19th November 2009, www.lankabusinessonline.com
A private equity group which is launching a 10-year closed-end fund in Sri Lanka said it will also start a listed stock vehicle with a shorter term horizon to invest in undervalued companies.
Leopard Sri Lanka, a part of Leopard Capital (Asia) which runs a 30 million US dollar private equity fund in Cambodia said it is targeting the Leopard Sri Lanka Value Fund for investors with a two year horizon.
The main Leopard Sri Lanka private equity fund will run for 10 years, with redemptions allowed only after 5-years.
Leopard Sri Lanka chairman Ranjith Fernando says there are smaller companies in the stock market or "hidden gems" which are trading at a discount to market.
Foreign investors usually invest in large liquid firms which are among the largest capitalized firms in the Colombo Stock Exchange, whose shares are liquid and easy to exit.
The Leopard listed equity firm will permit redemptions after two years.
"It is not a fund to track the index or buy the blue chips, our strategy is to find overlooked companies which our colleagues will research and unlock their value," says Douglas Clayton, who founded Leopard Capital Asia in 2007.
Leopard Sri Lanka has as managing partners Nirosh de Silva and G Ramanan, two Sri Lanka based with long year's of experience in the island's capital markets. De Silva had founded Orion Capital, a Colombo based investment firm.
The Leopard Sri Lanka Value Fund would be registered in the Cayman Islands.
19 November 2009
Singapore Investor Forum by SEC of Sri Lanka Targets Fund Managers in Singapore to Promote Investment
18th November 2009, www.lankabusinessonline.com
Sri Lanka market watchdog hosts Singapore investor forum An investor forum targeting fund managers in Singapore to promote investment in Sri Lanka's capital markets will be held on November 26, the island's market watchdog said.
"With the end of the war and t
he return of investor confidence, Sri Lanka is poised to enter an era of economic growth and prosperity," the Securities and Exchange Commission said.
"In the light of these favourable developments this investor forum marks the first step in a series of events targeted at promoting capital market investments."
SEC chairman Udayasri Kariyawasam said in a statement that about 125 participants have signed up, above a targeted 100, showing that there was renewed interest in the country.
The forum is organized by the SEC and the High Commission of Sri Lanka in Singapore.
A luncheon meeting will be held on November 26 at the Fullerton Hotel where John Keells Holdings PLC, Commercial Bank of Ceylon PLC and National Development Bank PLC will make presentations.
The statement said Sri Lanka's deputy finance minister Sarath Amunugama, senior officials of the SEC, CSE, broking firms and custodian banks will attend the conference.
Sri Lanka market watchdog hosts Singapore investor forum An investor forum targeting fund managers in Singapore to promote investment in Sri Lanka's capital markets will be held on November 26, the island's market watchdog said.
"With the end of the war and t
he return of investor confidence, Sri Lanka is poised to enter an era of economic growth and prosperity," the Securities and Exchange Commission said."In the light of these favourable developments this investor forum marks the first step in a series of events targeted at promoting capital market investments."
SEC chairman Udayasri Kariyawasam said in a statement that about 125 participants have signed up, above a targeted 100, showing that there was renewed interest in the country.
The forum is organized by the SEC and the High Commission of Sri Lanka in Singapore.
A luncheon meeting will be held on November 26 at the Fullerton Hotel where John Keells Holdings PLC, Commercial Bank of Ceylon PLC and National Development Bank PLC will make presentations.
The statement said Sri Lanka's deputy finance minister Sarath Amunugama, senior officials of the SEC, CSE, broking firms and custodian banks will attend the conference.
18 November 2009
SL Central Bank Interest Rate Cut, A 5 Year Low to Boost Growth
18th November 2009, www.bloomberg.com, By Anusha Ondaatjie
Sri Lanka’s central bank cut its benchmark interest rates to a five-year low to spur credit demand and support a recovery in the island’s economy.
