• International Investments • Information Technology • Why ? • Gems & Jewellery • Sri Lankan Fashion • Tourism 2008

A special publication by the High Commission of Sri Lanka in Singapore

Publisher Sun Media Pte Ltd Editor-in-chief Nomita Dhar Assistant Editor Tan Kong Wee Editorial Assistants 5 28 Nandini Narayanan, Kester Tay High Commission Editorial Board Bandula Somasiri, A.C.M. Ibrahim, Savitiri Panabokke Advertising & Marketing Chan Siew Khim, Roshni Sudhir, See Hui Min Dorothy Design Dilipkumar Kanagaraj 28 27 Photographer Michael Ozaki Photo Contributions High Commission of Sri Lanka, www.colombopage.com, Mount Lavinia Hotel, Taj Samudra Hotel, Galle Face Hotel Printing Image office 7 22 Editorial Office Sun Media Pte Ltd 20, Kramat Lane, #01-02 United House, 3 Editor’s Note Singapore 228773, Tel: (65) 6735 2972 / 1907 / 2986 4 Celebration: H.E. Fax: (65) 6735 3114 President of Sri Lanka Email: [email protected] 5 Foreign Policy: President of Sri Lanka with URL: www.sunmediaonline.com World Leaders MICA (P) 204/01/2008 7 Celebration: Making Strides in Diplomacy This commemorative is published under the advocacy of H.E. Shehan Ratnavale, High Commissioner of 8 Interview with the High Commissioner: Sri Lanka in Singapore Sri Lanka at 60, Growing and on the move © Copyrights 2008 by Sun Media Pte Ltd. The opinions, pronouncements or views expressed or 11 Visit: Singapore - based envoys implied in this publication are those of contributions or authors. They do not necessarily reflect the official holiday in Lanka stance of the Sri Lankan authorities nor their agents and representatives. The aim of this publication is to 13 Fact Sheet: Sri Lanka at a glance guide and provide general information. While every effort has been made to ensure the accuracy of all 14 International Investments: World looking in information contained, the publisher cannot be liable for loss incurred in any way whatsoever by a company 16 Why Sri Lanka?: Dollars & sense or a person relying on this information. 19 Sri Lankan Fashion: Fabric of modernity For further enquiries, contact: High Commission of Sri Lanka, 20 IT: Gaining Momentum 03-07/12 Goldhill Square, 22 Tourism: Back in Time 51 Newton Road, Singapore 308900 Tel: (65) 6254 4502 25 Gems & Jewellery: All that sparkles

Fax: (65) 6250 7201 CONTENTS 27 Photo Feature: Snap Shots URL: www.lanka.com.sg

Editor’s Note

Sri Lanka, at 60 years of independence, celebrates the country’s progress and brings a message of hope for the future. It is our honour to present to you this commemorative issue of Sri Lanka Calling. As its title suggests, this publication captures Sri Lanka’s invitation to investors, tourists and entrepreneurs alike to leverage on its potential and create opportunities for mutual benefit.

ri Lanka’s features are well-aligned with investor’s trip to Sri Lanka. We bring you a report on their experiences needs. It boasts a strategic location between the Indian of the tourist sights and cuisine of the country, and how this S sub-continent and South Asia, a conducive investment changed their perceptions. Said US Ambassador to Singapore, climate, a competitive labour market, solid infrastructure and Patricia Herbold: “It is true, we hear only negative stories a range of incentives for investors offered by the government about Sri Lanka these days, but I must say, after coming and the Board of Investment of Sri Lanka (BOI). In our here, I realized there are more positive stories than negative feature “Dollars & Sense”, we bring you a detailed look at stories on Sri Lanka.” some of these factors. In terms of cultural exchange, it was all glam and chic when

Further, economic health of the nation has been stable and has Sri Lankan fashion designers displayed their collection here in shown a steady growth of about seven per cent on an average. Singapore recently. We bring you, together with a profile on Sri Various sectors that have excelled and shown to provide Lanka’s exciting fashion scene, glimpses of the show and other events that were organised by the Mission. vast opportunities include not only traditional industries of manufacturing, textiles, chemicals but also emerging areas like Despite the current security situation, business is as usual in Information Technology. As the world demand for Information Sri Lanka. The fact that its economy has enjoyed steady growth Technology products escalates, Sri Lanka’s Information in the past despite obstacles shows the country’s strong Technology (IT) sector, developing at a steady, impressive rate, immunity and resilience. This, coupled with the country’s many offers cost effective options for the international market. strengths and investor-friendly features, makes doing business with Sri Lanka a wise choice. And with 44 flights now between Indeed, Sri Lanka has established a global reputation as an Singapore and Sri Lanka, the time is now for businessmen and investment hub. Businesses around the world have been travellers alike to visit the beautiful island of Sri Lanka. steadily increasing their presence in the Island and reaping benefits in the recent years. We bring you the experience of Sri Lanka Calling would like to take this opportunity to some investors in the feature, “World Looking In”. wish all Sri Lankans in Singapore a Happy National Day and a pleasant time reading! Besides these economic interactions, Sri Lanka has also sought to warm up international relations on other fronts. In January Nomita Dhar this year, a group of Singapore-based envoys went on a holiday Editor-in-Chief

Sri Lanka Calling 3 Celebration CELEBRATING WITH THE NATION 60 YEARS OF INDEPENDENCE

H.E. Mahinda Rajapaksa President of Sri Lanka

4 Sri Lanka Calling Foreign Policy

H.E. Mahinda Rajapaksa, President of Sri Lanka with World Leaders

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Pictures: www.colombopage.com Pictures: 14 15 16 17

