lanka a top global tourism destination.

Mrs. Fernando also said the roadmap would help improve the research capabilities and practices of the SLTDA to identify opportunities for new investments, promotions, and policies. To analyze the existing research systems and procedures, the SLTDA and MDF will work closely. The alliance will also carry out a different review.

"Based on this, a five-year roadmap will create, focusing on improving the collection, analysis, and use of tourism data," Fernando said. She added that a series of measures to take over the next five years are listed in the roadmap, putting Sri Lanka Tourism's potential to the levels adopted globally by leading tourism destinations. 

The initiative expects to support the national tourism organization (NTO) and industry stakeholders effectively respond to the current global travel and tourism industry standard.

The involvement of Australia in this study is part of its broader support for the Sri Lankan tourism industry through the MDF, supported by the Government of Australia and implemented by Palladium, in collaboration with Swiss Touch. Australia has offered support to the SLTDA in the past to improve its research potential by facilitating a study tour with Tourism Research Australia (TRA) for the SLTDA staff.

OSL Take: Sri Lanka's tourism trade is on an uninterrupted growth path and is one of the fast-growing economic sectors in the country. Traveler entrances to the country are on a constant growth path as well, which in turn has resulted in the development of business/investment opportunities in Sri Lanka's tourism industry. Sri Lanka continues to make it to the top as a must-visit destination in lists of travel destinations compiled by renowned travel publications. Foreign businesses/investors could, therefore, explore business opportunities in Sri Lanka's tourism industry.

VBS/AT/23102020/Z_TB5

Sri Lanka Tourism Board to develop a 5-year strategic plan to transform tourism research

 

Sri Lanka Tourist Development Authority (SLTDA) and the Market Development Facility of Australia (MDF) have joined forces to establish a research roadmap to encourage the role of Sri Lanka as the leading tourism destination in Asia. The strategic plan will surface the way for a deeper understanding of Sri Lankan visitors and help the public sectors make evidence-based tourism decisions and investments.

This initiative is the earliest time that Sri Lanka has conducted a systematic review to assess the efficacy and use of SLTDA's data collection efforts. In position with the goals set out in Sri Lanka's Tourism Strategic Plan, SLTDA established the need for better value data and research to enhance the strategic direction of Sri Lanka's tourism sector.

"The objective of SLTDA is to recognize a diverse range of visitors, tourism services, and products that would make Sri Lanka a top global tourism destination," said Kimarli Fernando, Chairman of Sri Lanka Tourism. "As the primary agency for gathering, analyzing, and publishing tourism-related data, we plan to use this roadmap to update SLTDA's research capabilities and practices to identify new investment, promotion, and policy opportunities," she added.

A global consultancy will work closely with SLTDA to review existing research processes and practices and perform a gap analysis through funding given by MDF, the flagship private sector development program for the Australian Government. They have decided on a five-year plan focusing on enhancing the collection, research, and use of tourism data will establish.

The roadmap outlines a series of steps to be taken over the next five years to put Sri Lanka Tourism's potential to the levels followed globally by leading tourism destinations. Australia's participation in this study is part of its more comprehensive support to the Sri Lankan tourism industry through MDF, which, in collaboration with Swisscontact, is supported by the Australian Government and implemented by Palladium.

Australia has extended support to SLTDA in the past to expand its research potential by facilitating a study tour with Tourism Research Australia (TRA) for SLTDA employees. Implementing the five-year research roadmap will strategically support Sri Lanka Tourism and the brotherhood of the tourism industry with data-driven, informed decision-making that will help them with target marketing while allowing higher ROI for resources and investments. It also expects that the initiative will enable the National Tourism Organization (NTO) and industry stakeholders to respond effectively to the current global travel and tourism industry standards.

OSL Take: Sri Lanka's tourism industry is on a continuous growth path with tourist arrivals to the country also on the increase. Sri Lanka continues to list as a must-visit destination by globally renowned travel publications. All this has stemmed from a rise in foreign investments in the country's tourism industry. The continuous growth in Sri Lanka's tourism industry has further expanded the business potential in the country's leisure and hospitality sectors.

Once the plan is in place, the corporate/investment opportunities in Sri Lanka's tourism industry would further expand. Therefore Sri Lanka's tourism industry would become a hotspot for business opportunities. Sri Lanka continues to list as a must-visit destination by globally renowned travel publications.

VBS/AT/23102020/Z_TB5

Sri Lanka explores investment opportunities with EIB on green projects

 

The possibilities for collaboration in green projects were discussed by Sri Lanka and the European Investment Bank (EIB) when an envoy from Sri Lanka to the European Union recently met with top EIB officials in Brussels. As a follow-up to the conference between the Foreign Ministers of Sri Lanka and Luxembourg held in Colombo on 31 January 2020, Ambassador Grace Asirwatham of Sri Lanka to Belgium, the European Union, and Luxembourg met Dr. Werner Hoyer, President of the European Investment Bank (EIB), on 24 September 2020.

