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2004 Business Opportunities In Sri Lanka Presentation by Ambassador Devinda R. Subasinghe Sri Lankas Ambassador to the US.

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Presentation on theme: "2004 Business Opportunities In Sri Lanka Presentation by Ambassador Devinda R. Subasinghe Sri Lankas Ambassador to the US."— Presentation transcript:

1 2004 Business Opportunities In Sri Lanka Presentation by Ambassador Devinda R. Subasinghe Sri Lankas Ambassador to the US

2 Basic Facts Area – 65,606 sq km Area – 65,606 sq km Population – million Population – million Labor Force – 6.7 million Labor Force – 6.7 million Literacy Rate – 92% Literacy Rate – 92% Languages – Sinhala, Tamil, English Languages – Sinhala, Tamil, English Religions – Buddhism -70% Hinduism 15% Religions – Buddhism -70% Hinduism 15% Christianity 8% Christianity 8% Islam 7% Islam 7% Government type - Republic Government type - Republic Capital - Colombo Capital - Colombo Independence - 4 February 1948 (from U.K.)Independence - 4 February 1948 (from U.K.)

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4 Sri Lanka: Overview Sri Lanka is an island located in the Indian Ocean, at the base of the Indian Sub-Continent, 880 km north of the Equator.Sri Lanka is an island located in the Indian Ocean, at the base of the Indian Sub-Continent, 880 km north of the Equator. Sri Lanka is a multi-ethnic, multi-religious country with a diverse and rich culture dating back to 2,500 years.Sri Lanka is a multi-ethnic, multi-religious country with a diverse and rich culture dating back to 2,500 years. A land of endless enchantment for visitors from all over the world. A land of endless enchantment for visitors from all over the world. Its fragrant spices, precious gems, legendary natural beauty, sublime culture and hospitable people made it South Asias paradise island.Its fragrant spices, precious gems, legendary natural beauty, sublime culture and hospitable people made it South Asias paradise island.

5 Sri Lanka: Overview Sri Lankas strategic location on the sea lanes between the East and the West is an advantage to the islands positioning as the hub of South Asia.Sri Lankas strategic location on the sea lanes between the East and the West is an advantage to the islands positioning as the hub of South Asia. Sri Lankas most dynamic sectors in the economy are textiles and apparel, food processing, tourism, food and beverages, telecommunications and, insurance and banking.Sri Lankas most dynamic sectors in the economy are textiles and apparel, food processing, tourism, food and beverages, telecommunications and, insurance and banking.

6 US-Sri Lanka Relations A Historical Glimpse A history of 200 years of people-people contacts. 19 th century trade involved the import of New England ice to Sri Lanka and the export of Sri Lankan graphite to America. Joseph Dixon, popularizer of the modern lead pencil visited Sri Lanka in 1838 to arrange for export of graphite. As early as 1813, Rev. Samuel Newell, a New England clergyman, engaged in Missionary activity in Ceylon (Sri Lanka. Mrs. Harriet Winslow (great-great grandmother of the late John Foster Dulles) founded a girls boarding school in 1824, considered the first in Asia. In 1917, Dr. Ananda Coomaraswamy, one of worlds leading Oriental scholars, was named the Curator of the Boston Museum of Fine Arts. Formal diplomatic relations were established in 1948.

7 Sri Lanka-US Business Relations Government of Sri Lanka currently pursuing a Free Trade Agreement with the US Government to open markets bilaterally.Government of Sri Lanka currently pursuing a Free Trade Agreement with the US Government to open markets bilaterally. Trade and Investment Framework Agreement (TIFA) signed with the US in July 2002 and establishment of Trade and Investment Joint Council to promote trade and investment.Trade and Investment Framework Agreement (TIFA) signed with the US in July 2002 and establishment of Trade and Investment Joint Council to promote trade and investment. Sri Lanka has signed an Investment Promotion/ProtectionSri Lanka has signed an Investment Promotion/Protection Agreement, an Avoidance of Double Taxation Agreement, an Open Skies Agreement and a Protection of Intellectual Property Rights Agreement with the US to promote and guarantee protection of US FDI in Sri Lanka. The Sri Lanka Congressional Caucus of the 108 th Congress has been reactivated to enhance US- Sri Lanka bilateral relations.The Sri Lanka Congressional Caucus of the 108 th Congress has been reactivated to enhance US- Sri Lanka bilateral relations. A Sri Lanka Working Group at the United States Chamber of Commerce was established in September 2003 to foster increased business relationships with Sri Lanka and to create a greater awareness of the business opportunities that exist for US companies.A Sri Lanka Working Group at the United States Chamber of Commerce was established in September 2003 to foster increased business relationships with Sri Lanka and to create a greater awareness of the business opportunities that exist for US companies.

