New Opportunities to Invest in Sri Lanka - Everything You Need to Know

City Group has identified Sri Lanka as one of its 3G economies (Global Growth Generators). 3G grouping is based on a weighted average of six growth drivers: i) measure of domestic saving/investment, ii) demographic prospects, iii) health, iv) education, v) qualities of institutions and vi) policies and trade openness.

Stability and return on investment (ROI) are two key factors that any investor looks to when assessing the potential of foreign investment engines. As the gateway to Asia, Sri Lanka boasts an open economy, attractive tax rates, an excellent location and solid infrastructure, thus making it an incredibly favourable destination for foreign investment. The safety of foreign investment is guaranteed by the constitution. It has bilateral investment protection agreements with 27 countries and double taxation avoidance agreements with 38 countries.

Sri Lanka is a founder member of the Multilateral Investment Guarantee Agency (MIGA), an agency of the World Bank. This provides a safeguard against expropriation and non-commercial risks.

As the Island nation grows socially, economically and financially, the government’s strategy has already started gearing itself to take Sri Lanka and Sri Lankan tourism to new heights (2.5 million visitors in 2016).

The Board of Investment of Sri Lanka (BOI) is the central facilitation point for investors. They provide assistance and advice throughout the investment process.

The BOI currently facilitates investors on a sector-focused approach. These sectors (together with special units to handle high profile projects and regional initiatives) cover all vital areas of the economy.

Sectors

• Tourism & Leisure
• Agriculture
• Knowledge Services
• Infrastructure
• Utilities
• Education
• Apparel
• Other Manufacturing
• Regional Programmes (300 Factories Programme)

Where to Set up

As an investor, you may select the following options to locate your project within Sri Lanka:

1. Locate your project within a BOI administered Export Processing Zone or Industrial Park (with required infrastructure facilities) on long-term lease basis. These zones/parks are more suitable for industrial manufacturing and processing businesses.

2. Locate your project outside zones.

•  By obtaining a privately owned land on outright purchase or lease basis, or
• By obtaining a government owned land available for long term lease under different government agencies. Acquisition of government lands involve a comparatively longer process and valuation is based on current market price.

How to Set Up

There are three ways to set up your project under BOI in Sri Lanka:

(1) Section 16 : Minimum Investment US$ 250,000.
Approval under Section 16 of the BOI Act permits foreign investments entry to operate only under the 'Normal Laws' of the country, that is, for such enterprises, provisions of the Inland Revenue, Customs and Exchange Control Laws shall apply.

(2) Section 17 : Minimum Investment app. US$ 500,000.
Under Sec.17 projects are approved with fiscal concessions such as Exchange Control and Custom duty exemption. Further, considering the minimum requirement of investment, the BOI will recommend a corporate tax exemption period through Inland Revenue Department.

(3) Strategic Development : In terms of the Strategic Development Projects Act No 14 of 2008 (as amended), exemptions not exceeding twenty five years may be granted for a Strategic Development Project  either in full or part from one or more of the enactments such as The Inland Revenue Act No.10 of 2006,The Value Added Tax Act No. 14 of 2002,The Finance Act No. 11 of 2002,The Excise (Special Provision) Act No.13 of 1989,The Economic Service Charge Act No. 13 of 2006,Customs Ordinance (Chapter 235),The Nation Building Tax Act, No 9 of 2009 and The Port and Airport Development Levy Act, No.18 of 2011.

The approval process for a SDP entails publication of a gazette notice on identifying the project; obtaining cabinet approval for same, publication of an Order in the gazette specifying the exemptions granted and then placing it before parliament for approval by Resolution of parliament.

Strategic Development Project  (SDP) means a project which is in the national interest and which is likely to bring economic and social benefit to the country and which is also likely to change the landscape of the country primarily through the strategic importance attached to the proposed provision of goods and services, which will be of benefit to the public; substantial inflow of foreign exchange; substantial employment generation; envisaged transformation in terms of technology.