The conference also joined by a team of senior EIB officials consisting of Vice President Christian Kettel Thomsen, Director General / Deputy Head of Operations Luca Lazzaroli, Head of the Asia & Pacific Division, Public Sector Operations, Edvardas Bumsteinas Global Partners Group, and Donal Cannon, Head of the EIB Regional Representation for South Asia based in New Delhi.

The discussion focused on the ongoing activities of the EIB in Sri Lanka and the possibilities for Sri Lanka and the EIB to establish cooperation in the field of Green Projects and impressed by the emphasis on promoting green projects in Sri Lanka under the National Policy System 'Views of prosperity and splendor' with medium to long-term objectives, in particular green public transport, the establishment of eco-industrial zones for the recycling of industrial waste, the construction of green buildings under the green and smart cities, etc.

Concerning the proposals for the growth of the renewable energy sector, particularly for wind and solar energy projects, the President of the EIB confirmed that the areas proposed for financial cooperation are well within reach of the EIB and agreed to assist Sri Lanka in achieving the proposed renewable energy targets.

The President of the EIB welcomed Sri Lanka's contribution to environmental conservation, climate change mitigation, and cooperation with the UNFCC, including exchanging information on nationally defined goals, GHG emission reduction goals by 2030, and progress towards achieving SDGs. Dr. Hoyer advised Sri Lanka to continue the technical discussion with the EIB Vice-President and Senior Officials on the necessary project proposals to develop the financial cooperation envisaged for investments in green projects.

OSL Take: The government of Sri Lanka's focus is on making the country a maritime hub in the Indian Ocean region. The port already has an industrial zone on the premises, which provides an ideal business space for companies engaged in exports and logistics. The recent achievements of the ports of Colombo and Hambantota suggest that the country is moving closer to achieving this goal. All these innovations will help Sri Lanka engage with other countries in trade activities. On the other hand, by developing other harbors around the nation and developing the necessary infrastructure facilities, Sri Lanka could attract more cruise liners to the state. Foreign businesses/investors should explore the increasing investment opportunities in Sri Lanka's ports and shipping sector.

 VBS/AT/23102020/Z_TB3

Sri Lanka anticipates US$500mn influx to rupee bonds, US$700mn China loan in 2020

 

Sri Lanka expects a $700 million loan from China's purchases of Chin and rupee bonds and a Samurai and Panda bond to raise dollar inflows in 2020, Nivard Cabraal, Capital Markets State Minister for Finance, said. After forex risk cover provides via a dollar-rupee swap, foreign investors expected to invest about US$ 500 million in rupee bonds in 2020, he said. Inquiries from investors are already arriving, Minister Cabraal said.

In the last two weeks, before the swap announced, there was a net purchasing of rupee bonds. The central bank will also begin work to collect $500 million from bonds denominated in Panda (Yuan) and Samurai (Yuan). Sri Lanka would not default on foreign obligations, and on October 02, he said, a billion US dollar bonds repaid with money credited to investors.

He said the downgrade by Moody's to Caa1 (CCC+ equivalent) of Sri Lanka's sovereign rating sufficiently justified, and the economy was recovering. Cabraal said it was necessary to keep the rupee steady and that the central bank had bought dollars on the interbank market in the last three months.

The central bank purchased 30 million dollars on September 29 to avoid the rupee from appreciating. While the rating agency has downgraded, he said, the country's economic agents are sending money and continuing operations.

As domestic credit slows and inflows not completely expended, Sri Lanka's rupee, loosely attached to the US dollar, appreciates. Sri Lanka reversed the worst import controls since the fall of the Bretton Woods regime in 1971 in April 2020. The import controls introduce to allow capital to repay debt obligations, Cabraal said. Sri Lanka had never lost and would have held the record that he had claimed.

OSL Take: The latest report launched by the Central Bank of Sri Lanka highlights a crucial area of focus in the next five years. The announcement that it would create investments worth Rs. Thirty billion within the next five years is a positive sign for foreign businesses/investors exploring business/investment opportunities in Sri Lanka. They could start exploring investment opportunities in the biodiversity restoration and management sector and even present to the government of Sri Lanka projects that could implement under the program.

Sri Lanka's economic policies and the continuously improving ease of doing business environment have helped promote the country as an ideal business/investment destination in the South Asian region. Therefore, the proposed issuance of the bond would offer a perfect investment opportunity for the discerning investor.

The call by the Central Bank of Sri Lanka for private investment banks has opened up an investment opportunity for foreign businesses/investors. Sri Lanka's economic indicators show the country is heading in the right development path, and the government's development agenda would also help in this aspect. Therefore, foreign businesses/investors could invest in Sri Lanka without having any doubts. The move by the Colombo Stock Exchange and the South Pacific Stock Exchange to reach a deal to collaborate on market development would serve as a confidence booster for foreign businesses/investors to invest in Sri Lankan stocks.

