Sun Line page5: Economic Synergies between Sri Lanka and Bahrain

Economic Synergies between Sri Lanka and Bahrain will lead to enhanced

trade and investment- Bahraini Minister of Trade and Investment.

Media release

Media Department ,Board of Investment of Sri Lanka

30th July 2009

Hon Anura Priyadharshana Yapa, Minister of Enterprise Development and Investment Promotion welcomed a delegation from the Kingdom of Bahrain headed by His Excellency Dr Hassan Abdullah Fakhro, Minister of Commerce and Industry of Bahrain and consisting of Dr. Essam Abdullah Fakhro, Chairman of the Chamber of Commerce of Bahrain and other senior officials.Dr Fakhro is a senior member of a high-powered delegation from the Kingdom of Bahrain that is headed by the Prime Minister of Bahrain, His Royal Highness Khalifa Bin Salman Al- Khalifah which is currently visiting Sri Lanka.

The governments of Sri Lanka and of Bahrain are holding discussions that will cover a wide range of issues aimed at expanding the scope of bilateral diplomatic and economic relations and co-operation. The discussions between Minister Yapa and the BOI with the Bahraini delegation centered on expanding trade and investment relations. At the discussions Minister Yapa described Sri Lanka’s liberal economy and newly improved investment structure. With the resolution of the ethnic conflict, the interest in investing in Sri Lanka is building up. Also covered in the Minister’s briefing to the Bahraini delegation where the advantages Sri Lanka offers to investors through international arrangements such as Indo- Sri Lanka Free Trade Agreement. The Sri Lanka Pakistan Free Trade Agreement and the European Union GSP+ Agreement. Dr Fakhro, Minister of Trade and Commerce of Bahrain said that his delegation was deeply touched by the warm reception accorded by The honorable President of Sri Lanka and by the other Sri Lankan Ministers they met. He spoke of the excellent ties that exist between the two countries with some 40,000 Sri Lankines working in this country at different levels. The Bahraini delegation was evaluating areas of economic co-operation with Sri Lanka in sectors such as tourism, finance, gems, fish farming and food security. Minister Fakhro added that there existed a lot of synergies between the Sri Lankan and Bahraini economies that could thus compliment each other. Hence relations could be built up to the extent where Bahrain would become Sri Lanka’s “gateway to the Middle East and Gulf regions while Sri Lanka could become Bahrain’s gateway to Southern Asia and the Far East”.Bahrain had two major strengths: financial services and aluminium smelting. In the case of the former, there are at present about 530 banks and other financial institutions based in Bahrain, making the Kingdom one of the main financial hubs in the Gulf. Aluminium smelting and other related industries were a major activity in Bahrain and another area of possible co-operation. In addition, Minister Fakhro added that the Prime Minister of Bahrain had expressed interest in boosting Sri Lankan agricultural production. This was in relation to the Kingdom’s objective of achieving food security. The Middle East is a major food-importing region and Sri Lanka could emerge as a major exporter of food to Bahrain in the future. One senior member of the Bahraini delegation was Dr. Essam Abdullah Fakhro, the Chairman of the Chamber of Commerce of Bahrain.The BOI expects that the visit of this high-powered Bahraini delegation will pave the way for an expansion of FDI from that country to Sri Lanka in view of the end of hostilities and an increase worldwide in interest and investor confidence.There are currently three Bahraini enterprises in the country that operate in Sri Lanka under the Board of Investment regime. One of them is a sea Vessel maintenance and management enterprise while the other two that operate under normal laws and holding companies. The other members of the Bahraini delegation were Ms Iman Ahmad Al-Dosri Joint Secretary and Mr. Khalil Ibrahim Mhana, Senior Specialist, both from the Ministry of Commerce and Industry of Bahrain. Mr. B.H.M Ratnasiri, Secretary Ministry of Enterprise Development & Investment Promotion and Mr S.J.S Chandraguptha, Acting Additional secretary, Ministry of Enterprise Development and Investment Promotion, represented Sri Lanka. Senior BOI officials included Mr. Shivan de Silva, Executive Director (Promotion), Dr Nihal Samarappuli, Executive Director (Research & Policy advocacy), Mr. Dilip S.Samarasinghe, Director (Media & Publicity), Mrs. Champika Malagoda, Director (Research & Policy Advocacy), Mr. C.Ignatius, Director (Promotion) and Mr. A.W.M Faizal Senior Manager. Senior Foreign Ministry officials participating at the meeting included Mr. Ahmad A.Jawad, Director General/ Economic Affairs and Ms Yasoja Gunasekera, Director Economic Affairs.