1. Sri Lankan President Mahinda Rajapaksa 7. President Mahinda Rajapaksa meets Emperor 13. The President during the World Economic had a friendly discussion with United States of Japan Komatsu Akihitho at the Imperial palace Forum in Jordan, with Afghanistan President President George W. Bush at the United Nations in Tokyo. Hamid Karzai. Headquarters. 8. President Mahinda Rajapaksa meets Prime 14. President Mahinda Rajapaksa and his 2. President Mahinda Rajapaksa met British Minister of Japan Yasuo Fukuda at the Prime delegation meets Italian President Giorgio Prime Minister Tony Blair at Buckinghamshire and Minister’s Office in Tokyo. Napolitano at the Quirinal Palace. discussed the current situation in Sri Lanka. 9. President Mahinda Rajapaksa meets with the 15. President Mahinda Rajapaksa visits the 3. President Mahinda Rajapaksa and Chinese Malaysian Prime Minister Datuk Seri Abdullah Maldives, and meets Maldivian President President Hu Jintao meet at the Great Hall. Ahmad Badawi at the Commonwealth Heads of Maumoon Abdul Gayoom. Government Meeting. 4. President Mahinda Rajapaksa meets Deputy 16. The President with Pakistan President Pervez Prime Minister of Singapore Wong Kan Seng 10. President being welcomed by Sheikh Sabah Musharraf, during his Pakistan Visit. during the Commonwealth meeting. IV Al-Ahmad Al-Jaber Al-Sabah, the Emir of Kuwait, at the Kuwait International Airport. 17. The President greets Mr. Raúl Castro Ruz, 5. President Mahinda Rajapaksa meets Acting President of Cuba, at the Non-Aligned Dr. Manmohan Singh, Prime Minister of India, at 11. President Mahinda Rajapaksa attended the Movement (NAM) Summit in Havana. Hyderabad House in New Delhi. World Economic Forum in Jordan and held talks with King Abdullah II bin Al Hussein of Jordan. 6. President Mahinda Rajapaksa meets world leaders at the Commonwealth meeting. The 12. President Mahinda Rajapaksa with Iranian President had friendly discussions with President Mahmoud Ahmadinejad. Ms. Helen Clark, Prime Minister of New Zealand.

Sri Lanka Calling 5

Celebration

MAKING STRIDES IN DIPLOMACY

Hon. Rohitha Bogollagama Foreign Minister of Sri Lanka

Hon. Rohitha Bogollagama with World Leaders

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1. Foreign Minister Bogollagama meeting 4. Foreign Minister Bogollagama meeting the 7. Foreign Minister Bogollagama with Libyan Secretary of State USA, H.E. Dr. Condoleezza Rice, President of the People’s Republic of China, Prime Minister Dr. Al Baghdadi Ali Al Mahmudi in Washington, 15 March 2007. H.E. Hu Jintao. Tripoli, Libya, 14 August, 2007.

2. Foreign Minister Bogollagama meeting the 5. Foreign Minister Bogollagama calling on the 8. Foreign Minister Bogollagama meeting with Minister of Foreign Affairs of France, Indian Prime Minister Dr. Manmohan Singh, in the Indian Union Minister of External Affairs, Shri Bernard Kouchner. New Delhi, 31 January 2007. Pranab Mukherjee, in New Delhi, 19 March 2007.

3. Being received by His Holiness Pope Benedic 6. Hon. Rohitha Bogollagama, Minister of XVI after His Excellency President Mahinda Foreign Affairs, meeting Assistant Under Secretary Rajapaksha’s Audience with the Pope – Panel of State USA, H.E. Richard Boucher, during the Library, the Vatican, 20 April 2007. SAARC Summit in New Delhi, on 3 March 2007.

Sri Lanka Calling 7 Interview with the High Commissioner Sri Lanka at 60 Growing and On The Move

Singaporeans may also take pride in their involvement in As Sri Lanka celebrates 60 Sri Lanka’s development. Singapores cumilative investment years of independence, stands at approximately US$600 million. There are many High Commissioner of investments in fields such as of property development that have attained iconic status. I must also emphasise Sri Lanka to Singapore, the generosity with which Singaporeans reacted to the H.E. Shehan Ratnavale, emergency relief and long-term reconstruction in in conversation with Nomita Dhar, the aftermath of the tsunami disaster. This 60th anniversary is indeed a time to rejoice in our strong shares his views. and developing relationships.

Sri Lanka’s development has been impeded by conflict. What efforts are being made to resolve such issues? s Sri Lanka celebrates its 60 years of independence, what is your national day The government is committed to a negotiated political solution A message to Sri Lankans in Singapore and to the problem and has clearly stated that it will not tolerate friends of Sri Lanka? the menace of terrorism. Considerable success in combating terrorism has been achieved in recent times. Contextually I Undoubtedly, the nation has faced many challenges in its 60 would like to highlight the clearing of the Eastern province of years of independence. But there has been solid progress and Sri Lanka and the quick follow up in terms of the Nagenahira achievement. Today, Sri Lanka has the highest quality of life Navodaya (Eastern revival) scheme, which has addressed the in South Asia. As indicated in the human development indices, humanitarian, educational and development need of people our literacy rate of 92 per cent is comparable with most in this area. As you know, His Excellency President Mahinda developed nations, and our per capita income is approaching Rajapaksa has just received the proposals of the all party a middle income status. Also, the economy has shown resilience political representation committee and we are optimistic that in the face of adversity, attaining a growth of 7.4 per cent in this will provide a foundation for a political solution. 2006 and is likely to attain a similar figure in 2007.

How does the current conflict affect Sri Lanka’s For Sri Lankans living in Singapore and our Singaporean business potential and ability to attract international friends, it is heartening to recollect each other’s involvement investment? in development. In view of this close relationship between the two countries, this occasion is a matter of celebration There has been a consistent growth in Sri Lanka’s economy for all. I cannot forget that some of the founding fathers of in the last few years. We have had across-the-board Singapore were of Sri Lankan origin. Sri Lanka has also been growth in textiles, chemicals, rubber and plastics and even the source of many of Singapore’s distinguished politicians, in agriculture. Prudent investors from all over the world businessmen, ambassadors, civil servants, etc. In fact, the have realised that the conflict has been largely centred Singapore Supreme court at one time had so many judges of Sri around the north-eastern parts, and it is business as Lankan origin that it was nicknamed “the Colombo court”. usual in the other parts.