The Central Bank of Sri Lanka lowered the reverse repurchase rate to 9.75 percent from 10.5 percent, according to a statement on the Colombo-based bank’s Web site today. The repurchase rate was reduced to 7.5 percent from 8 percent.
Sri Lanka will conduct monetary policy “cautiously” to keep inflation below 10 percent while sustaining an economic recovery after the e
nd of a 26-year civil war, the central bank said in a publication this month. Consumer prices in the capital, Colombo, rose 1.4 percent in October from a year earlier, the fastest pace in five months.
“Risks to inflation are biased to the upside, on account of commodity price movements and an improved growth outlook,” said Prakriti Sofat, an economist at Barclays Plc in Singapore.
Central Bank Governor Nivard Cabraal said Oct. 6 that consumer prices will probably rise as much as 5 percent this year, and between 5 percent and 6 percent in 2010. The central bank has room to cut interest rates if inflation remains “persistently low,” he said.
Cabraal had slashed borrowing costs to spur spending and make up for slowing exports.
“Although inflation is expected to rise moderately in 2010 due to the gradual decline of the base effect of low inflation in 2009, it is expected to remain relatively subdued,” the central bank said in its statement today.
Civil War
The central bank expects the island’s $41 billion economy to grow as much as 6 percent next year after expanding about 3.5 percent in 2009, helped by rebuilding efforts after the government defeated the separatist Liberation Tigers of Tamil Eelam rebels in May.
The end of Sri Lanka’s civil war has buoyed Colombo’s All- Share Index, which has outperformed all other benchmarks in Asia this year with a 98 percent gain.
Mark Mobius, who oversees about $25 billion of emerging market assets as chairman of Templeton Asset Management Ltd., told Bloomberg News last week that he is seeking private equity or strategic investments on the island.
The central bank on Sept. 11 lowered the reverse repurchase rate to 10.5 percent from 11 percent, and cut the repurchase rate to 8 percent from 8.5 percent.
‘Appropriate Measures’
The central bank said today it will take “appropriate measures to reduce the level of excess liquidity to a more desirable level.”
The bank said market interest rates had dropped amid easing monetary policy “albeit with a time lag,” while commercial banks’ lending rates had also started to decline sharply.
The government will maintain fiscal and monetary stimulus through 2010 to stoke an economic recovery, Deputy Finance Minister Sarath Amunugama said Nov. 9.
President Mahinda Rajapaksainstructed state banks to slash lending rates by about 7 percentage points from Oct. 28 to government employees, farmers, small businesses and industries including fisheries and tourism.
The International Monetary Fund said on Nov. 9 the release of a second payment in its $2.6 billion loan to Sri Lanka indicates a strong performance and fiscal commitment from the South Asian island economy.
The central bank this month began draining funds from the local financial system using currency swaps after auctioning its own securities for the first time in October to absorb surplus funds. Excess money typically fuels inflation.
Sri Lanka’s foreign reserves have risen to unprecedented levels since the IMF loan was approved in July and the end of the civil war.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net.
Sri Lanka’s central bank cut its benchmark interest rates to a five-year low to spur credit demand and support a recovery in the island’s economy.
The Central Bank of Sri Lanka lowered the reverse repurchase rate to 9.75 percent from 10.5 percent, according to a statement on the Colombo-based bank’s Web site today. The repurchase rate was reduced to 7.5 percent from 8 percent.
Sri Lanka will conduct monetary policy “cautiously” to keep inflation below 10 percent while sustaining an economic recovery after the e
nd of a 26-year civil war, the central bank said in a publication this month. Consumer prices in the capital, Colombo, rose 1.4 percent in October from a year earlier, the fastest pace in five months.“Risks to inflation are biased to the upside, on account of commodity price movements and an improved growth outlook,” said Prakriti Sofat, an economist at Barclays Plc in Singapore.