 VBS/AT/23102020/Z_TB2

Softlogic Capital to obtain majority shares of Abans Finance for Rs.995mn

 

Yesterday, Softlogic Capital PLC, the diversified Softlogic Holdings PLC's financial sector holding firm, said it had agreed to buy Abans Finance PLC's majority stake in a transaction of Rs.995 million from Abans PLC. Abans PLC owns 33 million shares in Abans Finance PLC or 49.67 percent.

In terms of the 1995 Takeovers and Mergers Code as amended in 2003, Softlogic Capital said it would pay Rs.30.10 per share and declare a mandatory offer to Abans Finance's minority shareholders. As of the end of June 2020, Abans Finance had an asset base of Rs.8.5 billion and a deposit base of a little over Rs.5 billion. The net asset per share of the business was Rs.24.08. Yesterday, Abans Finance shares closed at Rs.29, up Rs.8.50, or 41.46 percent.

In a media release, Abans PLC said it is divesting its interest in Abans Finance with a capital gain from Softlogic Capital. The selling price at which the mandatory bid will declare represents a 47 percent premium to the recently traded price of Rs.20.50.

Meanwhile, shortly after completing the mandatory bid, Softlogic Capital said that Abans Finance would merge with Softlogic Finance PLC. Softlogic Capital has a 72.94 percent shareholding, with the surviving company being Softlogic Finance. Softlogic Capital also said minority shareholders of Abans Finance PLC do not accept the mandatory offer grants 11 Softlogic Finance shares for every six shares held following the amalgamation by Abans Finance PLC.

"As per the most recent issued quarterly financial statement as of June 30, 2020, this ratio determined based on the corresponding net asset values of the two firms," Softlogic Capital said in a stock market filing. The accord is subject to governing approval by the Sri Lankan Central Bank, the Commission on Securities and Exchanges, and the Colombo Stock Exchange.

OSL Take: The latest report launched by the Central Bank of Sri Lanka highlights a crucial area of focus in the next five years. The announcement that it would create investments worth Rs. Thirty billion within the next five years is a positive sign for foreign businesses/investors exploring business/investment opportunities in Sri Lanka. They could start exploring investment opportunities in the biodiversity restoration and management sector and even present to the government of Sri Lanka projects that could implement under the program.

Sri Lanka's economic policies and the continuously improving ease of doing business environment have helped promote the country as an ideal business/investment destination in the South Asian region. Therefore, the proposed issuance of the bond would offer a perfect investment opportunity for the discerning investor.

The call by the Central Bank of Sri Lanka for private investment banks has opened up an investment opportunity for foreign businesses/investors. Sri Lanka's economic indicators show the country is heading in the right development path, and the government's development agenda would also help in this aspect. Therefore, foreign businesses/investors could invest in Sri Lanka without having any doubts. The move by the Colombo Stock Exchange and the South Pacific Stock Exchange to reach a deal to collaborate on market development would serve as a confidence booster for foreign businesses/investors to invest in Sri Lankan stocks.

 VBS/AT/23102020/Z_TB1

SL's foreign currency debt falls beneath US$ 500mn this year

 

The remaining foreign currency-denominated debt owed by Sri Lanka for repayment over the remainder of the year falls below US$ 500 million, like last week, the Central Bank settled its US$ 1.0 billion sovereign debt due on October 4, including coupon payments due at the time of settlement. 'On October 2, 2020, on behalf of the Government of Sri Lanka, the Central Bank of Sri Lanka effectively finalized the settlement of the maturing US dollar 1 billion Foreign Sovereign Bond (ISB) along with the due coupon payments,' the Central Bank said in a statement released on Friday.

With this settlement, Sri Lanka now has a remaining foreign currency debt of US$ 438.6 million maturing from October 5 to December 31. Hence, alleviating fears about the country's ability to fulfill its foreign currency debt in the face of impaired access to international capital markets to roll over such debt triggered by market unrest caused by a pandemic.

Last week, Moody's Investors Service issued a rare two-tier downgraded from B2 to Caa1 on the Sri Lankan sovereign, revising the outlook to stable from negative, citing Sri Lanka's high risks of debt refinancing, strained fiscal deficit and governance, and institutional vulnerabilities. Many, including the private sector, were shocked by the fact that the rating reduction came on the verge of a billion-dollar bond settlement and, despite the government's repeated assurances of its capability and commitment to connecting debt obligations as they come due.

 This settlement and other recent positive improvements in the Sri Lankan economy have positively responded from the domestic foreign exchange market. The expected inflows to the domestic foreign exchange market, backed by constructive steps taken by the State of Sri Lanka and the Central Bank of Sri Lanka, are expected to reinforce market sentiment further in the period ahead," it added.

The data shows that Sri Lanka has US$ 4.6 billion in foreign currency debt repayments due in 2021. This data includes principal payments of US$ 3.6 billion and interest payments of US$ 996 million. By the end of August, Sri Lanka had US$ 7.4 billion in foreign currency reserves. Still, debt settlements could have dented their position, as, during September, there were US$ 991.2 million in debt repayments and US$ 1.031 million in bond settlements on October 2.

