Sri Lanka’s investment climate difficult, bureaucracy complex- Envoy

Sri Lankan tea is becoming more and more expensive in Turkiye, and the market is captured by Kenya

First, the market is small in comparison to other regional countries. Secondly, the bureaucracy is a little bit complex. It takes time 

By  Kelum Bandara  

In what appeared to be a wake-up call for the improvement of the business environment in Sri Lanka, Turkish Ambassador Semih Lutfu Turgut said yesterday that Sri Lanka’s investment climate is ‘difficult’ and bureaucracy is complex.  

At a roundtable discussion organized by Pathfinder Foundation, the Ambassador briefed the Turkish foreign policy and took questions from the participants including media representatives, diplomats and academics. Asked about his assessment of the investment climate, he said in a single- worded answer, “difficult”  

Asked for elaboration, he said, “First, the market is small in comparison to other regional countries. Secondly, the bureaucracy is a little bit complex. It takes time,”  

He cited that the migration of skilled workers is yet another problem Sri Lanka is facing at the moment.  

“There is an increasing problem. Your skilled manpower is going abroad. So, in the future, maybe in the near future, you are going to face labour problems in Sri Lanka,” he said.  

Making his remarks on bilateral relations, he said tourism is a key area witnessing improvements with people from both sides visiting each other. He said though the numbers are still ‘very small’, the trend is there.  “Tourism is one of the sectors that we should focus on. The other one is textile. There might be strategic partnerships between Turkish and Sri Lankan garment producers,” he said. “It’s a very complex and dynamic sector. So I’m sure that the companies will find a way to make strategic partnerships. Maybe some components are produced here. Some other components are produced in Turkey,” he said.  

Commenting on Sri Lanka’s tea trade, he said Sri Lankan tea products are becoming more and more expensive in Turkiye, and the market is captured by Kenya.  

“This is a negative trend on our bilateral relations, “he said.