8 Sri Lanka Calling I may put the conflict in perspective, by saying that my host The signing of the Memorandum of Understanding (MOU) by country, Singapore, a wonderful global city, is 699.4 square Sri Lanka and Pakistan has also allowed trade between the kilometres. In comparison, the island-nation of Sri Lanka is two countries to flourish. In May 2007, the High Commissioner 65,000 square kilometres. I point out to potential investors for Pakistan in Sri Lanka has stated that trade between that the area is sufficient to create many cities with the Sri Lanka and Pakistan is growing and would reach the dynamism of Singapore, while avoiding the conflict areas. USD$ 1 billion mark in the next five years. As far as terrorism is concerned, in this age of globalisation, Additionally, Sri Lanka is the only country in South Asia to it can manifest itself in any part of the world, so my country be awarded the Generalized System of Preferences Plus is as safe as any other place. (GSP+) status, providing duty free access to the EU on The fact that such sound economic growth has been 7,200 product line. achieved despite an intensified security situation in 2006 These factors, coupled with its location between the underlines that much more will be achieved once the dynamic economies of South East Asia and the fast-growing situation is stabilised. economies of the Middle East, make Sri Lanka an excellent I would like to use this opportunity to invite more businessmen investment, trading, port and aviation hub. As such I urge to leverage on many of Sri Lanka’s strengths and reap benefits Singaporeans to take into account this strategic positioning in the years to come. in their investment decisions.

In light of Sri Lanka’s strategic location between Could you update us on the cultural, political, economic the Indian subcontinent and South Asia, and the initiatives that have taken place between Singapore exponential growth of India in the world marketplace, and Sri Lanka during past year? how does Sri Lanka plan to leverage on this? And how There have been numerous interactions in the past. If I can investors use the Sri Lanka route to get into the were to focus on last year, I would begin with the multiple emerging markets of South Asia? VIP visits to Singapore. These include the visit of Prime Sri Lanka has free trade agreements (FTAs) with India and Minister Hon. in January, the visit of Pakistan. Hence it offers opportunities for investors to Foreign Minister Rohitha Bogollagama for multilateral and set up in Sri Lanka an access to a huge market of over a bilateral meetings, as well as the visit of Minister of Health billion people. Furthermore, the FTA with India is soon to Nimal Siripala Desilva. We have also participated in events be upgraded to a Comprehensive Economic Cooperation such as the International Maritime Defence Exhibition Agreement (CECA). Already, trade between the two countries (IMDEX) Asia. In terms of development cooperation, senior has multiplied from USD$ 500 million in 2000 to about officials from the education industry came here on a fact USD$ 2.5 billion in 2007. Sri Lanka is india’s largest trading finding mission last year. partner in South Asia. Further, under the Singapore Cooperation Programme Training India is also the fourth largest investor in Sri Lanka with an Awards Scheme (SCPTA), approximately 100 people were investment of USD$ 400-500 million. Over 50 per cent of trained in areas such as aviation, public administration, Indian joint ventures and wholly owned subsidiaries in the environment, healthcare, information and communication, South Asian Association for Regional Cooperation (SAARC) etc. And under the MOU on tsunami reconstruction, region are located in Sri Lanka. And of the total equity invested around 60 Sri Lankans were trained in pedagogy skills by Indian companies in regional joint ventures, 54 per cent are and health care. There were also initiatives with cultural located in Sri Lanka. dimensions such as the screening of “God King” at the Asian

Sri Lanka Calling 9 Civilisations Museum and a fashion and dance show. Aditionally, there was a veneration and exposition ceremony for the sacred hair relic of Lord Buddha.

Business wise, Sri Lanka was a country partner at the Singapore International Jewellery Show, and was represented by a large delegation. Minister of Enterprise Development Hon. (Dr.) Sarath Amunugama headed the mission and was also a Guest of Honour at the show. In addition a joint networking event was held for Singaporean and Sri Lankan companies High Commissioner with members of the diplomatic corps to facilitate business and partnerships in software and IT enabled services. Last year also saw a new Recently, I was honoured to organise and head a Singapore- Sri Lankan international airline, Mihin Lanka, commence its based envoys’ visit to Sri Lanka. The feedback was very inaugural flight to Singapore, increasing the tally of flights positive and many expressed the desire to visit again. With between Singapore and Sri Lanka to 44. This is a significant all these exchanges that have taken place, I urge Singaporean development, as it further boosts interactions between the businessmen and travellers to visit Sri Lanka and make us two countries. partners in their growth.

10 Sri Lanka Calling Visit

Singapore-based envoys holiday in Lanka

“It is true, we hear only negative stories about Sri Lanka these days, but I must say, after coming here, I realised there are more positive stories than negative stories on Sri Lanka,” said Patricia Herbold, US Ambassador to Singapore. Pictures: Kristin Paulson Pictures:

ine VIPs from Singapore arrived to holiday in Sri Ratnavale. The tour to Sri Lanka by these diplomats, their Lanka, a Land Like No Other, in January. The VIPs spouses and other dignitaries was made possible by the High N arrived in Sri Lanka only to be pleasantly surprised Commissioner for Sri Lanka, who initiated the tour and made by the country’s rich cultural diversity, and left hoping to visit it a dream-come-true trip for many of them. “This is my first again very soon. trip to Sri Lanka and I have not been to India or Pakistan, which are bigger countries,” said the Ambassador for Russia, The nine-member group included four ambassadors to Andrey Rozhkov, who was accompanied by his wife, Mrs Singapore: Patricia Herbold, Ambassador for USA; Andrey Elina Rozhkov. The SLTPB met the VIPs at the Hilton after Rozhakov, Ambassador for Russia; Jose Arturo Montoya Stuva, their arrival from Kandy on January 22, 2008. Ambassador for Peru; Elina M. Iwatake, Head of Commercial, BT Global Services, and Kristin Paulson, United Technologies “We were awestruck when we visited the Temple of the International Operations. Their visit was facilitated by the Tooth Relic. We had not seen a Buddhist Shrine or a Dagaba, Sri Lanka Tourism Promotion Bureau (SLTPB), and organised and most of what we saw here were for the first time in our by Sri Lanka’s High Commissioner for Singapore, Shehan lives,” the Ambassador said. Most of the visitors felt that

Sri Lanka Calling 11 the visit to Dalada Maligawa’s inner-most sanctum was a great privilege and they were thrilled to receive blessings at the sacred place.

Referring to the travel advisory, Ambassidor Rozhkov said, “Yes, we know that the Russians are told about a travel advisory, but I saw many foreigners, and Russians in particular, all having a whale of a time.”

