Lanka, Bahrain trade stronger-Rishad

From Bahraini News Agency

Sri Lanka seeks Bahraini investment in the hospitality sector, as the country needs to add 35,000 rooms by 2016. Tourist flow in 2013 was 1.2 million. That is expected to touch 2.5 million in 2016, said Rishad Bathiudeen, the Sri Lankan Minister of Industry and Commerce.

His Bahraini counterpart, Dr Hassan Fakhro said that Bahrain’s future economic growth hinges on the manufacturing sector, which is expected to be the primary driver of both revenue and jobs. Bahrain’s focus is on high value added industries. The investment parks and industrial areas that dot Bahrain highlight this factor.

Officials of the two chambers of commerce and industry then entered into a memorandum of understanding. After the signing, Bathiudeen said, his nation was committed to building projects in the north eastern states. This region is now our focus after the long and protracted war against terroris.

Turing to bilateral trade between Sri Lanka and Bahrain, he said at $60 million the present is well below the potential. There is huge room for growth. There is great scope for significant expansion in the trade relation.

In tourism the two countries can do a lot together. The same holds for agricultural exports, including fruits and vegetables. Both the countries can join hands to build up a fisheries sector, said the Sri Lankan minister.

In the construction sector, there are companies, with a good track record in foreign projects. Bahrain’s strength in the information technology and e-commerce could be used to benefit in Sri Lanka, the minister said.

“Our GDP was 7.2 per cent in 2013 and is projected to touch 8.2 per cent by year end. The potential for investment is large in the tourism sector. Trading is also very neglected. We can do more. While we import oil, we export tea. We are number one in the world. In this, avenues for developing Bahrain as a re-export hub is high. Import the tea from Sri Lanka and then export it to the the Middle East,” he added.

Sri Lanka’s per capita is now $3000. That is expected to move to $4000 in another two years, he said.

Bahrain’s business community should capitalize on the manufacturing and trade sector. The FTA’s with India, Pakistan and the much awaited agreement with China would help open the market to some of the largest markets of the South Asian region. For businesses investing in Sri Lanka, repatriation of profits and dividends is open. The private sector of the country now contributes 24 per cent to the GDP.

The Minister for Finance and Chairman of the National Oil and Gas Authority, Shaikh Ahmed bin Mohammed Al Khalifa said, that the relation on the political side is strong and on the economic side is growing. The meetings in the BCCI will foster greater growth in business between the two countries.

“The double taxation between both countries has been eliminated, free trade agreements, almost similar tax regimes are pointers to excellent climate for growing bilateral trade. The private sector will now have to play its role — building the bridges and taking the relation forward,” he added.

He stressed on the country’s zero tax regime, 100 per cent foreign ownership, the FTA with the US, Europe and with the GCC countries as impetus for growth of businesses being set up in Bahrain.

BNA