German businessmen keen on investing more in Lanka

The German business community in Sri Lanka is upbeat on Sri Lankan economy and more investments are being made by them, Chief Delegate of German Industry and Commerce in Sri Lanka, Andreas Hergenroether said.Speaking during the re launch of the 5th edition of the “Top German Brands in Sri Lanka” he said that as the logistic hub in South Asia and future trade hub, Sri Lanka will offer in the near future more business opportunities than ever.

The Belt and Road Initiative by China which has included Sri Lanka too would help more opportunities. He also said that a business survey conducted in Sri Lanka by AHK, in Germany involving German investors in Sri Lanka also revealed that the majority of them are ready to reinvest in Sri Lanka in the next two years.

Regarding the overall economic situation in Sri Lanka, 63% of respondents of the survey had a neutral or improving perception while 43% evaluated that the Sri Lankan economic situation will remain unchanged for another two years. 20% of the respondents expect an improving economic situation from the Sri Lankan side.”

“Regarding their respective industries, German companies’ outlook resembled their perception of the economic situation in Sri Lanka, with 77% of the companies perceiving the situation in the industry as neutral or improving and only 22% expecting it to worsen in next two years.”He said that in terms of tender procedures, more than 45% German companies stated that the government tender procedure was not transparent and it should be developed further. “35% were neutral and 20% stated a positive perception.”

Most of the German companies felt that the environmental rules and costs are not representing serious challenges for them.Meanwhile German Ambassador Jörn Rohde said that Germany, which is regarded as a world champion in industry and trade, is becoming an increasingly important business partner for the island.“Sri Lankan exports to Germany increased by 13% in 2017 to € 653 million whereas the imports from Germany increased by 81% to € 570 million.The total direct investments to Sri Lanka from Germany amount to USD 1.2 billion in total and to USD 6 million in 2017.”

Minister of Development Strategies and International Trade Malik Samarawickrama, said that they he will lead two Sri Lankan business delegation to Germany next week to woo more German investors to Sri Lanka and have Road shows in three cities, Frankfurt, Hamburg and Berlin in Germany in three days.The Top German Brands in Sri Lanka event was organized by the Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) with the support of the Embassy of the Federal Republic of Germany. More than 100 German brands were represented during the re launch.

Regional COO Allianz Singapore Dr. Ruediger Schaefer, delivering the keynote speech presented an analysis of current opportunities in Sri Lanka with special attention being paid to economic development and the regional impact of the island and its economic activities.