“It’s true that the country has some problems but nobody can stop foreigners coming to Sri Lanka, and here we are. Nobody stopped us from coming. I will be coming again because five days just flew in a jiffy and there is much to only avoid travelling to those places and be in the safe areas, see,” he continued. which we did, and enjoyed the tour relaxingly,” said Iwatake, who was accompanied by her mother. The contingent had been shopping, and was happy to meet and interact with many Sri Lankans, who are very warm The US Ambassador to Singapore, Patricia Herbold said that and energetic people, as the Ambassador pointed out. “We most of the places she had visited during the tour were not commonly heard of. “I was taken by surprise when I heard, heard that Sri Lanka was like Singapore in the ‘60s and Sri for the first time, of the elephant orphanage at Pinnawela Lankans should take initiatives to develop the roads, and and the Temple of the Tooth Relic,” she exclaimed. be advanced in technology as well,” he added. The Russian Ambassador and his wife, who are proud parents of two girls Talking about the present situation in the country, she said, and grandparents of two girls, love spicy food, especially hot “It is true, we hear only negative stories about Sri Lanka these curries. “We are going back with beautiful memories of Sri days, but I must say, after coming here, I realised there are Lanka, not missing the tea and spices in our baggage.” more positive stories than negative stories on Sri Lanka.”

The Peruvian Ambassador, Jose Arturo Montoya Stuva, and “We also thought twice before coming here but we were Mrs. Montoya, were very excited about their trip too. The given the proper picture and advise before we came. It was Ambassador said, “The Temple of the Tooth Relic is a really great to visit Galle Fort, the ramparts, Kandy, Sigiriya, turtle beautiful place to visit. We are happy to have made the hatchery, to name a few, and certainly, I would like to come choice of coming here. It was marvellous to see the Sigiriya to Sri Lanka again,” she added. Rock and the ruins on top. We wanted to come here a long time back but finally we made it.” Her only advice to people who want to travel to Sri Lanka is: “Get the proper information before planning the trip, The Ambassador and his wife are parents of twins, a girl and make your own decision and don’t just take negative a boy, and have plans to visit Sri Lanka with them, as a family. stories into account.” “We are looking forward to that day,” they said. The High Commissioner for Sri Lanka, Shehan Ratnavale, Elina M. Iwatake, Head of Commercial, BT Global Services who had been busy making all the arrangements for the had this to say: “Like the others in the team, I was moved contingent he brought to his Motherland, said, “I am happy when I was blessed and tied the Pirith Noola at Dalada that everything went as planned. I feel privileged to have Maligawa. We heard of the travel advisory, but we were told brought them here on January 18, amidst security concerns the problems are in the North and East. Obviously, we had to and have them experience my Motherland.”

12 Sri Lanka Calling Fact sheet Sri Lanka at a Glance

Capital: Sri Jayewardenepura Language: Sinhala is the language spoken by the majority of the population. The Constitution designates Commercial Centre: Colombo Sinhala and Tamil as the official languages, and English as National Day: 4 February the `link’ language. English is widely spoken, particularly Location: Sri Lanka is off the Southern tip of India and is in the mercantile sector. separated from India by the Palk Straits. Climate: Average Temperature Maximum Minimum Latitude: 5o 55’ to 9o 50’ N Colombo 30.6o C (87.3o F) 24.1o C(75.4o F) Longitude: 79o 42’ to 81o 52’E Kandy 29.0o C (84.2o F) 20.2o C(68.4o F) Area: 65,610 sq.km. (25,332 sq.miles) Nuwara Eliya 20.2o C (68.4o F) 11.5o C (52.7o F)

Government: The Executive consists of the President Economic Information: Sri Lanka has recorded a 6.4 of the Democratic Socialist Republic who is the Head per cent economic growth in the second quarter 2007. of State and the Government and the Commander-in- The GDP Growth Rate was 6.4 per cent for the second Chief of the armed forces, elected directly by the people quarter of 2007. at periodical elections. The President is responsible The industry sector grew by 7.5 per cent, and the total to the Parliament and is a member and the Head of the Cabinet of Ministers. services sector grew by 6.5 per cent for the second quarter of 2007. Total agriculture sector has shown 3.5 per cent Legislature (Parliament), which exercises the sovereignty growth for the reference period. of the people, consists of 225 representatives from among whom the President appoints as Prime Minister Colombo Consumers’ Price Index (CCPI) and Sri Lanka the Member of Parliament who in his/her opinion is most Consumers’ Price Index (SLCPI) have shown quarterly likely to command the confidence of Parliament. average price increases of 14.3 and 16.2 per cent,

The Chief Justice, who is appointed by the President, respectively, for this quarter as against that of 13.4 and heads the Judiciary. 8.1 for same quarter in 2006.

Sri Lanka Calling 13 International Investments

World looking in

Investors from all around the world have been increasingly attracted to the island of Sri Lanka. Foreign direct investment (FDI) inflows in the country reached new heights in 2006 at US$ 603 million, up from US$ 272 million in 2005, according to the official sources.

oday, besides long-standing investors from countries out to Sri Lanka, international companies have grown and such as the US, UK, India and Japan, investors prospered. Coats Viyella, the largest textile company in the T from other countries such as Sweden, Hong Kong, UK, set up its first factory in Sri Lanka more than 20 years ago. Malaysia and Singapore have also made the plunge. The Today it has 20 factories employing 500, and enjoys an annual first half of 2007 saw Malaysia as the largest source of turnover of GBP 10 million. “Such unprecedented success foreign direct investments, at US$ 144 million. In the same is due to the Sri Lankan government’s excellent incentives period, Hong Kong investments recorded US$ 19.32 million, guaranteeing the safety of foreign investments. This has made Singapore, US$ 13.36 million, and Sweden and Italy, a total of textiles the country’s principal export,” said the company’s US$ 10.7 million. Having reaped the benefits of branching chairman, Mr. Tim Savile.

