The Board of Investment of Sri Lanka (BOI) has conducted a successful investment promotion mission to Germany, targeting key business leaders in three cities.

The highlight of the mission was a well-attended investment promotion seminar at the offices of the German Chamber of Commerce and Industry (IHK) in the financial capital of Frankfurt on Main. The meeting was organised by the BOI in collaboration with the German Asia Pacific Business Association (OAV) and Federation of German Industries (BDI).

Addressing more than 50 German business leaders, Executive Director (Investment Promotion) of the BOI, Mr. Duminda Ariyasinghe said Sri Lanka was at the threshold of a strong growth trajectory. He said that while on one hand the conflict in Sri Lanka was nearing an end, the country was ideally placed to benefit from the economic boom in South Asia, thanks to its strategic location and preferential trading agreements with India and Pakistan.

Addressing some of the misconceptions in Germany about Sri Lanka, Ariyasinghe said that no investor or foreigner had ever been harmed by the conflict in the island. He outlined the key incentives and facilities available to German investors in Sri Lanka.

Three of the existing German investors in Sri Lanka presented case studies on their experiences in the island. Mr. Wiestaw Kramski, Chairman, Kramski GmbH who came to Sri Lanka in 1993 spoke of the success of his venture. Mr. Kramski said that despite some initial labour pains, his Sri Lankan operations had become very profitable. He said the productivity of 50 German-trained Sri Lankan workers was equal to standards in Germany. Kramski which employs 190 people plans to double production, he said.

Mr. Martin Ebeling, CEO of Graphit Kropfmuhl AG which owns the Bogala graphite mines said his company felt very safe to operate in Sri Lanka. He said that in Sri Lanka any labour issue can be addressed through discussions, pointing to his company’s collective agreement with workers. He said the company will be expanding its operations in the island.

Mr. Thomas Kriwat, a senior member of the OAV and the Managing Director of Mercantile Shipping Company told the audience that investing in Sri Lanka was most rewarding if German companies identify the correct local partner. The company operates a training institute for seamen in Galle which trains appx. 1,000 people annually. Speaking of political developments in Sri Lanka, Mr. Kriwat said the German media had largely ignored positive developments, including the establishment of representative government in the Eastern province.

Dr. Jürgen Ratzinger, Managing Director, International Business at Frankfurt Chamber of Commerce and Industry (IHK) complimented Sri Lanka for its strong economic growth. He said German companies can benefit from opportunities in Sri Lanka and noted that the forum was one of the best attended among recent investments briefings by a country. Dr. Ratzinger paid a tribute to Mr. Buddhi Athauda, the Sri Lankan Consul General in Frankfurt for actively engaging his chamber and promoting investment opportunities in Sri Lanka.

The Sri Lankan Ambassador in Berlin, Mr. T.B. Maduwegedera who addressed the seminar gave an update on the island’s political situation. Among those present was Dr. Michael Schmidt, former German Ambassador in Sri Lanka who has played a key role in strengthening ties between the two countries.

The BOI delegation which also comprised Actg. Executive Director (Investment), Ms. Gowrie Rajapakse and Director (Investment Promotion), Ms. Nilupul de Silva held one-on-one meetings with German investors interested in areas such as tourism, food processing, light engineering and infrastructure, after the seminar.

The BOI team also held a roundtable discussion in Cologne with a core group of German investors. The meeting was organised by the office of the Consul General in Frankfurt. An inward delegation from Cologne is expected to visit Sri Lanka later this year.

A series of one-to-one meetings was held in Munich, with the assistance of the Honorary Consul, Mr. Hans Hammer on auto parts manufacturing (rubber-based), environmental logistics, manufacture of jewellery and infrastructure.

The delegation also held meetings with German companies that have already visited Sri Lanka, to finalize their investment plans.

The objectives of the BOI mission were to target investors in Germany directly and address some of the misconceptions about the business and investment climate in Sri Lanka, Mr. Ariyasinghe said. It was important to present correct information on Sri Lanka to key business leaders and senior German Chamber officials, as until recently Germany has been a leading European investor in Sri Lanka. The BOI is following up on the strong response of German investors to the mission and building up on the very positive experience of German investors already in Sri Lanka.