Central Bank Governor Nivard Cabraal said Oct. 6 that consumer prices will probably rise as much as 5 percent this year, and between 5 percent and 6 percent in 2010. The central bank has room to cut interest rates if inflation remains “persistently low,” he said.
Cabraal had slashed borrowing costs to spur spending and make up for slowing exports.
“Although inflation is expected to rise moderately in 2010 due to the gradual decline of the base effect of low inflation in 2009, it is expected to remain relatively subdued,” the central bank said in its statement today.
Civil War
The central bank expects the island’s $41 billion economy to grow as much as 6 percent next year after expanding about 3.5 percent in 2009, helped by rebuilding efforts after the government defeated the separatist Liberation Tigers of Tamil Eelam rebels in May.
The end of Sri Lanka’s civil war has buoyed Colombo’s All- Share Index, which has outperformed all other benchmarks in Asia this year with a 98 percent gain.
Mark Mobius, who oversees about $25 billion of emerging market assets as chairman of Templeton Asset Management Ltd., told Bloomberg News last week that he is seeking private equity or strategic investments on the island.
The central bank on Sept. 11 lowered the reverse repurchase rate to 10.5 percent from 11 percent, and cut the repurchase rate to 8 percent from 8.5 percent.
‘Appropriate Measures’
The central bank said today it will take “appropriate measures to reduce the level of excess liquidity to a more desirable level.”
The bank said market interest rates had dropped amid easing monetary policy “albeit with a time lag,” while commercial banks’ lending rates had also started to decline sharply.
The government will maintain fiscal and monetary stimulus through 2010 to stoke an economic recovery, Deputy Finance Minister Sarath Amunugama said Nov. 9.
President Mahinda Rajapaksainstructed state banks to slash lending rates by about 7 percentage points from Oct. 28 to government employees, farmers, small businesses and industries including fisheries and tourism.
The International Monetary Fund said on Nov. 9 the release of a second payment in its $2.6 billion loan to Sri Lanka indicates a strong performance and fiscal commitment from the South Asian island economy.
The central bank this month began draining funds from the local financial system using currency swaps after auctioning its own securities for the first time in October to absorb surplus funds. Excess money typically fuels inflation.
Sri Lanka’s foreign reserves have risen to unprecedented levels since the IMF loan was approved in July and the end of the civil war.
To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net.
17 November 2009
Sri Lanka Cultivates Mannar ‘Rice Bowl’ After the Defeat of Rebels, Central Bank Predicts Economy to Grow by 6 Percent in 2010
17th November 2009, www.bloomberg.com, By Paul Tighe
Sri Lanka said it is cultivating the rice-producing area in Mannar after clearing mines from the northwestern region captured from the Liberation Tigers of Tamil Eelam before the group’s defeat in May.
The mine clearing allowed 7,000 additional acres (2,833 hectares) to be cultivated recently and another 7,000 acres
will be converted for rice growing once water storage levels rise, the government said on its Web site, citing Major General G.A. Chandrasiri, the governor of Northern Province.
The so-called Mannar “Rice Bowl” produced a record harvest in 1991 before falling to 23rd out of the 27 rice- growing areas listed by the government before the region was captured from the Tamil Tigers in June 2008.
The LTTE’s 26-year fight for a separate Tamil homeland in Sri Lanka’s north and east ended in May when the last Tamil Tiger fighters were defeated in a battle in the northeast.
While the government forecasts economic growth of about 3.5 percent this year as the country rebuilds after the war, Sri Lanka and other Asian rice growers may have reduced rice harvests because of late monsoon rains, according to the United Nations Food and Agricultural Organization.
World rice production may fall 3 percent to 668 million metric tons this year, from a record last year, the FAO said last month. Asia’s output may drop 4 percent to 601 million tons this year from a year earlier, it said.
Sri Lanka’s central bank forecasts that the island’s $41 billion economy will grow as much as 6 percent in 2010.
Fertile Fields
The Defense Ministry said soldiers captured 120 square kilometers (46 square miles) of land in the Mannar district in June last year, saying at the time the area “mainly consists of the island’s most fertile paddy fields.”
