New Govt moves swiftly to attract Saudi investments strengthening bilateral ties
By: Staff Writer
October 22, Colombo (LNW): The new administration headed by President Anura Kumara Dissanayake is set to take prompt action to further enhance bilateral relations making maximum use of the general agreements signed with Saudi Arabia for cooperation in the economic, trade, investment, scientific, artistic, cultural, youth and sports fields contributed to the formation of a joint committee between the two countries.
It aims to strengthen and expand the existing bilateral relations between Sri Lanka and Saudi Arabia.
Efforts will focus on making the most of the agreements signed between the two nations, particularly in the fields of economic cooperation, trade, investment, science, culture, youth, and sports. T
hese agreements have contributed to the formation of a joint committee aimed at advancing mutual goals.
In line with these efforts, Sri Lanka is committed to adhering to the Double Tax Avoidance Agreement signed in January 2023, the Memorandum of Understanding (MoU) on Political Consultations from May 2023, and the MoU on the Promotion of Direct Investment signed in April 2024.
These treaties will guide future collaborations and investment regulations between the two nations.
During a recent meeting in Colombo with the Saudi Ambassador, Khalid Hamoud Alkahtani, President Dissanayake informed him that Sri Lanka’s government is actively working on drafting new regulations related to investment.
A committee, which includes officials from the Sri Lanka Investment Development Authority, has been established to review these regulations. Once finalized, these guidelines will be shared with the Saudi Embassy.
The joint committee’s first meeting took place in Riyadh from May 21-22, 2023. The primary goal of the meeting was to bolster cooperation in areas of mutual interest.
It is anticipated that by implementing the outcomes of these discussions, trade and investment relations between Sri Lanka and Saudi Arabia will be significantly enhanced.
Saudi Arabia has played a pivotal role in supporting Sri Lanka’s development efforts. The Saudi Fund for Development has financed numerous projects in Sri Lanka, including education, irrigation, agriculture, and infrastructure initiatives.
Notable projects include the establishment of a medical faculty at the University of Sabaragamuwa, the development of the Wayamba University Township, and the construction of the Kurinchakerni Bridge.
Additionally, Saudi Arabia has extended financial aid for constructing 500 housing units in Norachcholai in Sri Lanka’s Eastern province, assisting those affected by the 2004 Tsunami disaster. Moreover, the Kingdom has offered free scholarships to over 450 Sri Lankan students at Saudi universities.
Humanitarian assistance from Saudi Arabia has also been significant. The King Salman Humanitarian Aid and Relief Center has launched 18 projects in Sri Lanka, focusing on food security, health, and charitable works, with a total investment of over USD 15 million.
Next month, the center is set to implement a free medical campaign called “Combat against Blindness in Sri Lanka,” to be held in Kattankudy and Walasmulla.
In terms of labor relations, around 200,000 Sri Lankan workers are currently employed in Saudi Arabia, predominantly in sectors such as construction, healthcare, and hospitality.
With large-scale development projects underway in Saudi Arabia, this number is expected to grow in the coming years.
A technical committee consisting of representatives from both countries regularly meets to facilitate the recruitment and placement of Sri Lankan workers in the Kingdom.
The collaborative efforts between Sri Lanka and Saudi Arabia reflect a strong partnership focused on mutual economic growth, development projects, and humanitarian initiatives.
This continued cooperation is set to benefit both nations significantly in the years ahead.
