Minister Sharma, Mittal to pitch for more Indo-Lanka biz ties in Colombo next month
Sunil Bharti Mittal, India’s fifth largest dollar billionaire of Airtel fame, and Indian Commerce Minister Anand Sharma are among the renowned members of the top Indian delegation coming here next month.
“The high-level Indian trade delegation arriving next week will consist of reps from the Government, business and the chambers. The arrival of this delegation for business and trade will strongly enhance bilateral trade cooperation between Sri Lanka and India,” said Rishad Bathiudeen yesterday, extending a welcome to one of the strongest overseas trade delegations to visit the country in 2012.
In addition to Indian Commerce, Industry and Textile Minister Anand Sharma and Bharti Mittal (Group CEO of Bharti Enterprises), Commerce Secretary S.R. Rao, top Indian Department of Commerce officials, key members of the Indian Chamber of Commerce and Industry (CII) and business leaders of well-known Indian firms will also be taking part.
Mittal is the founder, Chairman and Group CEO of Bharti Enterprises (BE). Airtel, the fifth largest telecom provider in the world (also operating in Sri Lanka), is BE group’s flagship firm. According to Forbes’ ranking, Mittal is the world’s 113th dollar billionaire and the fifth in India with a net worth exceeding $ 8 b.
BE is reportedly the eighth most valuable firm in India. The BT-INSEAD-HBR Best CEOs list ranks him as the fifth best performing CEO while the Economic Times of India lists Mittal as the 16th most powerful CEO in India for 2012.
Among the other leading Indian firms in the delegation are Ashok Leyland, Taj Group, Bharat Hotels, NTPC Ltd. (largest State-owned power utility), Suzlon Energy, Indian Oil Corporation, State Bank of India, TVS Motor Co, Punj Lloyd and Jubilant Life Sciences.
John Keells Holdings, AMW, Samson International, Dilmah Tea, CIC Group, Ceylon Biscuits, Hettigoda Group, Brandix Lanka, LAUGFS Holdings, Bank of Ceylon, Watawala Plantations and Unit Trust Management Co are among the top Sri Lankan corporates slated to take part in the India-Sri Lanka CEO Forum to be held on 4 August.
The Ceylon Chamber of Commerce is among the key Lankan entities waiting to make representations to the Indian delegation during its four-day stay in Colombo.
India was Sri Lanka’s topmost trade partner in the world registering $ 4.8 b trade (2011). According to the Department of Commerce of Sri Lanka, total trade between India and Sri Lanka, which stood at US$ 672 million in 2001, rose to US$ 4.871 b in 2011.
Spurred by the implementation of the India-Sri Lanka Free Trade Agreement (ISFTA) in 2000, exports from Sri Lanka to India have increased rapidly over the years rising from $ 70 m in 2001 to $ 521.61 m in 2011. Though the ISFTA has further strengthened trade and economic relations between the two countries, economic asymmetries of the two economies have also reflected in the overall bilateral trade. In 2011 exports to India recorded 12% growth over 2010. The balance of trade between India and Sri Lanka has always remained in favour of India.
According to the BoI, Indian investments in Sri Lanka stood at $ 600 m by 2011. Today, India is among the five largest overall investors in Sri Lanka. Bharati Airtel (mobile telecommunications), Britannia (confectionary), Lanka IOC (fuel), TATA (steel and communications), Taj Hotels, Ultratech (Cements), Ambuja (Cement), CEAT (tyres), Piramal Glass and Ashok Leyland (transportation), SBI Bank, Indian Overseas Bank, Indian Bank and ICICI, Jet Airways, Sahara and Indian Airlines, ICFAI (higher education), and First Source IT are top Indian firms operating in Sri Lanka.
On the other hand, Sri Lankan companies such as Brandix, MAS Holdings, Damro, Dankotuwa, Carson Cumberbatch, Aitken Spence, John Keells, Colombo Dockyards, DRH Logistics and Freight Links International, etc., have established in many sectors in India through trade or investments. On 10 July, Tata Steel, the $ 83 b Indian conglomerate Tata Group’s Fortune 500 entrant 2012, said that it wants to futher expand its presence in Sri Lanka.
