As Sri Lanka and Indonesia embark on a renewed trade and economic relationship, it is important to harness the true potential between the two countries. The macro economic stabilization indicates that Sri Lanka is ready for business. The country has become a preferred investment destination due to its strategic location, literate and trainable workforce and investor friendly policies, Minister of International Trade Malik Samarawickrama said. The minister was speaking at the Sri Lanka – Indonesia Business Forum held last week in Colombo.
The country’s growth is driven by private sector investments. The process of approval and facilities for doing business in Sri Lanka is more streamlined at present. We expect the Ease of Doing Business rank to improve further and the fruit of hard work will show in the years to come, he said.
Sri Lanka will become a formidable economic hub in the region. The country focuses on growing and sustaining the traditional markets of USA and EU while looking at regional markets as well. We will be setting up many more industrial zones in future along with the Thailand Zone, the Minister said.
Sri Lanka and Indonesia have much potential on developing trade and investment between the two countries which are at a modest volume and value at present. We need to scale up the bilateral relationship and further explore potential, Ceylon Chamber of Commerce President Rajendra Theagaraja said.
The economic balance is shifting from the West to Asia and Asia is becoming the economic power house of the world. It is necessary to diversify exports and signing of FTAs with the neighboring countries are important, he said.
A high powered business delegation from Indonesia visited Sri Lanka during the Indonesian President’s recent visit. An MoU was signed to further strengthen the economic co-oporation between the two countries.
The country needs to facilitate opportunities for business growth. Sri Lanka could export gems, jewellery, tea and rubber while Indonesia could export waste paper, fabric, electronic items and both countries could benefit from the growing tourism industry, he said.
“We need to make use of the potential to take trade to the next level. Trade is the most important factor for economic development. As Sri Lanka is at the threshold of expansion the country needs to boost economic co-oporation with regional countries,” he said.
The data does not truly reflect the economic co-oporation between the two countries. With a GDP of nearly 3 trillion, Indonesia contributes 35 percent of the ASEAN GDP. The economic fundamentals of the country remain solid, Coordinating Minister of Economic Affairs in Indonesia Darmin Nasution said.
Indonesia ranked 72nd in the Ease of Doing Business index for 2018 and is working towards further improving its ranking. The country’s investment grade from rating agencies is satisfactory. It has set up task forces on acceleration and implementation of policies and infrastructure development, he said.
“Currently we are building 11 special economic zones and 10 strategic zones for tourism. This regional based development is planned for equitable development of the country”, he said.