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EU asked by President to invest in Sri Lanka to balance ‘regional hegemony’

ECONOMYNEXT – Sri Lanka’s President Gotabaya Rajapaksa has asked the European Union to look positively and invest in the island and contribute to the economic progress in a bid do rebalance ‘regional hegemony’.

The best way to overcome regional hegemony would be to assist small countries such as Sri Lanka to develop and move forward at the same pace as developed countries, the President had told a delegation of EU envoys who met him.

The EU envoy in Colombo, Denis Chaibi, The Kingdom of Netherlands envoy Tanja Gonggrijp, envoy of Romania Victor Chiujdea, envoy of France Eric Lavertu and Ambassador of Germany Jorn Rohde Deputy Head of Mission of the Embassy of Italy Allegra Baistrochchi, had called on the Presdient

He had called on the EU to look at Sri Lanka positively as an investment hub.

There had been concerns from India and the West about growing Chinese involvement in Sri Lanka.

China was initially financing infrastructure with debt. But several Chinese state companies have invested in ports, a sea reclamation project and is also expected to invest in energy and factory industry.

Sri Lanka however has chronic monetary instability, a constantly renewing record in expropriation, reversals towards control oriented policy as well as sudden interventions that provides a fluid foundation for private companies to operate, analysts have said. (Colombo/Jan01/2020)

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  1. I think the President GR should realize that none would want to invest in Sri Lanka unless and until macroeconomic stability is restored in the nation. Not only foreigners would not want to invest but even locals would not invest here.
    It appears President is saying the right things to EU countries and India and US in trying to convince them to invest in the nation but unlike China all most all these countries the capital belongs to private entities and they would not invest unless they see risk free investment opportunities here, as China investments here are mostly govt centric and it has a grand design under their belt initiative.

    While RW was not supported by these developed countries when he was running the govt and it is very unlikely these countries will come forward to invest here as , apart from micro economic stability, the govt is back paddling on all most all what the previous govt did , however much the govt was weaker, to create a conducive investment environment in terms of democratic governance creating independent judiciary, independent govt institutions etc. and most importantly to try and create a secular country with important ingredients of inclusivity.

    I am hoping this new President will realize hard way, what needs to be done to entice foreign investors other than Chinese investors as otherwise it is inevitable that the govt will have to rely on Chinese investment with all the consequences that it may have to endure as he has rightly cautioned the EU delegates in his discussion.

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