The envoy of the island nation in Jeddah told Arab News that Sri Lanka is working to increase Saudi investment since Saudi assistance is considered as crucial to helping the country's economy recover.
Due to both poor economic management and the COVID-19 pandemic's effects, the island nation has been plunged into a serious financial crisis, leaving its citizens unable to pay for skyrocketing living expenses.
A roughly $3 billion bailout loan for Colombo was authorised by the IMF in March, but since it will take time for the nation to recover, Sri Lankan missions abroad have been seeking to entice more foreign investors to assist the country's devastated economy get back on track.
Saudi Arabian investment has been identified as a crucial component of Sri Lanka's ongoing recovery efforts, according to Falah Alhabshi Mowlana, Sri Lanka's consul general in Jeddah.
“Saudi investment is very important to Sri Lanka,” Mowlana told Arab News in an interview in Colombo over the weekend.
“This is the country that helped Egypt, Pakistan, etc during their economic depression. In this current situation, if Sri Lanka can attract Saudi investments it would play a huge role in the stability of the Sri Lankan economy.”
Mowlana stated that the tourism and energy industries likely have the greatest potential for Saudi investment and that the Board of Investment of Sri Lanka has been collaborating with the nation's foreign missions to draw in more international investors.
“(The) tourism sector is one of the best sectors that can attract Saudi investment … If the opportunities in Sri Lanka in this sector can be presented in a proper way to Saudi nationals that will immensely impact Foreign Direct Investment to Sri Lanka.”
Sri Lanka realigned its tactics and chose the Middle East as one of its top prospective markets when it named 2022 the "Visit Sri Lanka Year" to prioritise the tourist industry, placing particular hope on Saudi Arabia.
Mowlana claimed that Sri Lankan officials have maintained talks with top tour operators in Jeddah following the holding of numerous tourism promotions last year.
According to the envoy, Sri Lanka may benefit from Saudi Arabia's expanding electric vehicle market.
“They are in the position of expanding their production worldwide, including (to) Sri Lanka. We can say some examples such as ACWA power and Lucid Motors,” he said, referring to the Saudi energy giant and the electric carmaker backed by the Kingdom’s Public Investment Fund.
Foreign Minister Ali Sabry visited the Kingdom earlier in January to advance cooperation in connectivity, investment, and employment possibilities. Sri Lankan officials have been seeking to strengthen ties with Saudi Arabia over the past year.
As a special representative of President Ranil Wickremesinghe, Environment Minister Naseer Ahamed travelled to Riyadh in August of last year. The topic of his discussions there? Increasing energy cooperation.