Investing in Sri Lanka: Embracing Challenges and Opportunities

As the CEO of Autogroup International , I have been fortunate to witness firsthand the immense potential and resilience of Sri Lanka as an investment destination. Over the past two decades, our company which has always been 100% Australian-owned has not only thrived but also contributed significantly to the Sri Lankan economy, employing over 150 highly skilled individuals directly, hundreds more in our local supply chain, and establishing a worldwide reputation for excellence in the left-hand drive to right-hand drive conversion of American SUVs, Muscle Cars and Pickup trucks.?

While the allure of Sri Lanka's picturesque landscapes, beautiful beaches, and diverse wildlife is undeniable, it is the country's skilled workforce, relatively favorable business environment, and unwavering spirit of resilience and ingenuity of the workforce that truly make it an attractive prospect for foreign investors.

Having lived and worked in various parts of the world, including Australia and London, I can attest to the unique qualities that set Sri Lanka apart. Despite facing economic, political, and bureaucratic challenges, Sri Lanka's people exhibit a remarkable sense of community, kindness, and determination that is unparalleled.

Our journey at Autogroup International as foreign investors for over 20 years in Sri Lanka has been filled with both successes and challenges. We have navigated many macro challenges over the last twenty years including the civil conflict, the pandemic, economic downturns, bureaucratic hurdles, and most recently instances of intellectual property theft, and the weaponisation of Sri Lankan bureaucracy against us. ?These challenges have tested our resolve and made us deeply question our long-term commitment to Sri Lanka. Still, they have also highlighted the strength, resilience, and passion of our team, whom we proudly refer to as our 'AGI Family', and helped us reflect on our responsibility to our AGI family in Sri Lanka.

The talent, capability, and pride of our Sri Lankan workforce have been instrumental in our worldwide success, allowing us to achieve significant milestones over the decades such as the world's first right-hand drive 2024 Hummer EV SUV, Toyota Tundra and Ford F-150 Lightning EV pickup truck alongside our undisputed reputation as the worldwide leader in vehicle conversions. These achievements not only showcase our commitment to innovation, high-quality outputs, and our technological capability but also underscore the incredible capabilities of our team based entirely in Sri Lanka.

While operating in Sri Lanka has been rewarding, it has also presented its share of obstacles. Bureaucratic processes, ease of doing business, limited focus on pre-existing foreign investors to help them grow, and the pace of government initiatives have posed challenges we must navigate.? However, these challenges are not unique to Sri Lanka and can be found in many other countries worldwide.

Despite these challenges, our decision to invest and remain in Sri Lanka has been driven by our belief in the country's potential and the resilience of its people. We have weathered economic hardships, political uncertainties, and even recently malicious anonymous attacks using spurious allegations of wrongdoing to various government departments that were designed to destroy our business plus unbelievably the theft of our intellectual property. These challenges have tested our determination but have ultimately reinforced our commitment to supporting Sri Lanka's growth, development, and most importantly our team.

As a foreign investor, we have faced tough decisions, including the possibility of relocating our operations to a supposedly "easier" country. However, our faith in the talent and dedication of our Sri Lankan team, coupled with our long-standing commitment to the country, has kept us rooted in Sri Lanka.?

The COVID-19 pandemic and its economic repercussions further underscored the challenges faced by businesses globally, including ours. Despite these challenges, we have remained resilient, adapting our strategies, and finding innovative solutions to continue operating, growing, and contributing to the Sri Lankan economy and our local community.

Looking ahead, we remain very optimistic about the future of foreign investment in Sri Lanka. The country's skilled workforce, labour arbitrage benefits irrespective of inflation, relatively favorable tax policies, and strategic geographical location make it an attractive destination for businesses looking to expand and thrive. However, there is room for improvement, particularly in streamlining bureaucratic processes, extending visa options for investors, and proactively working with foreign investors such as Autogroup International to see how government agencies can help really partner with the ‘good’ foreign investor-owned businesses to drive growth and to operate at a pace that is in line with corporate pace; plus providing greater flexibility for business expansion.

Our experience at Autogroup International is a testament to the opportunities and challenges of investing in Sri Lanka. We have not only contributed to the economy by generating millions of USD in foreign reserves inflows and creating hundreds of employment opportunities but have also experienced firsthand the resilience, kindness, and, determination of the Sri Lankan people.?

I believe one of the ‘missed opportunities’ to grow FDI and help promote Sri Lanka as a favourable investment destination is to truly leverage existing foreign investors like Autogroup International!? We have a significant global reach and proudly highlight both our 100% Australian foreign investor status and that our home is proudly in Sri Lanka.

Most months I get direct, unsolicited calls from other foreign investors asking for my honest opinion and advice on operating in Sri Lanka.? I sense that sometimes the best people to ‘sell’ Sri Lanka as an FDI destination are other foreign investors who have survived and thrived whilst operating here.

A key task of any CEO and especially true for me personally, is to support our talented team and help this wonderful country I now call home.?? Every single day I am impressed by the sheer talent, capability, and kindness of my wonderful team.?? Internally we often talk about and celebrate that we are not just the best at what we do in Sri Lanka but we are the best at what we do on the planet!??

Every day I am proud of what our 99.9% Sri Lankan team achieves, I am delighted at the employment and personal development opportunities we provide, and I love how we quietly give back to our community.

A core tenet to our business philosophy is the equal importance of People, Planet, and Profit – we don’t operate just to make money, we don’t operate in an offshore tax haven to maximise personal financial gains and most importantly we operate with integrity.

In conclusion, Sri Lanka holds immense potential for foreign investors willing to embrace its challenges and opportunities. As we continue our journey in this beautiful country, we remain committed to operating with integrity, supporting our local community, winning our often unchosen battles, and driving sustainable growth for the benefit of all stakeholders involved.?

Sri Lanka remains our home, and every morning I wake up knowing that I am lucky not to be in Australia or the United Kingdom!

[email protected]

Rob Hill

CEO

Autogroup International.