An estimated 1.5 million mines and unexploded ordnance contaminated 500-square kilometers of the north when the war ended, the army said last month.
About 65 percent of that area is inhabited by civilians and 25 percent is agricultural land, Lieutenant General Jagath Jayasuriya, the country’s army commander, told a seminar in the capital, Colombo.
President Mahinda Rajapaksa’s government has cited the need to clear mines and ensure security in the north as a reason for delaying the release of more than 280,000 mainly Tamil civilians taken into transit camps when the war ended.
More than half of the refugees have been settled in their areas of origin, leaving 137,000 in the centers, the government said two days ago.
Resettlement Program
The resettlement program may be completed by the end of January next year, Sri Lanka said two days ago. About 28,000 people have been returned to homes in the Kilinochchi district in the north, the Defense Ministry said. The area was heavily mined as the LTTE had its headquarters in Kilinochchi town.
The UN, U.S. and U.K. have called on the government to allow the refugees to leave as soon as possible. John Holmes, the UN under-secretary-general for humanitarian affairs and emergency relief coordinator, begins a two-day visit to the country today to assess progress in the resettlement program.
The LTTE’s international network still operates and peace in the country won’t be secured until it’s dismantled, Defense Secretary Gotabaya Rajapaksa said at the weekend.
Countries criticizing Sri Lanka are expecting changes “to happen overnight,” the secretary said.
To contact the reporter on this story: Paul Tighe in Sydney at ptighe@bloomberg.net.
Image: Giant's Tank, Mannar
Sri Lanka said it is cultivating the rice-producing area in Mannar after clearing mines from the northwestern region captured from the Liberation Tigers of Tamil Eelam before the group’s defeat in May.
The mine clearing allowed 7,000 additional acres (2,833 hectares) to be cultivated recently and another 7,000 acres
will be converted for rice growing once water storage levels rise, the government said on its Web site, citing Major General G.A. Chandrasiri, the governor of Northern Province.The so-called Mannar “Rice Bowl” produced a record harvest in 1991 before falling to 23rd out of the 27 rice- growing areas listed by the government before the region was captured from the Tamil Tigers in June 2008.
The LTTE’s 26-year fight for a separate Tamil homeland in Sri Lanka’s north and east ended in May when the last Tamil Tiger fighters were defeated in a battle in the northeast.
While the government forecasts economic growth of about 3.5 percent this year as the country rebuilds after the war, Sri Lanka and other Asian rice growers may have reduced rice harvests because of late monsoon rains, according to the United Nations Food and Agricultural Organization.
World rice production may fall 3 percent to 668 million metric tons this year, from a record last year, the FAO said last month. Asia’s output may drop 4 percent to 601 million tons this year from a year earlier, it said.
Sri Lanka’s central bank forecasts that the island’s $41 billion economy will grow as much as 6 percent in 2010.
Fertile Fields
The Defense Ministry said soldiers captured 120 square kilometers (46 square miles) of land in the Mannar district in June last year, saying at the time the area “mainly consists of the island’s most fertile paddy fields.”
An estimated 1.5 million mines and unexploded ordnance contaminated 500-square kilometers of the north when the war ended, the army said last month.
About 65 percent of that area is inhabited by civilians and 25 percent is agricultural land, Lieutenant General Jagath Jayasuriya, the country’s army commander, told a seminar in the capital, Colombo.
President Mahinda Rajapaksa’s government has cited the need to clear mines and ensure security in the north as a reason for delaying the release of more than 280,000 mainly Tamil civilians taken into transit camps when the war ended.
More than half of the refugees have been settled in their areas of origin, leaving 137,000 in the centers, the government said two days ago.
Resettlement Program
The resettlement program may be completed by the end of January next year, Sri Lanka said two days ago. About 28,000 people have been returned to homes in the Kilinochchi district in the north, the Defense Ministry said. The area was heavily mined as the LTTE had its headquarters in Kilinochchi town.
