By: Staff Writer
August 19, Colombo (LNW): Sri Lanka and the Kingdom of Saudi Arabia have agreed to enter into a Memorandum of Understanding (MoU) in a bid to bolster economic ties and attracting direct investments.
The Cabinet of Ministers has endorsed the MoU, viewing it as a critical step towards harnessing foreign direct investment (FDI) to drive sustainable economic development.
Ambassador of Sri Lanka to the Kingdom of Saudi Arabia Omar Lebbe Ameer Ajwad met with Saudi Arabia’s General Authority of Foreign Trade (GAFT) Governor Mohammad Alabduljabar at GAFT Headquarters in Riyadh on 7 August.
While welcoming Ambassador Ameer Ajwad to the Kingdom of Saudi Arabia, GAFT Governor Mohammad Alabduljabar stressed the importance of enhancing bilateral cooperation between the two countries in potential sectors for win-win benefits. He extended GAFT’s support towards this end.
The MoU, signed during a special meeting of the World Economic Forum in Riyadh, Saudi Arabia, recently, marks a pivotal moment in the bilateral relations between the two nations.
The agreement was inked by Sri Lanka’s Minister of Foreign Affairs in the presence of global leaders and economic stakeholders.
Key provisions of the MoU include collaborative efforts towards policy and legal reforms aimed at creating a conducive environment for investments. In addition, both nations intend to focus on upgrading infrastructure facilities and streamlining bureaucratic processes to facilitate smoother business operations
Recalling ancient international trade links between Sri Lanka and Arab nations, Ambassador Ameer Ajwad highlighted promising areas for cooperation between the two countries and proposed collaboration in specific sectors such as food, agriculture, IT, manufacturing, hospitality, real estate, constructions, etc., for trade and investment.
The Ambassador expressed Sri Lanka’s readiness to partner with Saudi Arabia in the realisation of its Vision 2030 and invited a trade delegation from Saudi Arabia’s General Authority of Foreign Trade to visit Sri Lanka on a fact-finding mission.
Deputy Governor of International Relations Abdulaziz Alsakran and senior officials of GAFT and First Secretary (Commerce) of the Embassy of Sri Lanka in Riyadh Tashma Vithanawasam also participated in the meeting.
The agreement “aims to attract direct investment to the country and improve the investment environment of both countries through policy and legal reforms, provision of advanced and integrated infrastructure, process redesign, etc.”
Sri Lanka lagged behind regional nations in attracting foreign direct investment, the minister said. “Compared to Singapore which last year attracted FDIs of 140 billion dollars, India 70 billion dollars, Vietnam 28 billion dollars, and Thailand 20 billion dollars, Sri Lanka only attracted 1 billion dollars.”