Investment Incentives

(1) Investment Under 'Normal Laws' - (Section 16)
Approval under Section 16 of the BOI Act permits foreign investment entry to operate only under the ‘Normal Laws’ of the country; that is, for such enterprises, the provisions of the Inland Revenue, Control Laws shall apply. <Read More>

(2) Investment with Tax Incentives (Section 17) - As per Budget 2012
A new tax incentive regime has been introduced with the budget 2012 to promote private investments, both domestic and foreign. These new incentives are applicable to following categories of investments:

1. Small Enterprises
2. Medium Enterprises
3. Large Enterprises
4. Project Expansions
5. Strategic Import Replacement Enterprises

The details of the qualifying investment and the incentives granted for the enterprises under each category are highlighted below. <Read More>

(3) Investment Incentives under Strategic Development projects Act no 14 of 2008
<Read More>


Duty Free Facilitation
Companies signing an agreement with the Board of Investment of Sri Lanka are entitled to duty free facilities under Sec. 17 of BOI Law No. 4 of 1978. Companies that export more than 90% of goods or services produce are entitled to be free of Customs Duty on capital goods and raw materials. Other companies are entitled to capital goods (also construction materials where applicable) free of Customs Duty during the project implementation period.

Prior to signing an agreement, the company should forward the list of items that it requires to set up and operate the project. These lists will be evaluated and approved by the Sector groups.

Exemption from Exchange Control Regulations
Exchange Control exemption is granted only for Export-oriented projects under Sec. 17 of BOI Law and Strategic Development Projects. At present, a project is considered as an export oriented project only if it exports 90% of its production. Parts I, IA, II, III, IV V & VI of the Exchange Control Act are exempted for these companies and they could operate FCBU (Foreign Currency Banking Unit) accounts. 

For More Info: "Invest in Sri Lanka - Everything You Need to Know" : The Board of Investment of Sri Lanka (BOI)


How We Can Help You

InvestSriLanka represents a firm of professionals that shares a common goal of taking Sri Lanka forward by bringing in quality investments in Leisure, Finance, Construction, Agriculture, Alternative Energy and Education.

We welcome your proposals. Alternatively, we are happy to provide you a host of information on current projects and proposals in several spheres of investment. We should be happy to work with you from the concept to construction to commissioning of your special project. Our multi-disciplinary firm of professionals is prepared to offer its services at whatever level of expertise called for. In fact, we would be proud to.

Let us start our exchange of ideas now. Please Contact: investsrilanka@gmail.com

Sri Lanka's BOI Zones to be Upgraded with Rs 3bn Investment

08th February 2012, www.dailynews.lk, By Ramani Kangaraarachchi

The Board of Investment (BOI) will invest Rs 3 billion to upgrade the twelve BOI zones in the country to be model zones within the next three years. BOI Executive Director Technical Services Sunil De Silva said the model zones will have all facilities required by the investors to benchmark with any international BOI zone once the work is completed.

He said over the years the industries in the zones have expanded and acquired new technologies but those zones have not been upgraded parallel to them. At a time that investors are looking at Sri Lanka it is very vital to address the issues that they are concerned about.

De Silva said the infrastructure development will include new landscaping and improvement to roads with asphalt concrete pavements instead of traditional ones. New waste water treatment plants also will be set up as the existing capacity is not sufficient. New facilities for solid waste management will also be introduced. Apart from that best practices, efficient services and aesthetic appearance will add value to these zones.

He said that the Katunayake BOI zone which was established in 1979 has 530 acres of land and the largest among twelve zones and today there are 84 industries and 43000 employees. Rs 280 million out of the total amount has been allocated to improve this BOI zone. The other zones are situated in Biyagama, Seethawaka, Horana, Koggala, Mawathagama, Polgahawela, Meerigama, Wathupitiwala, Kandy, Malwatta and Mirijjawila.

Related Info :

• BOI Announces New Structure & Strategy to Raise FDI to 4-5pct of GDP over Next Three Years

• Sri Lanka Plans an Economic Zone similar to Dubai Airport Freezone in a Bid to Attract more Foreign Investments

• BOI to Establish 13th IPZ in Hambantota, Sri Lanka

BOI Announces New Structure & Strategy to Raise FDI to 4-5pct of GDP over Next Three Years

15th February 2011, www.dailynews.lk

The BOI announced a new strategy to raise FDI in Sri Lanka to the desired level of four to five percent of GDP over the next three year period.

The FDI this year is expected to reach the highest ever achieved by the country and will be well in excess of one billion US dollars, the BOI said. The changes aim to focus the BOI’s resources on priority investment projects most critical to national development - thereby accelerating job creation and income growth in all areas of the country.

The expected outcomes are the speedy raising of income levels of all people of the country in a move to achieve the vision of being the “The emerging wonder of Asia.”