The UN, U.S. and U.K. have called on the government to allow the refugees to leave as soon as possible. John Holmes, the UN under-secretary-general for humanitarian affairs and emergency relief coordinator, begins a two-day visit to the country today to assess progress in the resettlement program.
The LTTE’s international network still operates and peace in the country won’t be secured until it’s dismantled, Defense Secretary Gotabaya Rajapaksa said at the weekend.
Countries criticizing Sri Lanka are expecting changes “to happen overnight,” the secretary said.
To contact the reporter on this story: Paul Tighe in Sydney at ptighe@bloomberg.net.
Image: Giant's Tank, Mannar
16 November 2009
Visit Lanka 2011 to Woo One Million Visitors
16th November 2009, www.dailynews.lk By Shirajiv Sirimane in London
A series of new promotional techniques would be used to woo one million visitors to Sri Lanka for the ‘Visit Lanka 2011’ program.
Sri Lanka Tourism Promotions Bureau, Director General Dillip Mudadeniya speaking to Daily News Business after the closing of the four day World Tourism Market said that they would be targeting airline crews all over the world.
“Airline staff all over the world gets free tickets to travel to any destination and we want to promote S
ri Lanka to them for their vacation,” he said. “There are over four million airline staff in the world who receive over eight million free tickets per year to travel to any destination.
“We hope to work with SriLankan airlines in this promotion,” he said.
Mudadeniya said that they are looking at the option to offer one free night for this special airline staff package as a value addition to attract them to Sri Lanka. Sri Lanka Tourism would also launch special programs with international travel agents, tour operators and especially with the media by offering them Familiarization (FAM) tours.
Sri Lanka Tourism also hopes to have a special post-war marketing campaign.
On the participation of the WTM he said that this was Sri Lanka’s biggest delegation for the WTM as the companies want to market themselves exploiting the end of the war.
“WTM is the second largest global tourism global gathering and it opens doors not only for the British sector but to over 200 countries that participate in the event and participation of the event is an investment for the future,” he said.
Minister of Tourism Promotion, Faiszer Mustapha said that President Mahinda Rajapaksa was keen on the promotion of tourism SME sector and the Ministry offered to bear 90 percent of the cost of the participating SMEs.
Palace Hotel Negombo, Director Marion Fernadopulle said that they are participating in the event for the first time and they are doing so since they had to pay only 10 percent of the cost.
“We must thank the Government for this move as the hotel has now got invaluable international exposure,” he said.
Image: Dillip Mudadeniya with Hiran Cooray at the WTM. Picture by Shirajiv Sirimane
A series of new promotional techniques would be used to woo one million visitors to Sri Lanka for the ‘Visit Lanka 2011’ program.
Sri Lanka Tourism Promotions Bureau, Director General Dillip Mudadeniya speaking to Daily News Business after the closing of the four day World Tourism Market said that they would be targeting airline crews all over the world.
“Airline staff all over the world gets free tickets to travel to any destination and we want to promote S
ri Lanka to them for their vacation,” he said. “There are over four million airline staff in the world who receive over eight million free tickets per year to travel to any destination.“We hope to work with SriLankan airlines in this promotion,” he said.
Mudadeniya said that they are looking at the option to offer one free night for this special airline staff package as a value addition to attract them to Sri Lanka. Sri Lanka Tourism would also launch special programs with international travel agents, tour operators and especially with the media by offering them Familiarization (FAM) tours.
Sri Lanka Tourism also hopes to have a special post-war marketing campaign.
On the participation of the WTM he said that this was Sri Lanka’s biggest delegation for the WTM as the companies want to market themselves exploiting the end of the war.
“WTM is the second largest global tourism global gathering and it opens doors not only for the British sector but to over 200 countries that participate in the event and participation of the event is an investment for the future,” he said.
