This was conveyed when Director Praful Kumar along with his delegation met with the Minister of Industry and Commerce, Rishad Bathiudeen in Colombo.
The Industry-led and industry-managed CII is India's second largest industry chamber with more than 9100 direct and over 300000 indirect membership of firms from 291 various national and regional bodies (private and public sectors, SMEs to multi nationals). CII is no stranger to Sri Lanka and its previous teams visiting Colombo met Minister Rishad Bathiudeen on several occasions.
"We are interested in securing large scale projects in Sri Lanka such as refineries, IT parks, desalinisation plants, pharmaceutical zones, container terminals and vocational training facilities. Many mechanisms are available in India for funding of such large projects overseas. We at CII can be a facilitator for such project funding in Sri Lanka as well. We can move in with funding from Indian Exim Bank. The Buyers’ Credit (BC) project funding mechanism of Indian Exim Bank is one such way,” Director Praful Kumar said.
In Buyers’ Credit, project execution is done by an Indian firm called the project exporter. Even though the fund recipient is an Indian company, the firms in the target country too benefit immensely. 75% of the material for the project needs to come from the Indian firm, but Sri Lankan contractors can supply the labour -and also the 25% materials in the BC project.
The benefit of this is that there is no limit for the dollar value of the project-it could be a low US $ one million or high US $ 500 million-or much more. The US $398 Mn project commenced in Ghana recently under BC by the Indian Exim bank and the project on a new road in Maldives at US $20 Mn are examples. Average project length is three years and it takes about three to six months for initial background work. High-value projects such as ports, bridges, highways, and IT parks are a good match for BC projects.
"Even though revenue generating projects are preferred for most BC projects, even social non-profit projects without revenues, too are possible. We can facilitate top Indian multinationals such as Reliance, Wipro, Tata, Aditya Birla etc to Sri Lanka in this if the projects are large scale," he said.
Meanwhile, since March 2018, Sri Lanka has been placed in the Positive List of Countries for Buyer’s Credit under India’s National Export Insurance Account (NEIA) by India’s Export Credit Guarantee Corporation (ECGC).
The main investment sectors that Indian FDIs in are tourism & hotels, petroleum-retail, manufacturing, real estate, telecommunication, banking and financial services. Among investments by Sri Lankan companies in India are apparel (Brandix, MAS holdings), furniture (Damro), energy (LTL Holdings), and in freight servicing and logistics (DRH Logistics and Freight Links International).