“With the end of the war and the dawn of a new era of opportunity for Sri Lanka, we in the BOI need to take a lead in defining investment priorities and marketing these to investors, rather than just responding to proposals only” BOI Chairman Jayampathi Bandaranayake said.

The core of the new organization structure will be Sector-focused Investor Relations Teams. These teams (together with special units to handle high-profile projects and regional initiatives) will cover all vital sectors of agriculture, manufacturing, services including tourism and infrastructure.

Each team will work with the ministries and agencies in their sector to develop a joint sector strategy, identify investment priorities and promote these to target companies.

The same teams will act as relationship managers for all investors in their sector, from project evaluation to implementation to post-investment aftercare.

In addition, an integrated Investor Solution Centre will be established to guide investors through the business start-up process.

The Centre will assist investors with all aspects, including access to land, environmental and construction approvals, as well as legal, financial and labour

requirements, bringing together disparate departments to better serve investor needs.

The existing industrial Zones of the BOI will transform as model zones with excellent infrastructure and modern and enlightened practices of labour relations, with concerns for the environment and sustainability addressed.

The zone management will be given more independence and accountability to continuously improve the services that they provide to investors.

The zone management will also be responsible for developing strategy for future development of additional zones around Sri Lanka.

The BOI headquarters at the World Trade Centre will also be reorganized. All offices will be relocated to a single elevator bank, with dedicated floors for investors to meet with the Sector Teams and Investor Solution Centre.

This will free additional floor space which will be put to productive use.

The BOI is also expecting to make significant savings on overhead costs well in excess of Rs 100 million annually. These savings of public funds will be redirected into more productive uses.

The proposed changes have been developed and communicated through an extensive consultation and awareness building process with all levels, departments and unions of the BOI.

“We are encouraged by the enthusiastic support that we have received from the vast majority of staff in the BOI and the unions to have a real opportunity of serving the country and to bring about the desired change for a better Sri Lanka,” the Chairman said.

Related Info :
• Sri Lanka Targets $1bn FDI in 2011 Led by a Booming Leisure Sector - Chairman BOI

Sri Lanka Targets $1bn FDI in 2011 Led by a Booming Leisure Sector - Chairman BOI

11th February 2011, www.lankabusinessonline.com

Sri Lanka is expecting more than a billion US dollars in foreign direct investments in 2011 led by a booming leisure sector, after the end of a three decade war made the country more attractive, an official said.

"Our expectations (for 2011) are well over a billion (US dollars)," Board of Investment chief Jayampathy Bandaranayake said.

A three decade war ended in 2010 but actual FDI disbursements were 'very close to' 2009, he said. In 2009 when the intensity of the conflict reached its height foreign direct investments fell to 384 million dollars.

In the first quarter of 2010 there was a 30 percent drop in FDI due to a series of elections in the island, Bandaranayake said.

The International Monetary Fund earlier forecast at least 725 million US dollars of FDI this year.

On Friday Bandaranayake signed a 150 million US dollar investment agreement with Dialog Axiata which is expected to invest the money in expanding its network over the next two years.

Dialog had become the top foreign investor in the country clocking up a billion US dollars by December 30, and the latest investment will push it to 1.2 billion dollars, officials said.

BOI director Duminda Ariyasinghe said most of the cash would come into leisure and infrastructure.

Though information technology and business process outsourcing was generating high quality jobs and attracting a lot of interest the actual dollar values were smaller, he said.

Several high profile foreign leisure and property investments have already been announced, including 500 million dollar projects by Hong Kong based Shangri La and a CATIC, a Chinese state firm.

The two firms also will spend 500 million US dollars to buy state land.

Related Info :
• Sri Lanka Dialog Invests $150mn on Fibre & Broadband Network Expansion

• Shangri La Will Position Sri Lanka as a Prime Tourist Destination – Greg Dogan, Shangri La President & CEO

• Chinese Company to Build Another Luxury Hotel and Shopping Complex in Colombo, Sri Lanka

• BOI to Continue but Will Promote Mega Projects. To Advertise Land & Abandoned Factories Shortly

DPJ Japan Sri Lanka Friendship Parliamentarian League to Help Set up SMI Ventures as Sri Lanka Plans to Reach $1bn FDI by 2011

23rd December 2010, www.dailynews.lk, By Indunil Hewage

Japanese small and medium sector businesses are to set up their ventures in Sri Lanka in the near future.

