The recent signing of the General Agreement on Economic, Trade, Investment, Scientific, Technical, Cultural, Youth and Sports Cooperation between the Assistant Foreign Minister of Saudi Arabia Dr. Nizar Obeid Madani and the Sri Lankan Minister of Foreign Affairs Tyronne Fernando in Colombo was a landmark event in bilateral relations between the two countries. Relations between the two countries have strengthened due to the efforts of the present ambassador, Ibrahim Sahib Ansar, whose tenure has been marked by frequent exchanges of high-level visits between the two countries.
Dr. Saleh Bin-Humaid, chairman of the Shoura Council visited the island along with a 30-member delegation while his counterpart Joseph Michael Perera, speaker of the Sri Lankan Parliament visited the Kingdom in August last year.
Besides regular ministerial visits during the Haj period, Ravi Karunanayake, minister of consumer affairs, Imtiaz Bakeer Markar, minister of posts and telecommunciations, Mahinda Samarasinghe, minister of labor and employment, Rauf Hakeem, minister of ports development and Islamic affairs and Mohamed Hanifa Mohamed, minister of western development have visited the Kingdom during the past two years.
“The general agreement has opened a new chapter in Saudi-Lanka relations,” said Ambassador Ibrahim Sahib Ansar.
He added that the accord would pave the way for Sri Lankan investors to come to the Kingdom and for Saudi investors to seek opportunities in Sri Lanka since it safeguards the interests of investors from both countries.
The bilateral trade between the two countries is to the tune of SR400 million with the balance in favor of the Kingdom. The island’s exports to the Kingdom stood at $29.5 million while its imports from the Kingdom were estimated at $152 million. Saudi exports to Sri Lanka include crude oil, urea, platinum, copper wire, paper board and glass.
Sri Lankan exports to the Kingdom are tea, garments, coir, fiber, fruits and vegetables, cut-flowers, leather goods and porcelain products.
Potentially lucrative ventures for Saudi investors in Sri Lanka include projects such as power generation, construction of sea ports, telecommunications, water services, areas in agriculture and food processing besides construction of infrastructure facilities such as houses and warehouses.
Sri Lanka opened its mission in Jeddah in 1984 with the Kingdom reciprocating with a mission in Colombo a decade later. Recently, the Saudi mission was upgraded to ambassadorial level with Mohamed Mahmud Al-Ali as first Saudi ambassador in Colombo.
Saudi Arabia is home to 350,000 Sri Lankans. The Sri Lanka Bureau of Foreign Employment (SLBFE), an organization under the Ministry of Labor, coordinates the deployment of Sri Lankan workers to various parts of the globe, including the Kingdom. Lankan workers can fit into any work environment and quickly learn new work techniques.
The Saudi Fund for Development (SFD) has been instrumental in financing several projects in the island. The recent construction of a neuro-trauma unit in the Colombo National Hospital and a bridge in Kinniya were mainly funded by SFD.
In the early 1980s the Kingdom gave financial assistance to Sri Lanka for various projects.
In 1981, SR99.9 million in credit was extended by the Kingdom for the second stage of the water supply and sewage project and another SR48.1 million for the Mahaweli Ganga Development project system B. In 1984 the Kingdom provided SR85 million for the Mahaweli Ganga Development Project system B left bank.
In order to open new trading opportunities for businessmen in all parts of the globe, including Saudi Arabia, Sri Lanka has also opened an online trading platform.
Sri Lanka’s Export Development Board (EDB) which is at the forefront of developing the island’s products and services has launched a new website. www.srilankabusiness.com is the portal for leveraging the internet for showcasing the country’s products and services in the world market.
The Board of Investment (BOI) headquartered in Colombo offers a wide range of incentives for foreign investors.
With the restoration of peace in the island, Sri Lanka has regained its position as a popular tourist destination.
From the earliest times it has been a land of endless attractions for visitors from all parts of the world. UNESCO has designated five sites in Sri Lanka as World Heritage Sites.
The Sri Lanka Tourist Board has reported a 27 percent increase in tourist arrivals and more than 500,000 tourists visited the island in 2003.
Sri Lankan Airlines provides convenient connections to Indian cities and South Eastern destinations. Saudi Arabian Airlines also has four direct flights to Colombo as does Sri Lankan Airlines.
Attractive tour packages are available for tourists and businessmen. Foreign airlines such as Emirates, Gulf Air and Royal Jordanian Airlines fly to Colombo and offer stopovers.
The Sri Lankan Expatriates Society (SLES) in the capital functions under the umbrella of the Riyadh mission.
It runs a free medical clinic besides funding deserving projects back at home.
It donated medical equipment to Sri Lankan hospitals. Last October, the society built 100 houses for flood victims in central parts of the island and also donated medical equipment to the Jaffna Hospital in the north of the island.
Similar Sri Lankan service-oriented organizations are also found in Jeddah, Dammam, Madina and Taif.
Two community schools in Riyadh and Jeddah cater to the educational needs of Sri Lankans.