8 Sri Lankas Trade with the US Sri Lankas Trade with the US Total trade between Sri Lanka and the US was US$ 2 billion in Total trade between Sri Lanka and the US was US$ 2 billion in Total trade between Sri Lanka and the USTotal trade between Sri Lanka and the US - US$1.80 billion in the first 11 months of Sri Lanka exports to the US was US$1.7 billion (first 11 months of 2003).Sri Lanka exports to the US was US$1.7 billion (first 11 months of 2003). US exports to Sri Lanka was US$1.4 million (first 11 months of 2003).US exports to Sri Lanka was US$1.4 million (first 11 months of 2003).

9 Sri Lankas Exports to the US Ceylon tea, considered the best in the world, caters to speciality tea segment of the US market. Sri Lanka is the second largest supplier of packeted tea and the third largest supplier of tea bags to the US. Sri Lanka also exports green tea.Ceylon tea, considered the best in the world, caters to speciality tea segment of the US market. Sri Lanka is the second largest supplier of packeted tea and the third largest supplier of tea bags to the US. Sri Lanka also exports green tea.

10 Sri Lankas Imports from the US Cereals (wheat)Cereals (wheat) Electrical machineryElectrical machinery Fabrics and yarnsFabrics and yarns TobaccoTobacco Paper and paper boardPaper and paper board Rubber productsRubber products ChemicalsChemicals AutomobilesAutomobiles PlasticsPlastics

11 Major US Companies Operating in Sri Lanka Major US Companies Operating in Sri Lanka The Limited Inc.The Limited Inc. Caterpillar PowerCaterpillar Power Ventures CorporationVentures Corporation Sara Lee branded ApparelSara Lee branded Apparel KellwoodKellwood Wal-mart Stores Inc.Wal-mart Stores Inc. Bell HelicopterBell Helicopter AnsellAnsell American International Group Inc.American International Group Inc. Citi Group inc.Citi Group inc. Chevron Texaco/CaltexChevron Texaco/Caltex Galleon GroupGalleon Group General ElectricGeneral Electric 3M Company3M Company AES CorporationAES Corporation Computer Associates International Inc.Computer Associates International Inc. Gloria VanderbiltGloria Vanderbilt The Coca Cola CompanyThe Coca Cola Company Liz Claiborne Inc.Liz Claiborne Inc. Nathan AssociatesNathan Associates May Department Stores InternationalMay Department Stores International JP Morgan ChaseJP Morgan Chase Singer CorporationSinger Corporation Mast Industries Inc.Mast Industries Inc. Fed Ex CorporationFed Ex Corporation Millennium Information TechnologiesMillennium Information Technologies IBM CorporationIBM Corporation VIRTUSAVIRTUSA Lanka Bell (Pvt.) Ltd.Lanka Bell (Pvt.) Ltd. CeletronCeletron Playknits GroupPlayknits Group J. Walter ThompsonJ. Walter Thompson Union CarbideUnion Carbide Warner LambertWarner Lambert

12 Leading Brand Names Manufactured in Sri Lanka

13 The Limited Inc. and Sri Lanka The Limited, the Columbus, Ohio based company has been purchasing intimate apparel (Victorias Secret) from Sri Lanka for the last 15 years. Sri Lanka manufactured lingerie, from the state-of the-art factories employing highly skilled and literate workers, considered the best product on the shelves at Victorias Secret Stores. Victorias Secret sources over US$350 million worth of merchandise from Sri Lanka. Sri Lanka recognized as one of Victorias Secrets leading manufacturing bases in the world.

