BOI to Establish 13th IPZ in Hambantota, Sri Lanka

13th November 2009, www.dailymirror.lk

Thirteen might seem to be a jinxed number for some but the Board of Investment (BoI) is looking to establish its 13th Investment Promotion Zone (IPZ) in a 400 acre area in Hambantota at an infrastructure cost of Rs. 3 billion, which will introduce integrated development on an industrial township model.

BOI Deputy Director General (Infrastructure) L. D. Dickman told Daily Mirror FT that the conceptualised plans for the ambitious project have already been drawn up and they were busy procuring State land before inviting investors. He explained that the Hambantota site had been chosen for a number of reasons, including its close proximity to the harbor and airport as well as the international cricket stadium, with the latter still in the pipeline.

“We have decided on a township concept for the IPZ. That means there will be residential areas with hospitals and schools as well as the general infrastructure of roads, electricity and water. The Government will provide the basic infrastructure at a cost of Rs. 3 billion and we will then look to both local and international companies for all forms of investment,” he said. Dickman remarked on the multifaceted aspect of the investment, pointing out that tourist focused industries such as hotels would also be welcome in addition to the traditional sectors of IT and heavy industries given that Hambantota is earmarked to become a tourist attraction.

The bulk of the 400 acres will be vested as a free grant to the BOI while another 18.77 hectares will be given to Sri Lanka Cricket for the establishment of an international cricket stadium. The Cabinet paper in this regard has already been approved. Accordingly, the prospective investors will be given land on a 50-year lease. They will also be covered by a 15-year tax holiday as the IPZ will be outside the Western Province.

“Eventually we expect to open this zone to 25-30 industries and promote it as one of the most attractive investment destinations in Asia. Export-oriented companies in particular will be interested in the zone as it provides easy access to the harbor and airport,” he noted, adding that the integrated township development idea was formulated to ensure that the returns went directly to the people.