Minister of Tourism Promotion, Faiszer Mustapha said that President Mahinda Rajapaksa was keen on the promotion of tourism SME sector and the Ministry offered to bear 90 percent of the cost of the participating SMEs.
Palace Hotel Negombo, Director Marion Fernadopulle said that they are participating in the event for the first time and they are doing so since they had to pay only 10 percent of the cost.
“We must thank the Government for this move as the hotel has now got invaluable international exposure,” he said.
Image: Dillip Mudadeniya with Hiran Cooray at the WTM. Picture by Shirajiv Sirimane
Sri Lanka Micro Finace Network Extensive with over 26mn Accounts and 126bn Deposits
16th November 2009, www.dailynews.lk, By Harshini Perera
Microfinance providers have an extensive network in the country with over 10,800 outlets and the SANASA Movement has the largest number of active outlets followed by NGOs, as revealed in a nationwide survey of microfinance institutions in Sri Lanka. This was published by the GTZ-ProMis (Promotion of the Microfinance Sector) and the German Technical Cooperation GmbH in Sri Lanka.
According to the report, traditional microfinance products are offered by a large number of microfinance Institutions. A broader range of financial services is offered such as saving, pawning, leasing and insurance and pension products by microfinance institutions. All Samurdhi Bank Societies (SBS), Thrift and Credit Cooperative Societies (TCCs), Cooperative Rural Banks (CRBs), Regional Development Banks (RDBs) and banks as well as 89 percent of the NGO MFIs and 60 percent of finance companies offer savings and deposits products.
Microfinance providers covered by the survey have reported a total of over Rs. 126 billion in volume outstanding of savings and deposits and over 26 million savings accounts. A large number of microfinance providers (95 percent of NGOs, 92 percent of CRBs, 86 percent TCCs and banks, 83 percent of RDBs and 64 percent of SANASA Secondary Unions) have said they offer complementary non-financial services to their microfinance clients.
Many microfinance providers focus extensively on savings and do not fully exploit the resources thus mobilized to extend credit to finance the income generating activities of their microfinance clients. The ratio of loans to savings is one to 2.6 in terms of volume outstanding and one to 5.9 in terms of number of accounts.
According to the report, the microfinance sector in Sri Lanka consists of a diverse range of institutions which do not fall under the purview of a single authority and there is currently no single and up-to-date database on these institutions. The Sri Lankan microfinance market seems to be to a certain extent conservative, focusing more on the proliferation of variations of the same traditional products, lacking innovative approaches which could overcome the inherent barriers in access to microfinance.
Microfinance providers have an extensive network in the country with over 10,800 outlets and the SANASA Movement has the largest number of active outlets followed by NGOs, as revealed in a nationwide survey of microfinance institutions in Sri Lanka. This was published by the GTZ-ProMis (Promotion of the Microfinance Sector) and the German Technical Cooperation GmbH in Sri Lanka.
According to the report, traditional microfinance products are offered by a large number of microfinance Institutions. A broader range of financial services is offered such as saving, pawning, leasing and insurance and pension products by microfinance institutions. All Samurdhi Bank Societies (SBS), Thrift and Credit Cooperative Societies (TCCs), Cooperative Rural Banks (CRBs), Regional Development Banks (RDBs) and banks as well as 89 percent of the NGO MFIs and 60 percent of finance companies offer savings and deposits products.
Microfinance providers covered by the survey have reported a total of over Rs. 126 billion in volume outstanding of savings and deposits and over 26 million savings accounts. A large number of microfinance providers (95 percent of NGOs, 92 percent of CRBs, 86 percent TCCs and banks, 83 percent of RDBs and 64 percent of SANASA Secondary Unions) have said they offer complementary non-financial services to their microfinance clients.
Many microfinance providers focus extensively on savings and do not fully exploit the resources thus mobilized to extend credit to finance the income generating activities of their microfinance clients. The ratio of loans to savings is one to 2.6 in terms of volume outstanding and one to 5.9 in terms of number of accounts.