Nevertheless, the narrowing gap in the merchandise trade account due to the rapid recovery of exports and the slowing down of imports, and the $700 million owed by the China Development Bank as the additional tranche of the $1.2 billion syndicated facility could partially offset the full impact of debt repayments on the reserves.

OSL Take: The decrease in foreign debt in Sri Lanka is indicative of the level of confidence in Sri Lanka's economy and investment interest. Therefore foreign investors could confidently explore investment opportunities in Sri Lankan bonds.

Sri Lanka's export portfolio expanded continuously, and now poultry will add to the long list of exports.  Further improving the discussion between the World Bank and the Sri Lankan government would result in a further increase in development assistance to the island nation. This initiative is an encouraging sign for foreign businesses/investors keen on doing business with Sri Lanka since the interest shown by multinational lending agencies would help secure funding for large scale projects.

 VBS/AT/22102020/Z_TB6

Lanka SSL bolsters new partnership with TATA Steel

 

Lanka Special Steel Ltd. (Lanka SSL) has stepped up its long-standing alliance with Global Wire India (GWI) of TATA Steel Ltd., one of the world's largest producers of steel wire, with manufacturing facilities in India and Thailand. For all of its high-quality wire goods, Lanka SSL will be the sole agent and distributor in the region, expanding its existing portfolio further.

Strong Tensile Wire (HTS) used in the concrete strengthening of electric poles and existing pre-stressed pipes, Prestress concrete strand wire used in pre-emphasizing concrete for the construction of various types of structures, spring wire for mattresses and motorcycle body parts, bead wire for tires in automotive products, shutter wire for roller gates, massive GI for gabions and healthy GI for motorcycles now included in the works.

Its steel wires useful in various sectors of the industry, from building, automotive, and power to general manufacturing and retail. It takes pride in having supplied wires around the world for many famous structures. GWI is a subsidiary of Tata Steel, one of the most geographically diversified manufacturers of steel in the world. With this strategic move, Lanka SSL, in comparison to having to pre-order them, will now ship and store its goods.

Customers can now seamlessly access these high-quality premium goods with all possible steps taken by Lanka SSL to ensure its scope and market availability. Anurag Pandey, Head of Marketing and Sales of Global Wire India, said: "We are very pleased to announce the new level of partnership with one of the most respected and reputable companies: LSSL as our sole supplier in Sri Lanka." In the retail and institutional segments that Global Wires India Division now seeks to grow and exploit in foreign markets, Tata Steel has a long-standing history of strong channel presence.

With this strategic partnership with LSSL, our loyalty to our customers lies in providing high-quality goods with distinct top-notch service levels that are further improved. On this appointment, my warmest congratulations to LSSL and best wishes for tremendous success and continued development of our business relationship.

Pravin De Silva, president of Lanka Special Steel, stated: "We are delighted to enhance our fruitful partnership with a global manager in steel wires. As the material is readily available in Sri Lanka, this will be beneficial to our customers in various ways to increase their cost-effectiveness. Over the past 16 years, Lanka SSL has provided its clientele with outstanding customer service and superior products, especially in the booming construction sector in Sri Lanka, making it an industry leader. With repetitive and loyal customers, LSSL and their highly skilled team have established their reputation.

OSL Take:  Sri Lanka is presently undergoing an aggressive program of growth covering all principal areas of the economy on the island.  The Colombo Port City development is one of the country's major continuing mega-projects to match Sri Lanka with many financial hubs in South East Asia. Given the geographical location of Sri Lanka in the Indian Ocean, the country's relaxed corporate climate and numerous trade arrangements and the island's trade concessions have created Sri Lanka, the perfect company destination in the South Asian area. Foreign businesses/investors could, therefore, investigate possibilities for business/investment in the Port City project in Sri Lanka.

 VBS/AT/22102020/Z_TB5

 

 

CSE declares REITs as an investment opportunity to benefit from real estate investment

 

The CSE has announced the introduction of REITs. For average investors, REITs offer an opportunity to enjoy the benefits by investing in real estate and investing in publicly traded CSE securities. While investing in real estate seems to be a standard option, increasing property costs pose a significant challenge for individual investors who usually use bank loans to fund such investments. This timely launch by the CSE and SEC offers greater access to commercial real estate projects for all investor segments and an opportunity to take advantage of the recently witnessed spiraling property prices.

In 1960, in the United States, REITs were first introduced, providing a mechanism for individual investors, especially middle-income earners, to generate revenue by investing in large commercial real estate. With its increasing popularity, particularly in Thailand, Malaysia, and India, this product has made rapid progress in the Asian markets. A REIT is essentially a structure that usually owns and operates real estate, which generates income. Office buildings, shopping centers, apartments, hotels, resorts, self-storage facilities, and warehouses, which include the revenue-generating real estate assets held by the REIT.

