Mutual lessons
Sri Lanka and Singapore have much in common. Everyone is familiar with the famous story of how Singapore’s iconic leader Lee Kwan Yew aimed to make Singapore like Sri Lanka and since the end of the war, Sri Lanka has been making significant strides to catch up. With the visit from Singapore Foreign Minister K. Shanmugam leading a business delegation to a business forum in Sri Lanka, it would seem that a new chapter in trade relations is about to begin.
The Singapore Business Federation delegation which visited Sri Lanka to meet their counterparts in the Sri Lankan corporate sector for establishing trade, investment and tourism links attended the Sri Lanka Singapore Business Forum yesterday. The highlight at the event was the signing of the Memorandum of Understanding between the Singapore Business Federation (SBF) and the Sri Lanka Singapore Business Council (SLSBC) affiliated to the Ceylon Chamber of Commerce. The signing of this MoU between the two countries clearly indicates that Singapore-Sri Lanka business relations have entered a new phase and are expected to progress to reach greater heights in the future.
A large number of Sri Lankan participants from leading companies engaged in the one-to-one business meetings after the event to meet with 21 delegates from leading companies in Singapore. Given the geographical centrality of both countries and their growing economies, the potential for trade has barely been tapped.
Since the end of the war, Sri Lanka has been obsessively focused on development, which could be greatly aided by Singaporean expertise. Whether it is making the most of large development projects, regulating the business environment or establishing good governance structures, Singapore has much to offer a budding Sri Lanka.
Conversely Sri Lanka’s growing exports, tourism and other industries together with cheap labour, high literacy rates and solid commitment to peace can expand opportunities. From small enterprises to large corporates, Sri Lanka has a variety that could provide the right recipe for success. Making a start now would certainly be opportune.
Sri Lanka had the capacity to become a hub for transhipment and exports had not the war intervened. In that space of time, Singapore did become a hub and a global economic force that most developing countries are aspiring to. However, it also creates the platform for both countries to find mutually-agreeable opportunities.
Since the global economic meltdown and increasing tension in the Eurozone, emerging economies in Asia have increased in importance. Sri Lanka’s proximity to the entire south Asian region, particularly India, gives Singapore a chance to expand regionally as well.
Singapore’s total trade with Sri Lanka in 2011 amounted to $ 1.94 Bb, of which $ 1.53 b were imports. From Singapore’s end, Sri Lanka is the 37th ranked global trading partner. Singapore firms in Sri Lanka are active in property development (Overseas Realty Ceylon Ltd.), food and beverage processing (Prima Ceylon, AsiaPacific Breweries), logistics (Keppel Logistics), telecommunications (LankaCom, subsidiary of Singapore Telecom), apparel (Ghim Li Group) and conventions and conferences (Pico Global Services).
This shows both the convergence and opportunity for Singapore and Sri Lanka. All that remains now is to ensure that this potential is not left to go to waste.
