U.S. Leads Investment Resurgence in Sri Lanka amid Political Changes
Behind the News
The United States of America (USA) is the first country to renew its foreign investment in Sri Lanka following the inauguration of left-wing JVP leader Anura Kumara Dissanayake as President of the island nation.
The U.S. already serves as Sri Lanka’s largest export market, and it is encouraging to witness an increase in U.S. investments locally as well. U.S. Ambassador Julie Chung expressed a desire for expanded bilateral trade and investment in the future.
Transdigm Group, a prominent U.S. engineering firm focused on aviation solutions, has invested $8.5 million in Sri Lanka, collaborating with AmSafe BirdPort to create a new facility, SHIELD, in the Wathupitiwala Export Processing Zone (EPZ).
This strategic alliance is anticipated to enhance Sri Lanka’s role in the global aviation supply chain, generating new export revenue and bolstering the economy and job market.
The foundation stone for the SHIELD factory was laid yesterday at a ceremony featuring key figures, including SHIELD Chairman Dennis Pursel, Board of Investment (BOI) Chairman Arjuna Herath, BOI Director-General Renuka M. Weerakoon, AmSafe BirdPort General Manager Chandani Ekanayake, and U.S. Ambassador to Sri Lanka Julie Chung.
She expressed hope that the establishment of SHIELD marks a positive shift in American foreign direct investment from China to Sri Lanka.
Manufacturing initiatives like this one, propelled by customer demand to diversify supply chains, present significant opportunities for Sri Lanka.
The U.S. Ambassador emphasized that if the new government can enhance the investment climate, enforce anti-corruption measures, and foster business-friendly governance and transparency, it could attract even more manufacturers.
Since the merger of AmSafe Commercial Products and Beam’s Seatbelts in 2013, SHIELD has emerged as a leader in occupant safety systems.
From child car seats to commercial vehicle seatbelts, SHIELD’s products are renowned for their quality and reliability worldwide. SHIELD’s relocation of its facility from China to Sri Lanka underscores the increasing interest in U.S. investments in the country.
The partnership between the United States and Sri Lanka is founded on mutual goals and respect. Efforts range from increasing farmers’ crop yields and expanding school lunch programs for the urban poor in Colombo to enhancing Sri Lanka’s maritime security.
U.S. collaboration is fueled by a shared vision: improving lives, fostering economic development, and ensuring regional stability.
This groundbreaking ceremony symbolizes a renewed commitment to these common objectives, working together to build stronger, inclusive communities and prosperous local economies. The Ambassador looks forward to the positive effects this factory will bring, such as job creation and enhanced innovation.
The enduring friendship between the United States and Sri Lanka, demonstrated through the successful cooperation underpinning this event and business venture, reflects shared values and aspirations, as well as the strength of their people-to-people, governmental, and economic connections. Congratulations again to SHIELD for maintaining this proud tradition.
