Attracting Foreign Direct Investment

The road to funding Sri Lanka’s ambitious plans to increase its GDP over  the  next five years is heavily dependent on its ability to attract foreign direct investment. The way forward may be building large industries with funding from other countries  supported by their supply chains. However,  the issue of Sri Lanka’s lack of basic infrastructure, including mass transport for people and goods, accommodation for workers close to the industries and cheap electricity may hamper large investments. In  Free Trade Zones, pioneered the concept of export processing zones way back in 1979 and the early 1980s, and then got stuck at that level.  No substantial development  taken place in  infrastructure.  .Proper highways  in Sri Lanka is not adequate and also traffic  congestion will not attract  foreign investments. Coal power plant is being built only now, though fortunately this is a large scale power generation plant which is cost effective. Therefore,  when it comes to infrastructure  Sri Lanka is  still at the starting point. No  investor was willing to put up the money to build these sorts of plants when the war was going on. There is a fabulous opportunity here for  Sri Lanka  to leapfrog into more efficient technologies. Previously  building these plants were much more expensive. At present one can avail of environmentally friendly solutions for power generation. FDI is so important, because all the concerns where  had foreign direct partners, such as in the solid tyre industry Trelleborg AB or in garments, the partnerships between MAS and Noyon Dentelles the French lace maker, Dogi – the knit fabric maker from Spain, Sri Lanka is right at the cutting edge of the latest technology. Sri Lanka is extremely attractive in geographically  and there is  no better place. Sri Lankan  people are the cleverest people in the world. Also  Sri Lanka  can absorb technology very fast. Sri Lanka