To facilitate Foreign Direct Investment (FDI), Sri Lanka launched last week an innovative online one-stop shop to help investors obtain all official approvals. To mark the occasion, this blog series explores different aspects of FDI in Sri Lanka. Part 1 put forth 5 Reasons Why Sri Lanka Needs FDI. Part 3 will relate how the World Bank is helping to improve Sri Lanka’s enabling environment for FDI.
But it was not always the case.
. Others including Marubeni, Sony, Sanyo, Bank of Tokyo and Chase Manhattan Bank, had investments in Sri Lanka in the pipeline in the early 1980s.
All this changed when the war convulsed the country and derailed its growth. Companies left and took their foreign direct investments (FDI) with them.
In 2017, Foreign Direct Investment (FDI) into Sri Lanka grew to over $1,710 billion including foreign loans received by companies registered with the BOI, more than doubling from the $801 million achieved the previous year.
د ۲۰۱۷ کال په مې مياشت کې نړیوال بانک په افغانستان د خپلو فعاليتونو د بيا پيل ۱۵ مه کليزه ونمانځله. دا په داسې حال کې ده چې د دغو ۱۵ کلو په اوږدو کې نړیوال بانک افغان دولت ته اړينې مرستې برابرې کړي او دولت يې افغانانو ته د عامه خدمتونو رسولو جوګه کړی. په دې بهير کې مو له دولت سره په ګډه د روغتيا، پوهنې او زېربناوو په برخو کې ګڼې شمېرې او معلومات راټول کړي.
سره له دې چې په بېلابېلو سکتورونو کې معلومات په خوره وره او ګډه وډه بڼه په عام ډول د لاسرسي وړ دي، خو دا معلومات لا دومره نه دي چې له افغانانو او پراختيايي ملګرو سره د پروژو په طرحه او پاليسي جوړولو کې، چې کليدي ونډه لري، مرسته وکړي. د بېلګي په ډول: موږ په داسې حال کې چې د واکسينو د تطبيق او د نویو زېږېدلو کوچنیانو شمېرې لرو، د هغو سړکونو په اړه چې صحي مرکزونو ته ورغلي معلومات نه لرو. همدا راز، موږ ښايي په ښوونځيو کې د زده کوونکو د حاضرۍ او د هغو زده کوونکو چې په ازموينو کې کاميابېږي د شمېرو په اړه معلومات ولرو، خو په دې اړه چې زده کوونکي په څومره وخت کې ښوونځي ته رسېږي، کافي معلومات نلرو.
دا بېلګې روښانوي چې څنګه دقیق لومړني معلومات او شمېرې را سره د صحي مرکزونو او خدماتو په غځولو کې مرسته کوي او يا څنګه ښوونې ته لاسرسی پياوړی کولای شو. بې له شکه چې لومړنیو معلوماتو او شمېرو ته څرګنده اړتيا ليدل کېږي، چې په رڼا کې يې اړوند چارواکي په هر پاټکي کې له دې ګټه واخلي.
بانک جهانی در ماه می سال ۲۰۱۷، از پانزدهمین سالگرد از سرگیری فعالیت هایش در افغانستان تجليل نمود. این در حالیست که طی این ۱۵ سال گذشته بانک جهانی حمایت لازم را برای دولت افغانستان غرض فراهم آوری خدمات عامه به افغانها فراهم نموده است. در اين فرایند، مشترکاً با دولت افغانستان ما توانستیم معلومات و آمار بسیاری را در بخش های صحت، معارف و هم چنان زیربنا ها جمع آوری نمايیم.
با آنکه معلومات در عرصه های مختلف بصورت پراگنده و غیر هماهنگ در دسترس عام قرار دارد اما این معلومات هنوز هم کافی نیست تا افغانها و همکاران انکشافی را در طرح ریزی برنامه ها و تدوین پاليسی ها که نقش کلیدی دارند، کمک نماید. به طور مثال ما در حاليکه آمار تطبيق واکسين و اطفال نوزاد را داريم، اما در مورد سرک ها ییکه به مراکز صحی منتهی میشوند آگاهی نداریم. به همین ترتیب، ممکن است در رابطه به میزان حاضری شاگردان در مکاتب و شاگردانيکه در امتحانات کامياب ميشوند بدانیم، اما در مورد اینکه آیا چه زمانی را در برمیگیرد، تا شاگردان به مکتب برسند، معلومات کافی در دست نداريم.
این مثال ها نشان دهنده این است که چگونه معلومات و آمار اساسی و دقیق ميتواند در گسترش پلانگذاری تسهيلات و خدمات صحی کمک نماید و يا هم چگونه میتوانیم با دسترسی به این آمار دسترسی معارف را تقويت بخشیم. در نهایت امر، . بدون شک، دسترسی به آمار اساسی و دقیق یک نياز شمرده می شود، تا در روشنی آن مسوولین ذیربط در تمام سطوح از آن استفاده نمایند.
