While expressing interest in expanding rubber imports from Sri Lanka, Slovak Finance Minister Peter Kazimir said bilateral trade between Sri Lanka and Slovakia can certainly go beyond the present level by harnessing the potential of both countries which has immense scope for expansion in trade and investment.
He was speaking at a Sri Lanka-Slovakia Business Forum in Colombo last week.
Accompanying a nine-member delegation from Slovakia, the Finance Minister said, following the post Soviet era restructuring, Slovakia is today a manufacturing economy with over 40 percent of its industrial exports coming from the automotive industry.
Slovakia has some of the world’s leading brands such as KIA, Volkswagen, Jaguar, Land Rover, Audi and PSA Peugeot Citron manufacturing in the country. The minister said that Slovakia is keen to send a business delegation to Sri Lanka and share its expertise in automobile and other sectors driving the Slovakian economy.
Slovakia is experiencing an ongoing economic expansion driven by increasing domestic demand as well as booming investment both local and foreign.
The GDP growth of Slovakia has doubled since 2013 and reached 3.3 percent in 2016.
The Minister said the current position with regard to bilateral trade between Sri Lanka and Slovakia is at an unsatisfactory level and that steps should be taken to boost trade and investment between the two countries.
“Slovakian entrepreneurs could assist Sri Lanka with their expertise in the automobile, ICT and electronic sectors which are Slovakia’s great strengths,” Kazimir said.
Sri Lanka and Slovakia trade amounted to around US$ 45 million last year. Apparels accounted for the largest export item to Slovakia while machinery was the main import item.
The delegation from Slovakia was on a three-day tour to the country to explore trade and investment opportunities between Sri Lanka and Slovakia. A memorandum of understanding between the Ceylon Chamber of Commerce and the Slovakia Investment and Trade Development Agency was signed during the visit.
The delegation shared their views on the potential for trade and investment between Sri Lanka and Slovakia while also underscoring the importance of improving infrastructure facilities such as transportation in Sri Lanka to make the destination attractive to investors.
A delegation representative said on the sidelines of the forum that the tour to the elephant orphanage in Pinnawala was not a smooth journey due to the traffic congestion that took almost four hours to reach the location.
“I am from a company into oil related business but I do not see any potential for trade and investment in Sri Lanka,” he said.
However, the Slovakian delegation was quite optimistic that trade and investments between the two countries that have lot in common could develop to a higher level.
“Slovakia and Sri Lanka must make full use of its potential to increase trade and investment. Slovakian companies are present in Sri Lanka and the number could increase with expansion in trade and investment,” the minister said.
“Some think that Slovakia is small country that has nothing much to offer to the rest of the world. Slovakian economy is expanding and we are open to business,” a representative of the Slovak Investment and Trade Development Agency said.
Slovakia is considered a destination for investments due to its strategic location in Europe with great export potential, political and economic stability, cost effective, skilled and educated labour force, excellent multilingual skills and one of the most open economic in the world.
Slovakia has the highest productivity for labour. Its skilled workforce has been a key driver of economic growth over the years.
Its vibrant automobile, ICT, electronics, tourism and Minting industries are the pillars of the economy. Slovakia manufactures coins for Sri Lanka.
The Slovak Investment and Trade Development Agency recognized the facilities offered by the Board of Investment of Sri Lanka and the highly trainable workforce in Sri Lanka.
Honorary-Consul for Slovakia in Sri Lanka, Mahen Kariyawasan said Sri Lanka and Slovakia have great potential for growth in defence, minting and tourism sectors.
“There is an investment coming from Slovakia for the construction of an ayurveda resort in Sri Lanka,” he said.