CASE STUDY: MINERAL SANDS INVESTMENT, WESTERN SRI LANKA
- Australian Client with investment in mineral sands project in western Sri Lanka concerned about countrywide security matters due to ongoing civil war.
- Major insurgent attack against the international airport in Colombo by insurgents (Tamil Tigers) affects investor confidence, impacts on international direct access to Sri Lanka leading to an exodus of foreign visitors and tourist, creating a sense of diminishing in-country management enthusiasm due to the perception of increased risk
- Sri Lankan Government continues to offer encouragement and support to all investors with coherent investment strategies. Security authorities (Army and Police) reaffirm effective control over Colombo and the western coastline, reinforced by a regular Navy coastal patrolling programme. Fighting between Army and insurgents is in the main confined to northern, central and eastern Sri Lanka, although Colombo city has a history of major bombing incidents which in the past have led to heavy civilian casualties and a diminishment in the number of foreign visitors and investors.
- Analysis of current security situation through in-country attendance and meetings with relevant senior national security authorities.
- Assess area of intended project investment site and meet with local community leaders and community members.
- Meet with relevant diplomatic community identities in Colombo to determine international approach towards a resolution of the civil conflict
- Meet with Army unit commanders (Brigade level), Navy command and national security leadership to assess real-time threat
- Discussions held at tactical command (Army) field headquarters and with Naval authorities in Colombo leading to the creation of a threat analysis specific to the projected area of investment.
- Meetings with Australian High Commissioner and High Commission Regional Security Officer (RSO) to outline investor intent.
- Meetings with National Intelligence Director, senior Intelligence staff and senior Police command to determine strategic threat levels
- In-depth intelligence summary provided to client for assistance in determining future investment intention
- Provision of bi-weekly intelligence summaries for a period of 18 months ahead of investor decision on investment. Due to deteriorating conflict situation, investor decides to withdraw personnel from Sri Lanka and close down operations