A REIT will allow unitholders to receive a portion of the revenue generated by the rental, lease, or sale of these assets. Hence the CSE must allocate share dilution directly to the REIT unitholders. The CSE and SEC have adopted a system mandating the distribution to their investors of 90 percent of the revenue generated. The institutions developed this creative introduction explicitly with the local environment in mind, with the expectation that it would open new horizons for real estate developers and owners to turn completed revenue-generating projects into REITs. Thus this would have their units listed on the CSE under the system now made available to them and publicly traded on the secondary market, similar to equity-generating projects.

The SEC adopted the structure for REITs using rules drawn up by the SEC under sections 53 and 13 of the SEC Act. A notification in the Gazette enforced the rules as mentioned earlier on 31 July in the form of a designated structure. The detailed creation of SEC laws will regulate the overall process of REITs in Sri Lanka.

The CSE also formulated listing guidelines for the listing of units of REITs. A REIT will allow investors by investing in this lucrative investment instrument, which would deliver long-term returns, to diversify their portfolios further. Investors would benefit from a steady income stream, quick entry, and exit route through the secondary market. They would also benefit from the returns on the overall appreciation of real estate properties. The economy would also benefit from implementing anticipated job creation REITs, economic growth, increased tax revenues, listed liquidity, and foreign direct investment.

OSL Take: OSL Take: Sri Lanka's government's aggressive development program has further risen property prices, making properties on the island an accessible investment opportunity with short-term advantages. The proposed project of Colombo Port City will also improve land value. Foreign businesses/investors could, therefore, explore possibilities for business/investment in the real estate industry in Sri Lanka.

VBS/AT/22102020/Z_TB3

CIOB highlights new investment opportunities in the construction industry

 

The Ceylon Institute of Builders, a leading building institution and service provider in the construction industry, organized a seminar to raise awareness among decision-makers, practitioners, and other industry stakeholders of the new Government's new opportunities. Dr. Priyathbandu Wickrama, Secretary for the Ministry of Water Supply, Urban Development Authority, Consultancy General Manager Ananda Samarasinghe, Infrastructure, and IT Board of Investment Director Ranjan Sibera, CIOB President Dr. Rohan Karunaratne, and CIOB Secretary Eng. Saliya Kaluarachi joined the program as a presenter.

Dr. Wickrama claimed in the keynote speech that the Government would serve as a catalyst to help the construction industry and would make the payments via the planned interim budget due to the construction companies. He further mentioned that four main cities to be built, i.e., Hambantota, Trincomalee, Jaffna, and Colombo, with nine corridors of the economy. In these leading cities.

He also said that the state would use foreign funding from overseas construction firms and give sub-contracts for mega projects to local companies. The builders for local investment would be local construction firms. Dr. Priyathbandu Wickrama told the participants that in the next few years, the Government plans to invest around Rs. 790 b on other developments in water projects. He said they needed professional contractors for construction.

The Government claims that in a system made under a national strategy, there are many resources available for the construction industry. Siberia said that the Government has agreed to achieve its objectives by building as the primary industry and has called foreign players to undertake international projects. Via the construction sector, the BOI hopes to contribute 5% to the GDP.

Dr. Karunaratne claimed that he wished to help the membership of the CIOB and the industry with the new opportunities available to them in the new growth plans in Sri Lanka, in particular. He said the sector had been seriously affected over the last few years, adding that the country had acquired strong leadership with the mandate provided by the majority of citizens.

To achieve anticipated growth and financial stability, the CIOB aims to assist market stakeholders by disseminating knowledge from time to time through seminars and forums. This active seminar attends by CIOB participants from all major and specialist construction firms and branded manufacturers, experts, academics, and other industry stakeholders.

OSL Take: Sri Lanka is presently undergoing an aggressive program of growth covering all principal areas of the economy on the island.  The Colombo Port City development is one of the country's major continuing mega-projects to match Sri Lanka with many financial hubs in South East Asia. Given the geographical location of Sri Lanka in the Indian Ocean, the country's relaxed corporate climate and numerous trade arrangements and the island's trade concessions have created Sri Lanka, the perfect company destination in the South Asian area. Foreign businesses/investors could, therefore, investigate possibilities for business/investment in the Port City project in Sri Lanka.

 VBS/AT/22102020/Z_TB2

GrandSpace unbolts at Astoria-Colombo

 

GrandSpace will expand its services to Astoria-Colombo, situated in the heart of the city center, by providing its wide range of customers with the best services and increased connectivity at a popular location in the center of Colombo. This launch will be GrandSpace 's second initiative to include thoroughly serviced office facilities, including virtual offices, conference rooms, and utterly facilitated co-working spaces for day offices.

The first Kohuwala project continues to accommodate multiple small businesses and entrepreneurs with various inexpensive and scalable solutions in different fields of commerce. The new location at Colombo 3 will make the new center one of the city hub's most sought after sites, offering upgraded facilities worthy of the dynamic business lifestyle you want.

For postal purposes and other business requirements, the virtual offices also provide customers with the primary official Colombo 3 location address. Customers are often equipped with a dedicated telephone line, thereby opening up an opportunity for the customer to retain their private office without the hassle of maintaining a physical office space.

