I have not ever shied distant from articulating my faith and confidence within the Sri Lankan economy, inboth the good times and bad. My significant investment in Asia Capitalis not the only example I can display to help my claim. It is a well known fact that I have been steadily investing in Sri Lanka through this final decade in prime industries such ashospitality, finance and even in conglomerates like Paul KeellsHoldings. But what I locate amusing and at times perplexing is how I am seen like a foreigner invading Sri Lankan territory, by regional businessmen, due to my substantial shareholding. I have repeatedly tried to explain that my roots are in Sri Lanka - grandfather Saravanamuthu Pillai migrated from Jaffna to the then British Malaya to work within the Malayan Railways within the early 1920s and I have grown up on stories of this pretty and brave island.
My wife is Sri Lankan and her family continues to live in Colombo. I have been visiting Sri Lanka since I was a young boy and think about it my ancestral home. My investments in Sri Lanka have always been created on the basis of my tough belief within the fundamentals of this country. And as anyone can see, I have been proved right once again, considering the remarkable conclusions posted by Asia Capital PLC of which I hold 87%. For this, I commend Mano Nanayakkara, Chairman and MD of Asia Capital and his team for their excellent work in resurrecting a business which was tottering on the brink of collapse - a job well done.
I very strongly know and I had spoke about this prior to - Sri Lanka has the potential to be an worldwide hub like Hong Kong, Singapore and perhaps even Dubai. All of them are natural geographical hubs on the map, together with the ability to grow and develop basically by virtue of being hubs. The nature of these hubs is such that no reason what happens, they have the ability to bounce return relatively quickly, subsequent to a negative turn. A key component within the success of tiny countries like Hong Kong and Singapore are its people. I can speak similar for Sri Lanka, as I look this tiny lake begin to rise like a shining star together with the heart of entrepreneurship bursting at its seams.
It is now time for Sri Lanka to gear itself for the next step; to model its business infrastructure to attract the right investors. The facts speak for themselves. The Sri Lankan economy was remarkably resilient in recent years despite the conflict. The country's GDP expanded by 7. 1 per cent year-over-year within first quarter, driven largely by its tough agriculture and services sectors, robust non-residential production and soaring tourism.
Despite the 26-year-old civil war and the ravages of natural disasters like the tsunami, Sri Lanka has registered a tough growth within first decade regarding the 21st century, averaging about 6. 4 per cent within the final six years and has a GDP of $48 billion with a per capita income of $5300. Notably, the nation's per capita income doubled in a period of about 5 years while war was raging!. A key factor behind this development and economic growth is government spending. The end regarding the civil war has opened up the north and east of Sri Lanka to increased crop production and has reduced the cost of food products and rapid development projects are receiving off on the ground, for example the construction regarding the massive Hambantota Port.
Most importantly, peace and expectations of rapid economic growth have already started attracting foreign investment. Final year Etisalat, UAE's largest telecom services provider divulged plans to invest approximately $163-million over six months to expand its 3G network in Sri Lanka. A little months ago, Minor International, Thailand's biggest motel operator, acquired a controlling stake in Kani Lanka Resort and amp; Spa, at an estimated US$ 22 million to take advantage of increased tourism to the island. Sri Lanka does not need any huge billboards to advertise its potential due to the fact that the whole world can look it, but businesses need an entry spot and a conduit to operate through. If these channels are blocked by dark brown tape and unnecessary regulations, the opportunity created in this final year should be all but lost.
We should also not forget the vast network regarding the Sri Lankan Diaspora that is spread throughout many countries, but has its roots firmly entrenched within the motherland. In recent times inflows of remittance Payments from Sri Lankan migrs living overseas are soaring and shall likely continue. The Diaspora are perfectly positioned to partner with Sri Lankan businesses, seeing to leave international. This not only helps smooth the path to business opportunities, but also helps forge cultural and aesthetic ties together with the brethren living outside the island. Speaking of culture, I was delighted to be component of a recent project by Asia Capital that helped showcase the land of my ancestors in all its Glory.
A pretty tea table pamphlet titled Glorious Jaffna, a pictorial representation regarding the splendors regarding the peninsula was place together by 3 talented employees of Asia Capital with our full support. We hope to use this pamphlet like a tool to raise funds for an learning project within the North. Regarding to the University Grants Commission UGC of Sri Lanka, the country's youth literacy rate stands at a remarkable 98%! The United Nations Development Project 2009 report on ranking of countries by literacy rates shows Sri Lanka at No. 94 with a literacy rate of 90. 8%, method ahead of its neighbour India at No.
149 with only a 66% literacy rate. The high literacy rates, little mortality rates and the steadily declining population growth, reflect the country's progress within the sphere of corporate development as well. We are now in a brand new year that is brimming with exciting opportunities and endless possibilities. Within the Asia Capital Annual Report 2010, its Chairman Mano Nanayakkara says that 2011 should be the year of consolidation, recovery and growth. The business is undertaking a restructuring exercise sequential to reposition itself as an investment firm.
I know that the Sri Lankan economic strategy should benefit by following this cue. 2011 should be a time for consolidation, for gathering up forces, marshalling energies and bringing together the many aspects that are compulsory for positioning Sri Lanka like an earth class economy. Entrepreneur businessman Vijay Eswaran is the founder of multimillion-dollar global conglomerate QI Group. Eswaran shall also be a philanthropist who has generously donated to multiple institutions in Sri Lanka, within providing the country's only paediatric laparoscopy mechanical system to date to the Lady Ridgeway Hospital. He is the majority shareholder of Asia Capital and a significant investor within the Colombo Stock Market.
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