RIYADH, 28 August 2003 — A memorandum of understanding has been signed by Otaishan Group of Saudi Arabia and the Urban Development Authority of Sri Lanka to establish a world-class amusement park in Sri Lanka.
The Otaishan Group also plans to set up trade and investment centers in Riyadh and Colombo in order to boost the two countries’ commercial links.
“Otaishan Group plans to set up two trade corridors called ‘Saudi-Sri Lanka Trade, Investment and Services Center’ with a range of in-house facilities to promote economic and tourism relations,” said Sri Lankan Ambassador Ibrahim Sahib Ansar.
Ansar said that the trade centers with a mandate to conduct market surveys and sales promotions while functioning as a liaison office on behalf of Saudi and Sri Lankan businessmen, would be established in phases at a cost of $20 million.
The Saudi-Sri Lankan trade centers will play a major role in the export sector. Sri Lankan tea has a 75 percent share of the Saudi tea bag market, said the diplomat, who added that the trade centers would also arrange meetings with potential clients, provide logistic support to businessmen and exchange business information. The centers will employ merchandisers and salesmen.
As for the amusement park, Ansar said that the plan was to clean Beira Lake in Sri Lanka and develop the adjoining areas. “There is also the possibility that the Otaishan Group will set up a huge environment-friendly tourism village in the country,” he said.
He said that Otaishan’s total investment in tourism will range from $10 million to $400 million in different phases.
“The tourism village to be set up with Saudi investment will cater to the needs of people traveling from Saudi Arabia and other Middle East countries, including Iran, to Sri Lanka,” said an Otaishan Group report which gives a brief for the company’s plans and projects. There are several other tourist locations in Sri Lanka which can also be developed as tourist attractions.
Ansar said that an umbrella draft agreement for economic and scientific cooperation had been finalized between Saudi Arabia and Sri Lanka. governments. The new accord, “General Agreement on Economic, Trade, Investment, Scientific, Technical, Cultural, Youth and Sports Cooperation,” will be signed later this year.
The diplomat also mentioned a project to build a separate Islamic affairs complex in Colombo for which Sri Lanka has sought funds from the Kingdom. A plot of land, he said, had already been made available to build a department of Islamic affairs which would be entrusted with looking after the interests of Sri Lanka’s Muslim minorities.
Sri Lanka has also benefited from soft loan facilities granted by Saudi Arabia at various times. Ansar said that the Saudi Fund for Development had extended a SR40 million credit facility for a major bridge project and a SR45 million soft loan for the Colombo National Hospital project in addition to a loan of SR300 million in various phases for the Mahawali Ganga Project. These are in addition to other aid and assistance extended by the Kingdom to Colombo.