These services come with 24/7 electricity, comfortable air-conditioned rooms, an expansive lobby room, in-house tea/coffee service, housekeeping, 24/7 CCTV surveillance, adequate parking, a dining area, and resting bays for a fast power-nap or quiet time at noon, along with other services.

The versatility in office spaces offers the deciding factor for a new company and a professional location for small businesses, budget-friendly with no furnishing or infrastructure hassle, which GrandSpace already provides. "For those who are dissatisfied with cramped workplaces and those who work from home for reasons of health protection, GrandSpace is the solution. Here, anyone can opt for a seat where you are entitled to your own technical, but private and secure office space," GrandSpace Director Samila Maddumage said.

Sri Lanka is presently undergoing an aggressive program of growth covering all principal areas of the economy on the island.  The Colombo Port City development is one of the country's major continuing mega-projects to match Sri Lanka with many financial hubs in South East Asia. Given the geographical location of Sri Lanka in the Indian Ocean, the country's relaxed corporate climate and numerous trade arrangements and the island's trade concessions have created Sri Lanka, the perfect company destination in the South Asian area. Foreign businesses/investors could, therefore, investigate possibilities for business/investment in the Port City project in Sri Lanka.

OSL Take: Sri Lanka's government's aggressive development program has further risen property prices, making properties on the island an accessible investment opportunity with short-term advantages. The proposed project of Colombo Port City will also improve land value. Foreign businesses/investors could, therefore, explore possibilities for business/investment in the real estate industry in Sri Lanka.

 VBS/AT/22102020/Z_TB1

Webinar promotes investment opportunities in Brazil and Sri Lanka

 

On 15 September 2020, the Embassy of Sri Lanka in Brazil organised a webinar on 'Business Prospects and Strategies for Effective Business Entry into Brazil' in collaboration with the Export Development Board (EDB) and the Sri Lankan Department of Commerce, aimed at introducing the Brazilian market to potential exporters in Sri Lanka and assisting them in identifying the prospects available and stringent market entry into Brazil.

Over 40 Sri Lankan exporters attended the webinar, while over 1600 viewers watched the EDB video upload. In delivering the welcome remarks, Director of the Market Promotion Division, Anoma Premathilake, highlighted the importance of organising this webinar. The trade presence of Sri Lanka in the Latin American region is minimal. During the keynote speech, Ambassador Musthafa M. Jaffer emphasised the need for Sri Lankan companies to actively participate in the Latin American area to gain market access to Sri Lankan exports. The current volume of trade and market share of exports to the Latin American Region from other Asian countries, especially Brazil, is very high compared to Sri Lanka. However, many of them face similar market conditions, a level playing field, and the same tariff rates.

Maurício Manfré, the resource person of this webinar, delivered his presentation covering critical areas of the Brazilian market, including the market opportunities available for Sri Lanka in Brazil, market barriers and other impediments/challenges, standards needed, certifications and authorities' knowledge, effective business strategies, business culture (negotiation/communications).

Manfré, who has 30 years of experience in international business and law, is the Executive Director of Ultrameres Brazil. He was the former head of the Cabinet's Business Directorate, responsible for promoting exports, strategic intelligence, and attracting foreign investment through its international representative offices in the Brazilian Export Promotion Agency (APEX) under the Brazilian Ministry of Foreign Affairs.

After the presentation, the Q&A session helped answer several concerns posed by companies regarding practical problems they faced while highlighting significant gaps between Brazilian rules and regulations on imports and other significant markets. Sri Lankan companies were also encouraged to adopt creative ways of conducting market penetration during the webinar. The program was also open for importers and through the initiation of joint ventures, business alliances, and partnerships with Brazilian companies, all of which will significantly facilitate access to the MERCOSUR market.

OSL Take: OSL Take: Sri Lanka has registered continuous growth in its commercial sector by implementing the latest techniques and technology. Sri Lanka's geographical position in the Indian Ocean, its ease of doing business, and the many government-enjoyed trade agreements and trade concessions have also made it an attractive business destination in the South Asian region. This initiative has resulted in a further rise in Sri Lanka's trade and bilateral ties with many countries. Therefore, market prospects for attractive returns in Sri Lanka may pursue by foreign companies/investors.

VBS/At/21102020/Z_TB7 

United Nations and Brandix partner to promote Biomass Energy

 

COVID-19 has contributed to ongoing health and economic crisis, exacerbating the global situation in poverty and climate. Driving change in the human-environment nexus to protect the health of human and natural resources is crucial to a future that does not replicate the crisis we are in today, as Sri Lanka works to construct 'forward' better coming out of the pandemic.

In this context, renewable clean energy will provide affordable, climate-compliant solutions that can help alleviate the COVID-19 crisis and beyond. Against this backdrop, Brandix Apparel Ltd. has partnered with the United Nations Development Program ( UNDP) to promote renewable energy in Sri Lanka by facilitating model fuelwood plantations for a sustainable supply of energy in Sri Lanka.