DPJ Japan Sri Lanka Friendship Parliamentarian League Chairman Hirano Hirofumi said the Japanese Government has expressed its consent to establish Japanese small and medium enterprises in Sri Lanka generating more employment opportunities for youth.

He was addressing the media at the hosting of a Japanese Parliamentary delegation by Deputy Economic Development Minister Lakshman Yapa Abeywardana in Colombo yesterday.

The delegation of the Democratic Party of Japan (DPJ), Japan -Sri Lanka Friendship Parliamentarian League visited Sri Lanka to strengthen and bolster mutual ties between Sri Lanka and Japan.

The delegation was led by Japan-Sri Lanka Friendship Parliamentarian League Chairman Hirano Hirofumi.

He requested assistance from the Sri Lankan Government and the Board of Investment to increase Japanese investments in Sri Lanka.

He appreciated the Government’s efforts to develop infrastructure facilities in the Northern and Eastern parts of the country.

BOI Deputy Director General A M C Kulasekera said measures are being taken to increase foreign direct investments.

Sri Lanka targets USD $ two billion Foreign Direct Investments by 2013. It is planned to achieve US $ 1 billion and US $ 1.5 billion FDIs by 2011 and 2012 respectively to achieve an eight to ten percent economic growth in the country.

He stated that cumulative Japanese investments in Sri Lanka is US $ 300 million and so far 60 Japanese companies are operating in the country with BOI approval.

In addition, 26 Japanese companies operate in Sri Lanka. These Japanese companies have managed to create over 12,000 employment opportunities in Sri Lanka while rendering financial support to the ongoing mega development projects.

He said there are ample opportunities in the thrust areas such as electric component manufacturing, fishery, tourism, agricultural, education and skills development areas for Japanese investors to invest in Sri Lanka.

The Sri Lankan Government has also provided incentives to Japanese companies situated in the country. Japanese companies in Sri Lanka will be entitled to export their products to India and Pakistan duty free.

Deputy Economic Development Minister Lakshman Yapa Abeywardana said Japan has been rendering assistance to the country and Sri Lanka expects further assistance and future investments to enhance tourism and industrial development sectors in Sri Lanka.

Japan has also lifted the travel advisories to the Northern and Eastern areas on a request made by the Sri Lankan Government.

Image: Deputy Economic Development Minister Lakshman Yapa Abeywardana and DPJ Japan Sri Lanka Friendship Parliamentarian League Chairman Hirano Hirofumi exchanging a token of appreciation at the media briefing. Picture by Rukmal Gamage.

BOI to Continue but Will Promote Mega Projects. To Advertise Land & Abandoned Factories Shortly

23rd November 2010, www.sundaytimes.lk

Sri Lanka’s Board of Investment (BOI) will advertise about 40 vacant slots in the BOI zones and 15 abandoned apparel factories by next month in a bid to source investors for them, its chairman Jayampathi Bandaranayake said at a post-budget meeting organised by accounting firm KPMG on Tuesday.

He told the Business Times on the sidelines of this meeting that the BOI will not be abolished but continue as an agency which will mainly promote mega projects and not small ones, as it has done in the past. (DEC)

Related Info:
BOI Communiqué - Posted on 10th November 2010

Jiffy Products Signs Investment Agreement to Expand Manufacture of Coir Horticultural Products

01st June 2010, www.dailynews.lk

The Board of Investment of Sri Lanka granted investment approval to Jiffy Products S. L. (JPSL) to expand operations under the BOI. Chairman/Director General Jayampathi Bandaranayake signed the agreement on behalf of the BOI and presented the BOI approval to the investors. The company will be investing over US $ 2.5 million for the expansion process.

Jiffy Products S.L. Limited is the Sri Lankan subsidiary of Jiffy International AS Kristiansand, Norway. Jiffy International is a US $ 250 million transnational company engaged in manufacturing, sales and distribution of plant propagation substrates, substrate systems and related horticultural products throughout the globe.

The company operates manufacturing sites in Norway, Netherlands, Denmark, Germany, Estonia, Sweden, Spain, USA, Canada, Japan and Sri Lanka. Jiffy International operates sales offices in Netherlands, Norway, Denmark, Italy, France, Germany, Spain and importers to cover Europe, US and Asia.