In May 2017, the World Bank celebrated its 15 years of reengagement in Afghanistan.
However, . As it happens, that information is important to design projects and inform policies.
Case in point: while we may have data on vaccines given or babies born, we don’t know much about the roads that lead to the clinic. Similarly, we may get data on school attendance and passing rates of students, but we don’t know how long it takes for students to reach their schools.
These examples highlight how . After all, each mapped kilometer of a road can help us understand how long Afghan children must walk to get to school or how long it takes sick Afghans to reach a hospital.
Without question, there is a clear need for better foundation data to inform decision making at all levels.
Remote Rural Communities Development Project (RRCDP), he and his family have benefitted from the construction of a new farm road and protection from landslides through RRCDP support – a project that promotes the increasing of agricultural productivity and development of communities’ access to markets, irrigation, agricultural technologies, and community infrastructure in 26 Gewogs (village groups) under six Dzongkhags (districts) in Bhutan: Chhukha, Dagana, Haa, Samtse, Trongsa, and Wanduephodrang.
Driving Prosperity through Access to Rural Roads
Coming to completion in May 2018, RRCDP has improved road access to markets to at least 11 project Chiwogs (hamlets) in Samtse and Trongsa Dzongkhags – building 22.9 kilometers of farm roads and benefitting about 299 households. With the construction of new farm roads, the most commonly marketed agricultural and livestock products amongst farmers in project areas have been cardamom, vegetables, butter, cheese, and citrus, and to a lesser extent, rice, potatoes, and eggs. Additionally, beneficiaries have also reported a significant reduction in the time of travel between their households and markets – up to 8 hours in some cases! The majority of the Bhutanese population live in remote rural areas – hours, sometimes days of walking from the nearest road. They walk their children through dense forests and rivers to reach schools and health clinics; they carry their agricultural and livestock products to nearby markets on their backs – an average load of 30kg. A horse carrying a 50kg load costs approximately Nu.5 per kilogram.
Now, with road accessibility, farmers use pick-up trucks at the cost of Nu.2 per kilogram. After a RRCDP farm road construction in Samtse, for example, four households bought pick-up trucks and ten individuals bought motorcycles – mainly benefitting the transport of cardamom. Better road accessibility through RRCDP have also fostered the construction of concrete flush toilets outside households and the construction of new concrete-built homes, as well as the expansion of irrigation schemes. Finally, road accessibility has also impacted social dynamics in rural areas benefitted by the project. 
The project has also supported beneficiaries in 88 Chiwogs with access to community and marketing infrastructure, such as power tiller tracks, power tiller machinery, and food bridges – with a total of 3,597 households benefitted. In Norgaygang Gewog, for example, with support from the project, the construction of 4 kilometers of power tiller track in 2016, has brought multiple benefits to the community, such as easier access to schools and healthcare in case of emergency.
Bhutan is a challenging environment in which to develop commercial agriculture. The country has limited areas for agriculture, and its geography and road conditions make logistics and market access costly.
Therefore, commercial agriculture is critical to increase productivity, which will help create jobs and access to more and better food. This can be achieved not only through focusing on high-value products and investing in traditional infrastructure such as irrigation, but also through using information and communication technology (ICT). Based in eastern Bhutan, Mountain Hazelnuts has developed innovative uses of ICT for its commercial agriculture operations.
Did you know that Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall?
Bicycles are the largest export of Bangladesh’s engineering sector, contributing about 12 percent of engineering exports.
This performance is in large part due to the high anti-dumping duty imposed by the EU against China.
Recently, the EU Parliament and the Council agreed on EU Commission’s proposal on a new methodology for calculating anti-dumping on imports from countries with significant market distortions or pervasive state influence on the economy.
This decision could mean that the 48.5 percent anti-dumping duty for Chinese bicycles may not end in 2018 as originally intended. China is disputing the EU’s dumping rules at the World Trade Organization.
As the global bicycle market is expected to grow to $34.9 billion by 2022, Bangladesh has an opportunity to diversify its exports beyond readymade garments. Presently, Bangladesh is the 2nd largest non-EU exporter of bicycles to the EU and the 8th largest exporter overall.
However, if the EU anti-dumping duty against China is reduced or lifted after 2018, Bangladesh’s price edge might be eroded.
Bangladeshi bicycle exporters estimate that without anti-dumping duties, Chinese bicycles could cost at least 10-20 percent less than Bangladeshi bicycles on European markets. And Chinese exporters can ship bicycles to the EU market with 35-50 percent shorter lead times.
So, how can Bangladeshi bicycles survive and grow?
Sri Lanka experienced strong growth at the end of its 26-year conflict. This was to be expected as post-war reconstruction tends to bring new hope and energy to a country.