14 Sri Lanka Calling For some Indian investors, Sri Lanka is a combination of the best from all over the vast Indian sub-continent. “Give me the working ambience of the best run state in our country (India), give me the environment that is as pollution-free and as picturesque as Goa is, give me social life that is comparable to that in Bombay and give me safety of life that is better than what you get in Delhi …and I will give you the life in Sri Lanka, all these rolled into a package,” said Mr.V. Sekhar, CEO, CEAT-Kelani Associate Holdings Pvt. Ltd (ACPL). The company, a joint venture between India’s second largest tyre manufacturer CEAT India and Associated Motorways Group, Sri Lanka, commenced its operations in 1958. Through strategic investments, acquisitions, and technologically-advanced manufacturing facilities, ACPL established a base in Sri Lanka to capture the international market. Today, the company employs 230 and has an average World Trade Center, Colombo annual turnover of Sri Lankan Rupees 900 million. As the world demand for Information Technology (IT) products escalates, Sri Lanka’s labour force stands ready. “People here can adopt new technologies fast and are “Such unprecedented success is due to the willing to learn…this is very important in the software Sri Lankan government’s excellent incentives business, which changes every day,” said Mr. Per Wong, guaranteeing the safety of foreign investments. This Managing Director of Industrial & Finance Systems (IFS). IFS, has made textiles the country’s principal export,” a global enterprise applications company, set up a Research said Coats Viyella’s chairman, Mr. Tim Savile. and Development Centre in Sri Lanka in 1997, and is, today, Sri Lanka’s largest foreign investor in the software industry. It is one of the many foreign IT companies that have been drawn by Sri Lanka’s growing pool of skilled graduates in Perhaps the most commonly and enthusiastically noted factor computer programming and software engineering, and solid by international investors in Sri Lanka is its competitive labour IT infrastructure. Other investors include EDS Development force. Said CEO of Fuji Denki Kagaku Kogya (FDK) Lanka, Mr. (Pvt) Ltd., the largest independent software houses in South K. Kono: “The skilled workforce is the best educated, most East Asia and the UK, and Virtusa Corporation, a fast-growing trainable employees in Asia for the electronics industry. That US software services firm. is the chief reason why we chose Sri Lanka as the home to FDK

Lanka, subsidiary of Matsushika.” FDK Lanka, a subsidiary of Given recent initiatives by the Ministry of Enterprise leading electronics manufacturer FDK of Japan, set up shop in Development and Investment Promotion and the Board of the Katunayake Export Processing Zone (KEPZ) in 1990. Since Investment of Sri Lanka (BOI), such as the development of then, FDK Lanka has raised its investment through expanding new IT techno-parks to boost infrastructure, and a Knowledge its workforce, manufacturing facilities and product range, City with modern educational facilities and services to raise and has also set up the first ever state-of-the-art clean room the quality and quantity of the labour market, Sri Lanka is set facility in Sri Lanka. to draw even more international investors in the future.

Sri Lanka Calling 15 Why Sri Lanka? Dollars& SENSE Investors may ask: why does investing in Sri Lanka make good business sense? Strategic location, conducive investment climate, investment incentives, competitive labor market & good Infrastructure are factors that make sense in them parking their dollars here.

Strategic location 29 per cent to 2,880,387, cargo movement 76 per cent to For businesses eyeing the fast-developing region of South 116 tonnes, and aircraft movement 27 per cent to 21,058. Asia, Sri Lanka is an opportune entry point. Ideally situated at Access to India through Sri Lanka has been further the intersection of east and west sea routes, Sri Lanka offers enhanced by the Indo Lanka Free Trade Agreement, which easy access to rising economic powerhouse India, where a offers a wealth of opportunities for local and multinational sixth of the world’s population resides. This, together with firms in Sri Lanka seeking to enter the vast Indian market. The a world class seaport and airport, positions Sri Lanka as a agreement’s underlying premise is to eliminate tariffs phase- strong regional trading hub. by-phase to create a free trade area. Sri Lanka’s Free Trade

The well-equipped Colombo seaport combines state-of- Agreement with Pakistan also offers similar opportunities. the-art technology with efficiency and flexibility, to provide Further, trade barriers continue to fall in the region. Progress on top-quality service at competitive rates. Over the last seven the South-Asia Free Trade Arrangement (SAFTA), agreed upon years, output has risen at a compound annual rate of by the seven countries of the South Asian Association for 20.3 per cent. Today, ranking first in the region and 26th Regional Cooperation (SAARC) in 2004, has been steady. in the world, according to the Lloyds Register, the port Conducive investment climate boasts 23 major shipping lines and 7 feeder services that An investor-friendly environment is present in Sri Lanka, with operate out of Colombo. Two more ports, in the south and its open economy and supportive laws and policies. As South north-east coast, are underway. Asia’s most liberalised economy, Sri Lanka provides investors Considered the top in South Asia, Sri Lanka’s Bandaranaike with preferential tax rates, constitutional guarantees on International Airport (BIA) is a regional hub of air investment agreements, exemptions from exchange control transportation. Flights by major airlines to prominent cities and full repatriation of profits. According to the Economist all over the world – from Europe to the Middle East to Intelligence Unit (EIU) forecast, Sri Lanka’s overall score the Indian subcontinent to Australia – operate frequently in business environment improved from 4.99 in the period from BIA. From 1995 to 2000, passenger movement rose 1997-2001 to 6.03 in the forecast period 2002-2006,

16 Sri Lanka Calling improving its world ranking from 49th to 45th and its regional 2000, Sri Lanka has the lowest labour cost per worker in the ranking from 14th to 13th. Sri Lanka also ranked high in manufacturing sector). This large labour pool, which accounts the region on its liberal approach to foreign investment, for 35 per cent of the country’s population, caters to the commitment to private enterprise and competition, and its modern investor’s needs. Education levels are high with the liberalised trading environment. literacy rate at 92 per cent, unsurpassed in the region, and

Further protections for investors include safeguards against about 50per cent of higher education graduates are trained expropriation and non-commercial risk, as Sri Lanka is a in business and technical disciplines. founder member of the Multilateral Investment Guarantee Investors can also look forward to growth in quality and Agency (MIGA). Also, commercial disputes can be referred to an arbitration centre in Colombo that follows the quantity of workers trained in Information Technology (IT) International Chamber of Commerce rules. Intellectual with the Board of Investment of Sri Lanka’s (BOI) recent property rights are protected under the Code of Intellectual announcement that it will develop a Knowledge City, an Property Act, which includes laws relating to copyright, educational institute providing state-of-the-art facilities and industrial design, patents, trade marks, service marks, trade services. Sri Lanka also has an added strength in the wide names and unfair competition. use of the English language throughout the country, and its

Investment incentives dominant use in the business community.

