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Archive -Letter to the editor

Letter to Editor - Attack on Seychelles’ offshore sector baseless and uncalled for |31 July 2014

A lot has been said and written about the recent attack on Seychelles offshore sector by an opposition politician in Sri Lanka. Many agree that his remarks, if anything, were baseless, unfounded and uncalled for.  Those who know this politician’s political background would realise that he was only toeing the party line (UNP) to sling mud at the Sri Lankan government’s genuine efforts in building and strengthening diplomatic relations and economic ties with friendly neighbouring countries. Hence, Sri Lankan media simply ignored his comments as usual ‘rubbish’.

His main argument that wealthy Sri Lankans may (sic) be using offshore companies registered in Seychelles to transfer money to Swiss Banks was based on a slight decline in the direct transfer of money out of Sri Lanka to Swiss banks and an increase of the same from Seychelles in 2013, compared to previous years.  To buttress this argument, he also questioned the merit of opening a Bank of Ceylon branch, Mihin Lanka, Lanka Insurance and diplomatic mission in Victoria, inferring as if they were also part of the grand scheme. While letting his imagination run wild with a possible Sri Lankan government’s involvement, he chose to ignore the presence of a large Sri Lankan community and private sector businesses like Nawaloka Hospital and Sanken overseas in Seychelles.  He should have known that those businesses are here to make profits and they make profits.

The politician would have done better had he done his homework to find out more about Seychelles, for example, its per-capita income; what other banks of international repute are there already; what other countries have permanent diplomatic missions in Seychelles and more importantly, its economic model. He could also have ascertained as to whether trade and commerce has risen between the two countries over the past two years; what areas of co-operation exist between the two countries and what treaties and bilateral agreements exist.

His other argument that Seychelles has a population of around 90,000 and it has over 140,000 registered offshore companies is even more laughable to say the least. Had he done his homework, he would have seen that Seychelles started offshore sector back in 1994 and it has been growing steadily due to a number of positive factors including its modern laws, the highly skilled workforce, speaking two major international languages, friendly approach, convenient time zone and ease of doing business. Add to that Seychelles’ strategic location, peaceful environment, political stability and its great potential in the field of tourism and fisheries. These are powerful magnets attracting serious business partners as well as visitors to its shores.

One would wonder what the politician would have to say about the fact that Seychelles is attracting well over 200,000 tourists per year, which is much higher than the population. Would he see any plot there too? He should know that, like any other country, Seychelles has a right to map out its own economic model and carry it out effectively to derive maximum benefits to its population.  As long as Seychelles does so with due regards to international law and in compliance with international best practices, there is nothing wrong with that.

If the government of the day in Sri Lanka has seen the importance of establishing relationship and doing business with Seychelles, it is because it has seen the benefits of doing so. The politician would do well to learn from his government’s winning strategy.

Gamini Herath

 

 

 

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