Ongoing economic reforms in Sri Lanka have excited Indian corporate investors, a leader of a business delegation from Confederation of Indian Industry (CII) to Colombo has told the Minister of Industry and Commerce Rishad Bathiudeen.
“Ongoing economic reforms in Sri Lanka have awakened our interest here,” Ramesh Kumar Mutha, the leader of the CII business delegation said during a meeting with the Minister on Thursday.
“Members of my delegation are keen in partnering in energy, LNG Gas, export links, and water supplies here. We are scouting for investments in Sri Lanka in these sectors. For example, Petronet LNG Ltd, India’s largest importer of liquefied natural gas, has called for a large scale project in Sri Lanka,” Mutha said.
Confederation of Indian Industry (CII) is India’s premier business association with over 8,300 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 200,000 enterprises from around 250 national and regional sectoral industry bodies.
Among CII industry sectors and companies meeting Minister Bathiudeen was Petronet LNG, India’s biggest player in their domestic LNG sector. Petronet is bidding to enter the Sri Lankan market to supply the new, green LNG, and also to revolutionize the present LNG supply system here as well.
Other businesses in the delegation included Tata Motors, Mohan Mutha Exports, Caldery’s India Refractories, tobacco processor Ankita Overseas Ltd and Shubham Aqualink water supplies.
Minister Bathiudeen welcoming the Indian investors to Sri Lanka industries said the Unity government’s aim is to develop the economy towards higher middle income ranks and reforms play a key role in it.
The Minister pointed out that Indian Investment to Sri Lanka are annually from $ 50 to $70 million and Indian investors have a significant role in Sri Lanka.
“India was the fifth largest investor in Sri Lanka in 2015. Your investments can increase our two way trade. Last year our total bilateral trade was $4.3 billion and our leading exports to India showed results of diversification efforts; main exports from Sri Lanka being spices, nuts, paperboards, ships & boats. More importantly, more than 60 percent of our exports to India were products under ISFTA. New Indian investments here can strengthen this positive trend further,” the Minister said.
Deputy Manager of Petronet LNG Ltd Manik Jhamb explained that the company has already submitted their proposal for Sri Lanka entry.
“Our proposal for Sri Lanka envisages an operation where we will supply clean LNG in comparison to what is seen in Sri Lankan market today. Investing in it is a win-win for Lankan government, consumers and for us since it is Green LNG and therefore a shift will occur to cleaner LNG in Sri Lanka,” Jhamb said.
“More importantly, we will revolutionize the supply system here-in that we will introduce pipe-borne LNG supply to households, thereby removing the need for use of cylinder based method. It’s a large scale project and we are ready for entry upon the go ahead,” he added.
Petronet LNG is a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, and involves India’s leading oil and natural gas industry players including GAIL (India) Limited, Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL). The authorized capital of Petronet is $240 million.
Minister Bathiudeen praising the Petronet LNG for its initiatives in Sri Lanka said the company’s efforts can strengthen local gas market and assured the delegation that his ministry will extend “our fullest support to you and other Indian investors partnering with us”
During the meeting, Minister Bathiudeen and CII’s Mutha also discussed other avenues of industrial cooperation and his previous interactions with the CII.
Courtesy: Colombopage