And Sri Lanka has done well—5 percent growth is nothing to scoff at.
However, Sri Lanka needs to create an environment that fosters private-sector growth and creates more and better jobs. To that end, the country should address these 6 pressing challenges:
1. The easy economic wins are almost exhausted
For a long time, the public-sector has been pouring funds into everything from infrastructure to healthcare. Unfortunately, Sri Lanka’s public sector is facing serious budget constraints. The island’s tax to growth domestic product (GDP) ratio is one of the lowest in the world, falling from 24.2% in 1978 to 10.1% in 2014. Sri Lanka should look for more sustainable sources of growth. As in many other countries, the answer lies with the private sector.
2. Sri Lanka has isolated itself from global and regional value chains
Over the past decades, Sri Lanka has lost its trade competitiveness. As illustrated in the graph below, Sri Lanka outperformed Vietnam in the early 1990s on how much of its trade contributed to its growth domestic product. Vietnam has now overtaken Sri Lanka where trade has been harmed by high tariffs and para-tariffs and trade interventions on agriculture.
Sri Lanka dropped down by 14 notches to the 85th position out of 137 in the recent Global Competitiveness Index.
3. The system inhibits private sector growth
Sri Lanka’s private sector is ailing. Sri Lankan companies are entrepreneurial and the country’s young people are smart, inquisitive, and dynamic. Yet, this does not translate into a vibrant private sector. Instead, public enterprises are the ones carrying the whole weight of development in this country.
The question is, why is the private sector not shouldering its burden of growth?
From the chart above, you can see how difficult it is to set up and operate a business in Sri Lanka. From paying taxes to enforcing contracts to registering property, entrepreneurs have the deck stacked against them.
Trading across borders is particularly challenging for Sri Lankan businesses. Trade facilitation is inadequate to the point of stunting growth and linkages to regional value chains. The chart explains just why Sri Lanka is considered one of the hardest countries in the world to run a trading business. Compare it to Singapore–you could even import a live tiger there without a problem.
Deepening connectivity and economic linkages between India and Bangladesh will be critical for the success of India’s ‘Act East’ policy.
Here are five priority areas that have the potential to change the economy of Northeast India:
1. Transport Connectivity
After 1947, Northeast (NE) India has had to access the rest of India largely via the “Chicken’s Neck” near Siliguri, greatly increasing travel times. Traders travel 1600 km from Agartala (Tripura) to Kolkata (West Bengal) via Siliguri to access Kolkata port. Instead, they can travel less than 600 kms to reach the same destination via Bangladesh, or even better, travel only 200 km to access the nearby port of Chittagong in Bangladesh.
This is set to change as close cooperation between Bangladesh and India (including various ongoing initiatives such as the transshipment of Indian goods through Bangladesh’s Ashuganj port to Northeast India, expanding of rail links within Northeast India and between the two countries, the BBIN Motor Vehicles Agreement) can dramatically reduce the cost of transport between Northeast India and the rest of India.
The resultant decline in prices of goods and services can have a strong impact on consumer welfare and poverty reduction in the Northeast. Such cooperation also opens up several additional possibilities of linking India with ASEAN via Myanmar.
Moving forward, expanding direct connectivity between NE India and the rest of India via Bangladesh, while giving Bangladesh similar access to Nepal and Bhutan via India, is critical.
2. Digital Connectivity
Broadband connectivity of 10 gbps is now being provided from Bangladesh’s Cox’s Bazar to Tripura and beyond, to help improve the speed and reliability of internet access in NE India. Bangladesh has the capacity to provide more.
Many Sri Lankans understand the potential benefits of lowering trade costs and making their country more competitive in the global economy. The majority, however, fear increased competition, the unfair advantage of the private sector from abroad and limited skills and innovation to compete.
Yet, Sri Lanka’s aspirations cannot be realized in the current status quo.
While changes in trade policies and regulations will undeniably improve the lives of most citizens, I’m mindful that some are likely to lose. However, many potential gainers of the reforms who are currently opposed to them are unaware of their benefits.
Implementing smart reforms means that government funds will be used more effectively for the people, improve access to better healthcare, education, basic infrastructure and provide Sri Lankans with opportunities to get more and better jobs. Let me focus on a few reforms that I believe are critical for the country. First, Sri Lanka needs to seek growth opportunities and foreign investment beyond its borders.
First, Sri Lanka needs to seek growth opportunities and foreign investment beyond its borders.
Experience shows that no country in the world today has been able to create opportunities for its population entirely within its own geographic boundaries. To succeed in this open environment, Sri Lanka will need to improve its skills base, better understand supply and demand chains as well as produce higher quality goods and services
Experience shows that no country in the world today has been able to create opportunities for its population entirely within its own geographic boundaries. To succeed in this open environment, Sri Lanka will need to improve its skills base, better understand supply and demand chains as well as produce higher quality goods and services.
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