Benefits abound for those who invest in Sri Lanka. The Good Infrastructure government offers a wide range of incentives, without The smooth running of businesses in Sri Lanka is well- preference, to both foreign and domestic investors who invest in Sri Lanka-incorporated firms. Regulations have supported by a comprehensive, modern and stable been set under Section 17 of the Board of Investment of infrastructure. With the pouring of private and public Sri Lanka (BOI) law to ‘grant specific incentives to new and investments into the country’s basic infrastructure facilities, existing enterprises satisfying specific eligibility criteria’. Sri Lanka’s infrastructure has improved to emerge at the top These incentives, which generally cover areas such as income in South Asia. Today, private investment projects run in many tax, customs duty and foreign exchange controls, apply to crucial areas, such as telecommunications, power, ports, companies that have signed an agreement with the BOI, and water sanitation, transportation (highways and rail) and IT. last as long as the company’s life. The government also continues to actively woo private sector

Specific incentives include tax holidays or preferential tax investment in infrastructure on the basis of BOO (Build, rates, exemptions from customs duty and foreign exchange Operate and Own) and BOT (Build, Operate and Transfer). controls. Also part of this package of incentives is the Resident Guest Scheme, which grants a five year residence And, with new developments underway, businesses can expect visa to investors who meet the criteria. an even more robust infrastructure in the future. Information and Communications Technology (ICT) infrastructure is set More detailed information on investment incentives is to improve, with the government’s recent commitment to set available on the BOI website (www.boi.lk). up more IT techno-parks and develop the IT sector. Other Competitive labour market projects planned include renovation of the Southern rail In Sri Lanka, investors will find a workforce that is track, a 300MW coal power plant, a US$100 million water hardworking, skilled, adaptable, and available at competitive treatment plant in the Ampara district, and US $700 million wages (according to the World Bank Development Indicators expansion of the Colombo port.

Sri Lanka Calling 17

Sri Lankan Fashion Fabric of modernity

ith its colonial history, location between the east and west sea routes and globally-connected W economy, this cosmopolitan island-nation experiences a wide range of influences. These influences inspire the exciting fashion scene in Sri Lanka today.

The past 20 years have witnessed a revolution in the fashion and shopping industry in Sri Lanka. The garment production and export industry grew during this period to become the country’s largest export industry, and one well-reputed in the world. Among the apparel companies who have sourced their products from the country are international designer labels such as Calvin Klein, Gucci, Pierre Cardin, Nike, Tommy Hilfiger and Ralph Lauren. Today, the Sri Lankan people no longer have to go to tailors or dressmakers. Ready-made, export- quality designs for men and women are widely available at a fraction of the cost in Paris or London.

The local fashion industry has been quick to ride on this wave, as the vibrancy of the Colombo Fashion Week events have shown. The last three years have seen two such events, showcasing the talents of Sri Lankan designers with the aim of boosting the development and international Perhaps the aspect of daily life that reputation of the local industry. This year’s event (held from 27 to 29 January 2008) showcased both established best captures Sri Lanka’s diversity and young Sri Lankan designers as well as designers and uniqueness is clothing. From from India, Bangladesh, Pakistan and Italy. It also had traditional saris to perfectly-tailored coverage from the global fashion media, like Cosmopolitan, Vogue, Elle, and Femina. business suits to rugged blue jeans, the attires of the Sri Lankan people With growing international attention and fast development, are colourful juxtapositions reflecting Sri Lanka’s fashion industry parallels the country’s route to progress. But, more importantly, through its creative the diverse forces at work in the blending of rich traditions with modern stylishness, country. it becomes its own.

Sri Lanka Calling 19 Information Technology Gaining Momentum

Growth of the Sri Lankan Information Technology (IT) sector has been astounding. Internet connections have grown at a rate of 200 per cent; from 1,975 subscribers in 1995, when internet service providers first operated, to 85,500 in 2003, and an estimated 100,000 presently

oftware exports have been increasing at a compound yield per employee of US$ 40 - all by 2012. The Government annual rate of 45per cent, and the total value of has also showed its commitment to the development of the S software exports was approximately US$ 58 million in country’s IT sector through its dedication to set up more IT 2000. There are currently more than 175 software development techno-parks. It was announced in January 2008 that that companies in Sri Lanka, churning out products and services the Board of Investment of Sri Lanka (BOI) and the Sri Lanka for both export and domestic markets. Most impressive is the Institute of Information Technology (SLIIT) will be developing expansion of the telecommunications sector, the groundwork an IT Park in Malabe equipped with all modern facilities on which IT companies rely to run their day-to-day activities and services for promoting IT, Business Process Outsourcing and gain access to global markets. Fixed access telephone (BPO) and other knowledge based industries. The Minister connections leaped by 700 per cent, from 121,388 in 1991 of Enterprise Development and Investment Promotion Dr to 958,832 in 2004. Cellular connections skyrocketed to Sarath Amunugama recently said: “Technology can play an 1,801,392 in 2004 from a mere 1,800 in 1991. important part in changing the mindset of a Nation. The Government of Sri Lanka, and my Ministry, in particular, is Today Sri Lanka’s telecom industry is the most liberalised in committed to modernising the national economy. We have South Asia, consisting of 3 fixed wireless local loop operators, earmarked the informational technology sector as one area 4 mobile operators and 5 public phone operators. And this for future growth.” momentum is set to rise, boosting Sri Lanka’s presence in the international IT scene. Already several BOI (Board of Why invest in IT in Sri Lanka? Investment of Sri Lanka)-approved software companies have With an expanding skilled labour market, comprehensive gained global reputation with their adeptness at developing infrastructure and attractive incentives in place, Sri Lanka sophisticated software applications for international clients. has vast potential for investment in IT. Companies which These include EDS Development (Pvt) Ltd. and Millennium have jumped on the bandwagon include international names Information Technologies and Informatics. such as IFS (Industrial & Financial Systems) who have set up Sri Lanka also serves as a call center outsource destination their research and development center, employing over 250 for international household names such as HSBC, Astron, people, and Microsoft and Oracle, who have also opened local VNS Global and WPA (Western Provident Association). The offices recently. The Sri Lankan labour market is reputed for Software Exporters Association (SEA) has targeted to achieve its productivity, high literacy rate (92 per cent), proficiency in total exports of US$1 billion, a work force of 25,000, and English and cost competitiveness. The average annual wage

20 Sri Lanka Calling for software professionals in Sri Lanka is approximately 10% incentives. This, together with other factors such as a of the average US rate. Worker’s skill is top-notch, with the privatization, transparent legal system and the development National University program in computer studies ranking of free trade zones, has earned Sri Lanka a ranking of 42 among the best. And, with recent initiatives to increase IT in the Economic Intelligence Unit (EIU) country forecasts personnel by institutes and training centres, Sri Lanka is set for Business Environment, placing it ahead of countries like to provide a large pool of IT professionals. India, China and Pakistan.

