In spite of
being aware of Belt and Road Initiative (BRI) ventures, the private sector in
Sri Lanka needs stronger policy support to exploit opportunities and practical
assistance to work with Chinese companies, an official said yesterday.
Speaking at a
discussion on the BRI, Ceylon Chamber of Commerce Chief Economist Shiran
Fernando noted that a survey conducted among members had shown that while 51
percent of those who responded had a reasonable idea of the BRI and its ties to
Sri Lanka and 10 percent had an advanced understanding, many struggled to
relate their businesses to well-known projects.
"Sri Lanka
received the second-highest level of BRI-related funding from China between
2000 and 2017, after Pakistan. The private sector has described the Colombo
International Financial City (CIFC) or Port City, the Port of Hambantota and,
to a lesser extent, the industrial zone of Hambantota as having the most useful
for their business interests. We were, however, less aware of how to respond to
most of these opportunities," Fernando said.
The survey
showed that most businesses (28 percent) wanted the government to encourage the
participation of private sector companies in projects. Many others wanted
support to start businesses in the Port City, while 24 percent wanted support
from government to joint ventures between Chinese and local companies. A
smaller 16 percent wanted support to encourage collaboration in technology and
10 percent wanted support to do business in the industrial zone of Hambantota.
"The
private sector also wanted legislation to facilitate joint ventures or public-private
partnerships, facilitate business arbitration that would involve not only China
but also other republics, open up land for investors and support advanced
levels of technical skills for service delivery such as logistics. The
recommendations included investing in improving the capabilities of the local
labor force, reducing barriers to setting up businesses for investors,
introducing laws to facilitate Public-Private Partnerships (PPPs), Build Own
Transfer (BOT) and arbitration.
Survey
respondents have identified many obstacles including geopolitical effects,
local business fears about trade liberalization, and anti-globalization
sentiment patterns. "Sri Lanka stands to gain from joining the BRI.
However, Sri Lanka's BRI activities attracted both good and bad news. As
regards foreign policy, the Sri Lankan President has categorically said that
India will be our number one concern for strategic security for all practical
purposes.
He has also said
that Sri Lanka wants to be a neutral country and to maintain friendly nations
with all. Sri Lanka does not want to get entangled in engagement in the Indian
Ocean region between the world's superpowers. Besides, Sri Lanka must retain
ownership of all of its national assets, "Admiral Professor Jayanath
Colombage, Additional Secretary to the President (Foreign Relations), told the
meeting.
OSL Take: The Belt and Road Initiative expected to
possibly become the most significant infrastructure project ever involving 68
countries around the world resurrecting the old “Silk Road” that used to link
Europe and Asia.
The objective of
the initiative is to make economic and trade activities along the route dynamic
and vigorous once again establishing it as the world’s most dominant trading
area. The Belt and Road Initiative will complement the government of Sri
Lanka’s aim of establishing Sri Lanka as a global hub and also open avenues for
innumerable opportunities.
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