BizPAct 2009 Invest in Sri Lanka Symposium

This first ever event of its kind took place between 25th-29th June 2009.
The event provided an opportunity to bring together SME entrepreneurs from the regions of Sri Lanka and investors of all varieties.
The symposium also included a programme of regional visits to the East and South of the country, enabling potential investors to see conditions on the ground and to meet with local entrepreneurs and discuss the opportunities and challenges.

Over 200 people attended the initial day held at the BMICH in Colombo and about 60 people participated in the regional tours that were organised.

Some of the projects featured on this website were presented for the first time at this event.

The pictures below show some of the entrepreneurs who spoke at the symposium, along with some of the other speakers and contributors on the first day:-

The following are extracts from the External Evaluation that was carried out:

BizPact – Investment in Sri Lankan Business was seen as a pioneering conference because of its focus on developing small and medium scale enterprises (SMEs). Many of the participants felt that the conference tried to focus on an aspect that was widely neglected even by the Government of Sri Lanka. Therefore all participants, especially the Regional Chambers of Commerce hailed the conference as a step in the right direction.

The symposium, regional visits and wrap-up conference were geared to achieve the objectives of BizPact. BizPact successfully disseminated the message that stability and economic prosperity in the regions were essential elements in creating a just and sustainable peace in Sri Lanka. The development gap between the Western Province and the rest of the island was highlighted to encourage more investments to the regions. The event also raised the profile of BPA and the Regional Chambers of Commerce. Local, diaspora and foreign investors were given the opportunity to interact with regional businesses and to understand in an intimate way the opportunities and challenges of working with regional SMEs.

While the symposium offered investors an occasion to explore regional business opportunities it was evident that there was some level of mismatch between the expectations of some investors and the regional business opportunities. Some foreign and diaspora investors were interested in large-scale investments rather than SMEs. Representatives of Chambers of Commerce also commented that the relatively low financial assistance needed by SMEs was not attractive to foreign and diaspora investors. Therefore it was evident that some foreign and diaspora investors keen on capitalizing on new opportunities in the East and the North piggybacked on BizPact to explore options of investments, including large-scale investments.

There was concerted opinion among the diaspora investors that Sri Lankan SMEs did not understand the realities of the global markets. Many were of the view that SMEs manufactured products without taking into consideration the marketability of the product.
Quality and quantity assurances also became pivotal factors. Investors pointed out that many Sri Lankan products did not have quality assurances required to export to foreign markets and as a result was not able to expand into new overseas markets. Diaspora investors pointed out that there was an urgent need to build the capacities of Regional Chambers of Commerce and improve their profiles.

All diaspora investors were keen to assist regional businesses. A few investors said that they were interested in providing financial support to SMEs mainly through their CSR programs. Many were also keen to mentor regional businesses, work with local institutions and link regional businesses with new global markets. Investors were also keen to introduce new investors, identify new business opportunities, conduct workshops for Chambers to build their capacity, provide professional services, organize diaspora focus groups to test new products, provide advice and provide micro-finance for SMEs.

Foreign and diaspora investors said that they made contact with potential business partners from the regions and that they got a realistic understanding of the business climate in Sri Lanka by attending the symposium. In addition the regional visits had enabled investors to understand practical mechanisms of investing in the regions and empathize with challenges facing regional businesses.
Investors identified the lack of adequate infrastructure, excessive bureaucracy and corruption as the main factors that deterred investment in Sri Lanka. The lack of creative ideas and politicization of the process of development were highlighted as deterrents at the regional level. Government support and the presence of natural resources were mentioned as factors that encouraged investment in Sri Lanka.
It was evident that conflict and context sensitivity were prioritized through out the project
however BPA must focus more strongly on ‘sustainable development’ and highlight to
investors the importance of focusing on people and planet as well as profit, when making
investments.

BizPact –Investment Sri Lanka reflected post-war Sri Lanka’s enthusiasm to get back to business. However the stories of multi-ethnic communities working together to develop Sri Lanka were juxtaposed with concerns about the IDPs in the North, the security restrictions in the Northwest and the high levels of military presence in the East. It was evident that addressing these concerns would bolster investor confidence in Sri Lanka. Most investors were of the opinion that economic prosperity in the regions would bring just, sustainable peace to Sri Lanka. They were of the view that engaging in commerce would create more employment opportunities, increase the standard of life and decrease frustrations and tensions among the communities.

BPA has successfully shouldered the responsibility to attract attention and investments to SMEs in the regions. The conference between 25th and 30th of June 2009 is the beginning of an arduous journey to work towards attaining just and sustainable peace in the regions through economic prosperity. It is essential that BPA, which represents regional SMEs redefine and fine-tune its flagship product – BizPact – and move forward to achieving its goals.