In speaking about this relationship, UNDP Deputy Resident Representative Faiza Effendi said, "There is a huge potential for a reset as nations brace for the COVID-19 aftermath." Ambitious green recovery strategies would enable countries to rebuild their economies and deepen their energy transition. This situation is an excellent time for Sri Lanka to speed up the switch to clean energy to maintain a more substantial recovery for everyone.

Sustainable biomass energy as a renewable energy source has the potential to improve local economies. The collaboration between the UNDP and Brandix, a pioneer in Sri Lankan apparel manufacturing at the forefront of sustainability efforts and a conscientious energy user, will ensure low carbon growth in Sri Lanka while improving the company's initiatives to encourage the use of renewable biomass energy. Some of the significant initiatives include helping biomass energy suppliers implement SLS 1551, a sustainable biomass energy standard, and developing sustainable fuelwood plantations.

As the first corporate organisation to move forward in our efforts to ensure that the biomass used by Brandix responsibly purchased from accredited suppliers under SLS 1551, this MoU also reaffirms Brandix. Besides, as an extension, we will continue to engage our associates through a home garden concept to participate in the UNDP energy planting program across the region, thereby paving the way for them to improve their livelihoods while becoming active participants in our sustainability agenda.

Easily accessible, affordable, and reliable renewable energy is available. However, the potential for large-scale renewable energy remains largely untapped in many developing economies. Investments in this region will allow Sri Lanka and other countries to reap the full benefits of renewable energy in terms of growth and environment ahead of the 2030 Sustainable Development Agenda.

OSL Take: Sri Lanka requires to add substantial ability to satisfy present and future energy requirements expected to expand at around eight per cent per year. Sri Lanka has a total energy-generating capacity of 40 GWH as it depends primarily on heat energy, including a coal-fired Chinese energy plant, which accounts for 45% of its production. Insufficient rainfall has restricted the ability to generate hydropower, and the government compelled to impose power cuts in early 2019 owing to an absence of an ability to produce. To satisfy electricity shortages, the government has resorted to buying costly emergency power.

 VBS/At/21102020/Z_TB6

Trade Finance and Investments to merge with Commercial Credit and Finance

 

Sri Lanka's Trade Finance and Investments PLC and Sri Lanka's Commercial Credit and Finance PLC have declared their intention to merge the remaining company with the latter. They reported that the Central Bank approved the proposed amalgamation of Trade Finance and Commercial Credit by letter dated 21 January 2020. Further, this merger was also supported by the Board of Directors of Trade Finance and Investments PLC and the Commercial Credit and Finance PLC (COCR) on 23 September 2020.

The scheduled merger is subject to the approval of the amalgamation by the shareholders of Trade Finance and COCR in compliance with Section 241(5) of the Companies Act No. 7 of 2007. An extraordinary general meeting of COCR shareholders will convene to discuss and, if considered necessary, pass the relevant resolutions authorising the amalgamation mentioned above and related issues.

COCR currently owns 99.65 per cent of Trade Finance and Investments PLC's ordinary shares, and such claims will cancel according to Section 240(3)(a) of the Companies Act No. 7 of 2007 upon amalgamation. For each share owned in such a stock, the other shareholders of Trade Finance and Investments PLC will pay Rs. 60, and no claims in COCR and Finance PLC will allocate.

Consequently, after the amalgamation takes effect, the number of shares in Commercial Credit and Finance PLC issued will remain unchanged. Two hundred forty-seven million previously reported capital would be Rs. 2.15 billion after amalgamation. The modified floated market capitalisation was Rs. 11 million as of 21 September 2020, and it will be Rs. 984 million after amalgamation. The percentage of public holdings as of 21 September 2020 was 0.35%, and it will be 13.22% after amalgamation.

Sri Lanka ended 2018 with inflation of 4.8 per cent, and economic growth estimates at around 2.5 per cent of GDP. Most central banks globally have lowered interest rates. India's Reserve Bank has lowered interest rates to counter India's economic slowdown. Accommodation, food service, and transportation services have contracted following the attacks on Easter Sunday.

OSL Take:

The observations of the local industry savant that Sri Lanka's goal of US$ 5 billion IT exports was attainable indicate the developments recorded by the IT sector including the emergent prospects in the field. Interested foreign businesses/investors could look at investing ventures in Sri Lanka's IT sector and gain profits while expanding the local IT market.

 VBS/At/21102020/Z_TB5

Sri Lanka's Sampath Bank ranked amongst Top 1000 World Banks 2020

 

On the 50th anniversary of the rankings, Sampath Bank PLC was recently ranked among the Top 1000 World Banks in 2020 by the UK Banker magazine, continuing to win awards and recognition in Sri Lanka and worldwide. The Banker, which has been delivering global financial intelligence since 1926, is the world's premier banking and finance resource. The Banker is the industry's leading source of knowledge and research.