According to the report, the microfinance sector in Sri Lanka consists of a diverse range of institutions which do not fall under the purview of a single authority and there is currently no single and up-to-date database on these institutions. The Sri Lankan microfinance market seems to be to a certain extent conservative, focusing more on the proliferation of variations of the same traditional products, lacking innovative approaches which could overcome the inherent barriers in access to microfinance.
Madhya Pradesh Keen to Invest in Sri Lanka, Calls for Direct Flights Between the State Capital Bhopal and Colombo, Sri Lanka
15th November 2009, www.lankabusinessonline.com
Firms from the central Indian state of Madhya Pradesh have showed interest in investing in Sri Lanka and called for direct flights between the state capital Bhopal and Colombo, officials said.
Investors were keen on developing medical services and education and investing in telecommunica
tions, renewable energy and re-building infrastructure in the island's north and east after the ethnic war, they said.
Madhya Pradesh is a state almost five times larger in area than Sri Lanka with three times the population of the island.
Indian businesses from the state already have connections with the island, exporting mill cloth amounting to 800,000 dollars a year to Sri Lanka.
Apparel is Sri Lanka's main industrial export.
The state also draws tourists from Sri Lanka, especially Buddhist pilgrims visiting holy sites such as Sanchi.
Pratap Verma, Secretary of the Bhopal Federation of Madhya Pradesh Chambers of Commerce & Industry,
has asked Sri Lanka to start flights from Colombo to Bhopal.
The call came during a recent visit by Dinesh Gunawardena, Sri Lanka's Minister of Urban Development and Sacred area Development, who addressed potential investors in Mumbai and Bhopal.
Verma said Bhopal will become an international airport by June 2010 and have landing facilities for Boeing 747, Boeing 737-80 and Airbus 320 aircraft.
Sri Lanka can benefit by having daily flights between Bhopal, Colombo and Bangkok to cater to Sri Lankan as well as Thai and Japanese Buddhist pilgrims visiting Sanchi and other Buddhist sites in India.
Sri Lanka is exploring the possibility of a twice-weekly flight at least during the pilgrimage season connecting Colombo, Bhopal and Lumbini, a Buddhist site in Nepal, near the Indian border, officials said.
Firms from the central Indian state of Madhya Pradesh have showed interest in investing in Sri Lanka and called for direct flights between the state capital Bhopal and Colombo, officials said.
Investors were keen on developing medical services and education and investing in telecommunica
tions, renewable energy and re-building infrastructure in the island's north and east after the ethnic war, they said.Madhya Pradesh is a state almost five times larger in area than Sri Lanka with three times the population of the island.
Indian businesses from the state already have connections with the island, exporting mill cloth amounting to 800,000 dollars a year to Sri Lanka.
Apparel is Sri Lanka's main industrial export.
The state also draws tourists from Sri Lanka, especially Buddhist pilgrims visiting holy sites such as Sanchi.
Pratap Verma, Secretary of the Bhopal Federation of Madhya Pradesh Chambers of Commerce & Industry,
has asked Sri Lanka to start flights from Colombo to Bhopal.The call came during a recent visit by Dinesh Gunawardena, Sri Lanka's Minister of Urban Development and Sacred area Development, who addressed potential investors in Mumbai and Bhopal.
Verma said Bhopal will become an international airport by June 2010 and have landing facilities for Boeing 747, Boeing 737-80 and Airbus 320 aircraft.
Sri Lanka can benefit by having daily flights between Bhopal, Colombo and Bangkok to cater to Sri Lankan as well as Thai and Japanese Buddhist pilgrims visiting Sanchi and other Buddhist sites in India.
Sri Lanka is exploring the possibility of a twice-weekly flight at least during the pilgrimage season connecting Colombo, Bhopal and Lumbini, a Buddhist site in Nepal, near the Indian border, officials said.
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