Sri Lanka also boasts global-standard IT infrastructure. The four main areas in the industry that the BOI has Its liberalised telecom industry provides modern facilities pinpointed for promotion are software development, and is one of the most competitive in Asia. Sri Lanka is E-commerce, IT training and IT infrastructure. connected to the SEA-ME-WE fibre-optic communication system and also taps from 15 communications satellites over BOI has also identified new investment opportunities, the Indian Ocean. including Data and Internet Hosting Centres, Online and Mobile Commerce, E-maintenance, Application Services The SEA-ME-WE 4 project, an alliance between Sri Lanka and Providers, Disaster Recovery and Distance Learning. 15 international partners, promises a revolutionary submarine Key Associations: cable system that will offer Sri Lanka unprecedented bandwidth advantage, giving it the support it needs to be Sri Lanka Association for the Software Industry (SLASI) - a globally competitive business hub. Recently identified as a www.slasi.com key industry, the IT sector has been granted extension of tax Software Exporters Association (SEA) - holidays, concessions, duty exemptions and other investment www.islandsoftware.org

Sri Lanka Calling 21 Tourism

entrance, where the world’s oldest staffer welcomes each guest. Inside, from velvet curtains to mahogany corridors to spiral staircases, the romanticism of the Victorian period is worked into every corner. These qualities have drawn royalties, country leaders, celebrities, and other luminaries, a testament to the hotel’s allure and exceptional hospitality.

With all its grandeur, it is hard to imagine the hotel’s humble beginnings. It was erected in 1864 around the old Parliament House and a kilometer-long stretch of lawn called the Galle Face Green, from which the hotel got its name. Four British entrepreneurs constructed the building, initially as an old Galle Face Hotel Dutch villa where they held meetings to discuss business strategies. Piece by piece, the four Englishmen expanded their property. Today, the hotel, dubbed one of Asia’s finest, sits on 1.7 hectares of prime property - on the edge of the Back in Indian Ocean and in the heart of the city.

Guest rooms are fully air-conditioned, floored and panelled with polished wood, furnished with antiques, and come complete with a 24-hour personal butler service. Dining at Time the Galle Face Hotel is an experience in itself. The hotel’s Experience a unique blend of past 9 restaurants and 4 bars offer a wide selection of mouth- and present Sri Lanka in these 5-star watering cuisine, from East-West fusion at The 1864 to smoky seafood barbeque at The Sea Spray restaurant, in atmospheric Colombo hotels. settings overlooking the ocean. Facility highlights include an underground cellar, museum, shopping arcade and a ith its rich heritage and modernity, Sri Lanka is 20,000 sq. ft. spa that contains Colombo’s largest saltwater a harmonious mix of old and new. And nowhere swimming pool. Also available are complete conference is the contrast as stark as in the Island’s largest W facilities and services, such as function rooms, multimedia city - Colombo. Remnants of the Island’s colonial past are equipment, event management and transportation. seen here, in old town halls, parliament houses, churches, and tree-lined avenues that form the backdrop of this busy Mount Lavinia Hotel commercial capital. As a popular destination for tourists and The story of Mount Lavinia Hotel is one steeped in history businessmen, Colombo boasts a wide range of hotels. Here and founded on love. The current building is a shell of former are three among the best, hotels that combine the charm of British governor Sir Thomas Maitland’s home, which was a bygone era with modern luxury, reflecting the aura of the constructed in 1806. It was at a welcoming party held at this city they nestle in. palace residence that Sir Maitland first laid eyes on dancer Galle Face Hotel Lovina, whom he soon found himself obsessed with. A secret tunnel was built linking the palace to the girl’s house, creating “Yesterday’s charm and tomorrow’s comfort” was the vision a means for the two forbidden lovers to elope. The house was of the hotel’s 1960 Director, Cyril Gardiner. His dream can later renamed Mount Lavinia House after the governor’s lover. be felt today the moment one walks through the hotel’s

22 Sri Lanka Calling Taj Samudra Hotel The Taj Samudra makes a good first impression. Its grand local- style architecture stands out not only from the surrounding garden of swaying palm trees and tropical greenery, but as a landmark in Colombo. Step through its entrance and one feels transported into another era. The hotel’s interior greets each guest with bubbling fountains, rich Indian designs and cool marble. Outside, the Indian Ocean and the historic Galle Face Green border the edges of the 11-acre compound, giving Mount Lavinia Hotel a feel of a colonial English countryside.

Today Mount Lavinia has retains its Classical English design and continues to bewitch guests with its air of romance.

Situated 12 km from Colombo and 1 km from Mount Lavinia town, this hotel and resort which overlooks the Indian Ocean is a convenient escape from the bustle of the city. Within its commanding and elegant white colonial façade is a lavish interior of polished wooden floors, intricately carved wood ceilings and large windows that frame the stunning sea views. Taj Samudra Hotel

The hotel’s 257 rooms are split into three wings, each with Besides housing one of Colombo’s largest convention its own distinctive flavour. The Governor’s Wing is where centres, the hotel also has well-equipped meeting rooms class meets comfort, with antique furniture, wooden floors, accommodating 20 to 500 persons, as well as two landscaped and present day necessities such as a satellite television lawns and a pool terrace for outdoor functions. Themed and fully-equipped bathroom. An outstanding feature of the nights are the hotel’s speciality, where everything from food recently refurbished Bay Wing is its private balconies, where to entertainment is arranged according to various themes one can enjoy magnificent views of the Indian Ocean in such as Sri Lankan evenings and the Indian ‘Maharaja solitude. The Sea & Garden Wing, meanwhile, boasts rooms Magic’. This has attracted many prestigious conferences, with pastel-coloured walls that open out into the gardens including two SAARC (South Asian Association for overlooking the sea. Regional Cooperation) summits.