14 Trade Opportunities for Companies in Ohio Trade Opportunities for Companies in Ohio Potential Ohio Exports Agricultural Products – Soybeans, corn, Wheat, feed grainsAgricultural Products – Soybeans, corn, Wheat, feed grains Medical Rubber ProductsMedical Rubber Products Industrial Machinery & ComputersIndustrial Machinery & Computers Paper and Paper BoardPaper and Paper Board Potential Imports from Sri Lanka ApparelApparel TeaTea Gems and JewelryGems and Jewelry Rubber and Rubber GoodsRubber and Rubber Goods Information Communication Technology (ICT)Information Communication Technology (ICT) PlasticsPlastics

15 Opportunities under India-Sri Lanka Free Trade Agreement Sri Lanka as a value addition platform to the Indian sub- continent.Sri Lanka as a value addition platform to the Indian sub- continent. A market of over 1.0 billion people.A market of over 1.0 billion people. Market Access – Over 80%of goods can enter on duty free basisMarket Access – Over 80%of goods can enter on duty free basis Sri Lanka-India land bridge project proposed. Pre-feasibility study is to be undertaken to determine viability.Sri Lanka-India land bridge project proposed. Pre-feasibility study is to be undertaken to determine viability. Potential sectors for US investmentPotential sectors for US investment Rubber, Paper & Paper board, garments & textiles, iron & steel, Machinery & mechanical appliances, electronics/electrical and automobiles & spare parts.

16 Indo-Lanka Land Bridge Location

17 The Land Bridge to India

18 Sri Lanka in US Study Abroad Programs DRAFT SLIDE for comments please. The ISLE (Intercollegiate Sri Lanka Education) Program initiated in 1982, is based in Kandy, Sri Lanka. Participating colleges include, Bates, Bowdoin, Carleton, Colby, Grinnell, Holy Cross, Swarthmore and Whitman. Majors include, Religion, Political Science, Development Studies, Sociology and Anthropology, Womens Studies, Psychology and Linguistics. Internships available with Government and Private Institutions and, NGOs. The American Institute for Sri Lankan Studies (AISLS), established in fosters excellence in American research and teaching on Sri Lanka - Promotes exchange of scholars and scholarly information between the US and Sri Lanka AISLS Fellowships support 2-4 months research in Sri Lanka by US citizens holding PhDs or equivalent.

19 Investment Opportunities for Ohio Companies in Sri Lanka Investment Opportunities for Ohio Companies in Sri Lanka Infrastructure Development- Power & Energy; Ports & Airports; Water Supply & Sanitation; HighwaysInfrastructure Development- Power & Energy; Ports & Airports; Water Supply & Sanitation; Highways BiosciencesBiosciences Information Communication TechnologyInformation Communication Technology Rubber productsRubber products Automobile partsAutomobile parts Vertical integration of textiles/accessoriesVertical integration of textiles/accessories Food processing industriesFood processing industries

20 Business Climate The Sri Lankan economy is one of the most business friendly and liberalised in South Asia. Total Foreign Ownership Total Foreign Ownership No restriction on Foreign Exchange Transactions(related to current account payments). No restriction on Foreign Exchange Transactions(related to current account payments). Safety of Foreign Investments Guaranteed by the constitution. Safety of Foreign Investments Guaranteed by the constitution. Agreements signed with many countries Agreements signed with many countries Bilateral Investment Protection Bilateral Investment Protection Double Tax Relief Double Tax Relief Equal Treatment: Foreign & Local Investors Equal Treatment: Foreign & Local Investors Legal & Regulatory framework Legal & Regulatory framework Sophisticated Sophisticated Transparent Transparent

21 Investment Incentives in Sri Lanka Investment Incentives in Sri Lanka Tax holidays from 5 to 20 years.Tax holidays from 5 to 20 years. Concessionary tax at 15% after expiry of tax holiday.Concessionary tax at 15% after expiry of tax holiday. Import Duty Exemption for Capital Goods.Import Duty Exemption for Capital Goods. Import Duty Exemption on Raw Materials if utilized for exportImport Duty Exemption on Raw Materials if utilized for export Exemption from Exchange Controls.Exemption from Exchange Controls. No restriction on repatriation of dividends, profits etc.No restriction on repatriation of dividends, profits etc. Free transferability of sharesFree transferability of shares The right to 100% foreign ownership in almost all sectors of the economyThe right to 100% foreign ownership in almost all sectors of the economy Concessionary Taxation on expatriates incomeConcessionary Taxation on expatriates income Rubber productsRubber products

22 A GREAT PLACE TO VISIT A GREAT PLACE TO WORK A GREAT PLACE TO LIVE Thank You!

23 Embassy of Sri Lanka 2148, Wyoming Avenue NW Washington DC Telephone : Fax : E mail : Website :


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