The Banker's Top 1000 World Banks list has set the industry benchmark since 1970, providing comprehensive intelligence on the health and prosperity of the banking sector. "It is a great privilege to be recorded alongside the world's leading financial service providers in the Top 1000 World Banks 2020 of The Banker magazine," said Nanda Fernando, Managing Director of Sampath Bank PLC.

This achievement reflects our strong foundations, coming when we struggle for more than a year with competitive market conditions. This achievement would not have been possible, deprived of the leadership of our Board of Directors, the support of my entire Sampath Bank team, and the love and trust that countless Sri Lankans have invested in us. To give the nation more excellent value, we will continue to work.

The asset base of Sampath Bank exceeded Rs. 1 trillion earlier this year, making it the youngest Bank in Sri Lanka and one of very few to achieve this in the country's banking sector. Despite the uncertain market conditions over the past one and a half years, the Bank has continued to increase its asset base. This initiation reflects a true testament to Sampath Bank's strength and stability and the confidence invested by investors and customers alike in it.

At the significant World Finance Banking Awards organized by the UK-based World Finance journal, Sampath Bank recognizes as Sri Lanka's 'Best Retail Bank' and 'Best Commercial Bank.' In a survey commissioned and conceptualized by LMD and conducted by Brand Finance, the Bank was voted the most loved banking brand globally, placed among the top 10 'Most Loved Brands' in LMD's Brands Annual rankings, and placed 5th among the Most Valuable Entities in Sri Lanka.

Sampath Bank is a 100% local bank that has deeply rooted itself in the lives of the Sri Lankan people. Founded in 1987, the Bank has become a state-of-the-art financial institution which, thanks to its constant innovation and customer-focused approach to business, continues to be a market leader today. The Sri Lankan banking sector has launched many firsts, including the introduction of ATMs to Sri Lanka, extended banking hours, and slip-less banking, to name a few.

OSL Take: The statements by the top management of the Sampath Bank reveals the many business opportunities in Sri Lanka, and also for global companies, it is a welcome sign looking at expanding into other parts of the region. Further, the government of Sri Lanka focused on increasing the inflow of foreign direct investments to the country.

A hopeful sign for international companies/investors looking at doing business with the state is to recognize the need to modernize the laws of the country to attract more foreign investments to Sri Lanka. The geographical location of Sri Lanka in the Indian Ocean, the country's ease of doing business, and the many trade deals and trade concessions enjoyed by the state have made it an attractive business destination in South Asia.

VBS/At/21102020/Z_TB5

Sri Lankan Government to boost foreign income from exporting Moringa leaves to the foreign market

 

One hundred farming families in the Wellawaya Divisional Secretariat successfully harvest Moringa (drumstick) leaves in Athiliwewa and Siripuragama districts. The farmers in the area who grow drumsticks claim they can easily earn about 60,000 rs a month. Moringa trees leaves are harvested and shipped into foreign countries. Farmers who grow these trees say Sri Lankan drumstick leaves are in high demand on the foreign market. Farmers now earn a high income because of the market value of drumstick leaves of Rs—45-47 per kilo.

The project launched under the Ministry of Agriculture has already taken actions to provide the farming community with the requisite technical know-how and agricultural equipment free of charge. No disease affects the Moringa trees, and they grow in the dry region, according to the agriculture officials.

The farmers are thus able to conduct this cultivation very quickly and will take steps in the future to popularise this cultivation in the district, they said. State Agriculture Minister Sashindra Rajapaksa visited the plantations yesterday afternoon to inspect the farms and inquire into the necessary state intervention.

Speaking to the media, Sashinda Rajapaksa said it would provide all appropriate state support for these cultivations. He further said the state would take all possible measures for the good of the farmers and take steps to improve the peoples economy by bringing in foreign exchange in the future by growing this form of crops

Interested foreign businesses could look at introducing the latest technologies and trends in the global agriculture industry to Sri Lanka and also look at forming joint ventures with local companies to produce agricultural goods for export markets as well.

OSL Take: Sri Lanka’s agriculture sector-driven towards growth following setbacks suffered due to changing weather patterns. Also, the agriculture sector is engaged in improving the yields of key crops, especially paddy, which remains the main livelihood of the rural Sri Lankan community.

The change to upgrade the country’s agriculture sector by introducing the newest technologies with assistance from India and China would enhance Sri Lanka’s agriculture exports. Sri Lanka already has trade accords with several countries and trade privileges from the EU and the US, which would benefit any business involved in exporting goods from Sri Lanka. Therefore, Sri Lanka offers an excellent base for foreign companies interested in exporting goods from Sri Lanka to overseas markets.

The support prolonged by multilateral donor agencies to uplift Sri Lanka’s agriculture sector and the Sri Lankan government’s commitment to developing the industry are encouraging signs for foreign businesses/investors to discover business/investment opportunities in the island’s farming sector. Foreign businesses could also examine the possibility of engaging in the farming export sector, given the many trade agreements and trade privileges enjoyed by Sri Lanka with foreign countries.

 VBS/At/21102020/Z_TB3