Although its pool is a popular spot on sunny days, the All 300 air-conditioned rooms come with modern services hotel’s extensive strip of beach is a haven for the more and amenities such as interactive TVs and Wi-Fi. The hotel adventurous. Events and conferences are also its speciality. also has a ‘Club Floor’, where 37 rooms and 5 suites are Besides providing an atmospheric venue, the hotel provides dedicated to business travellers. Hotel facilities include five services that cover everything from planning to execution, restaurants that offer unique dining experiences, a sports and taking pride in its portfolio of themed parties. Other facilities music bar, business centres, a shopping arcade and beauty include renowned restaurants and bars offering a wide salon. Part of the Taj Group of Hotels, India’s largest global gastronomic variety, a business centre, shopping arcade, and hotel chain, Taj Samudra promises to spoil every guest with a wellness centre that offers beauty treatments, massages individualised treatment, in an environment that combines Eastern splendour with international comforts. and yoga classes.

Sri Lanka Calling 23

Gems & Jewellery

All that SPARKLES Text by: Ajith Perera, F.G.A

From time immemorial, Sri Lanka has had a sparkling reputation for highly treasured gems. Sri Lanka’s mineral rich soils have been yielding a seemingly never ending supply of high quality precious and semi precious gem stones, such as Sapphires, Star Sapphires, Rubies, Star Rubies, Alexandrites, Cat’s Eyes, Garnets, Zircons, Tourmalines, and Spinels.

he gem industry in Sri Lanka is of great antiquity. with Brazil, South Africa, Myanmar and Thailand as one of Reference is made in the Scriptures to gems being the five most important gem-bearing nations of the world. T brought from Ceylon to the Court of King Solomon. It Sri Lanka has been a virtual treasure trove of gems that have is also said that ages ago, Arab adventurers came to Ceylon been much sought after as gifts for royalty, from the Queen in search of gems. The Mahavansa, the great historical of Sheba to Princess Diana. Of the country’s many treasures, chronicle of Ceylon, whose authority is undoubted, refers to none is as beautiful as the Sapphire. Sapphires belong to the singular reputation of this Island for its wealth in gems. the Corundum family, which gives Sri Lanka two of its most It is an accepted fact that Sri Lanka is one of the largest valuable gemstones, rubies and sapphires. sources of some of the finest gemstones in the world. A few Sapphires of different colours @ Sri Lanka of the priceless treasures whose origins are traceable to Sri Lanka are the Blue Giant of Orient (466 cts), the Logan Blue High quality certified sapphires can be sourced readily from Sapphire (423 cts), the Blue Belle of Asia (400 cts), the Rosser any of the reputed dealers, who are required to obtain a Reeves Star Ruby (138 cts), the Star of Lanka (393 cts) and Gem Dealers Licence issued by the National Gem & Jewellery the Ray of Treasure (105 cts Cat’s Eye). Authority (NGJA) of Sri Lanka. There are also Shops and a Gem Testing Laboratory at the Sri Lanka Gem & Jewellery The Star of Lanka and Ray of Treasure are the proud Exchange, a State sponsored Gem & Jewellery Gallery, at possessions of the National Gem & Jewellery Authority. Even Levels 4 & 5, East Low Block, World Trade Center, Colombo, the names bestowed upon Sri Lanka throughout the centuries and Gem Exchange, located at the Gem Center, Ratnapura, echo the riches contained within its soil. Sri Lanka has been for the more discerning customers. called Ratnadvipa- the Island of Gems. Sri Lanka was also known as the Pearl of the Indian Ocean, due to the fine It is important to note that irrespective of the place of natural pearls found in the Gulf of Mannar. Others believe purchase, foreign customers are offered a free Gem Testing that the name given to the Island by Marco Polo, Seilan, is Service at the NGJA Laboratories, at 25 Galle Face Terrace, derived from the world sila, which means a rock, possibly in Colombo 03, and at the Gem Exchange, W.T.C. Colombo, reference to its abundant wealth in minerals. Sri Lanka ranks Monday to Friday.

Sri Lanka Calling 25 Blue Sapphire – Spectacular recent discoveries of Blue Sapphire in Sri Lanka The National Gemstone of Sri Lanka include: • An 850 carat blue sapphire found at Hakamuwa The blue colour of the Sapphires (Ratnapura District) from Sri Lanka, especially the • A massive 8042 carat stone found in a gem pit at famous cornflower blue, is one Pelmaddulla • A fine blue sapphire, weighing 2516 carats, found of the most prized colours in the at Ellawala world. Sri Lankan Sapphires tend • Another blue sapphire, weighing 4002 carats, found at to be brighter, and are renowned Neelagama for their transparency, superb clarity and • A 250 carat blue sapphire of deep blue colour found at Ganegama in Pelmadulla vivid lustre. Many of the finest specimens of sapphires in the world’s top gemstone collections have come from Sri Lanka. Sapphires are the transparent gem variety of the mineral family Corundum and they also come in yellow, white, green, The ‘Blue Sapphire’ was declared as the ‘National Gem Stone pink, orange and purple colours. Any non-red corundum is of Sri Lanka’ in 2003. Flawless, transparent blue sapphires called a sapphire. The red variety, of course, is the ruby. of deep blue colour are highly priced. Sri Lanka is the largest supplier of top quality large blue sapphires of natural colour The author is Actg. Deputy Director General, National Gem to the world. and Jewellery Authority

26 Sri Lanka Calling EVENTS

SNAP SHOTS The Sri Lankan High Commission in Singapore has been organising many cultural and business events. Here are some snapshots. Fashion and Dance EVENING

The Fashion and Dance Evening was organised by the Sri Lanka High Commission in Singapore, and was held at the Tanglin Club on 28 September 2007. The event was sponsored by Ceylinco Consolidated. Eleven models from Sri Lanka were flown in for this occasion along with a dance troupe. Dancers from “With My Feet” presented “Vogue”, which was choreographed by Naomi Rajaratnam. An exciting fashion line by Yoland Collection, and jewellery by Ceylinco Consolidated, enthralled the Who’s Who of Singapore Society present at the gathering.

Sri Lanka Calling 27 GLIMPSES

Singapore International Jewellery Show 2007

VENERATION AND EXPOSITION CEREMONY FOR SACRED RELIC OF LORD BUDDHA

SEMINAR ON InVESTMENT OPPORTUNITIES IN SRI LANKA

LAUNCH OF NEW AIRLINE, MIHIN LANKA, IN SINGAPORE

28 Sri Lanka Calling