The motivation behind Jiffy Group’s venturing in to Sri Lanka is the availability of Coir fibre pith which is gaining popularity all over the world as a versatile plant propagation and growth medium.

Also Sri Lanka’s geographical location plays a key role in serving the fast growing Asian economies like China and India and the established horticultural markets like Japan, Australia and South Korea.

JPSL started its operation in Mirigama Export Processing Zone and has its head office located in the zone.

In 2006 JPSL started its own coir fibre pith processing plant at Pannala in the Kurunegala district. With the increased substrate capacity, JPSL ventured into other Coir substrate product lines such as Jiffy Grow Blocks, Jiffy Coco Discs and Jiffy Grow Bags.

In 2008 the company ventured in to producing its own plastic propagation trays as it represents a major portion of the cost of Jiffy Pellet Pack systems. A 75-Acre land has been acquired in the Kobeigane area in the Kurunegala District with the expectation of expanding the coir substrate capacity.

Currently JPSL provides employment for 250 and the total investment in JPSL amounts to USD eight million. JPSL earn a revenue of USD three million annually. With the new investments it is expected the revenue will increase to more than USD 5 million by the end of 2010.

Image: BOI, Chairman/Director General Jayampathi Bandaranayake with Jiffy Director Operations Frank Skapness and General Manager Sandeeptha Gamlath.

Dinesh Ambani Signs Iced Tea Project in Sri Lanka on behalf of Walters Bay Bogawantalawa

01st June 2010, www.dailynews.lk

Bogawantalawa Tea Estates PLC Chairman Dinesh Ambani, signed the BOI agreement on behalf of “Walters Bay Bogawantalawa Estates (Pvt) Ltd” to setup a state-of-the-art processing centre to manufacture iced tea in packaged form for export to Walters Bay US, in fulfilment of its contract obligations with the global multiple brands.

The initial investment would be US $ 2 Mn to set up the processing centre which provides the entire iced tea program including the brewing machine, the water filter system and own water recipe with adjusted TDS/hardness to guaranteed consistency of its product quality.

Bogawantalawa Tea Estates PLC (BTEL) is a Blue Chip Plantation Company. Its group annual turnover exceeds US$ 30 million.

BTEL shares at present are actively traded at the Colombo Stock Exchange.

The company’s high grown tea estates are located in the Bogawantalawa Valley known as the “Golden Valley of Ceylon Tea”, producing some of the most sought after high grown teas in the world.

Malaysian Companies Keen to Invest in Sri Lanka with its Target FDI of $1bn in 2010

21st May 2010, biz.thestar.com.my

Sri Lanka, via its Board of Investment (BoI), is currently in discussions with several local companies concerning their interest to invest in diverse fields.

Sri Lankan High Commissioner to Malaysia, Dr Don Dandayanda Ranasinghe, said the companies, which included Sunway, YTL, Genting and Berjaya, showed interest in sectors like tourism, infrastructure, education and financial services.

“Discussions are still ongoing and progressing very smoothly,” he told reporters after a seminar on Business and Investment Opportunities in Sri Lanka, organised by Malaysian Investment Development Authority and Sri Lanka here yesterday.

Among the major Malaysian companies having operations in Sri Lanka are Axiata Group Bhd in cellular mobile phone network, Merbok Hilir Bhd in medium density fibreboard, Lagenda Sentissa Sdn Bhd in public payphone system, Felda Marketing Services Sdn Bhd in cultivating oil seeds and hydrogenated edible oil, and Pembinaan Wincon Sdn Bhd in housing development.

Malaysia is expected to remain as one of the main investors in Sri Lanka in next five to 10 years, according to Ranasinghe.

He said the Sri Lankan government was calling on the Malaysian business community to invest in various sectors promoted by BoI Sri Lanka as the country was now in a new phase of economic development.

Among the sectors are infrastructure, tourism, education, logistical services, agriculture, manufacturing, rubber industry, business process outsourcing and software industry as well as gems and jewellery. — Bernama

Ranasinghe said Sri Lanka aimed to attract US$1bil in foreign direct investments this year from last year’s US$889mil as foreign investments would play a major role in economic development.

“Sri Lanka, which has gone through a difficult and turbulent period of over three decades due to internal conflict, is now at a turning point in our history, both politically and economically,” he said. — Bernama

BOI Sri Lanka Accelerates Projects under Rapid Investor Facilitation

22nd April 2010, www.dailynews.lk

The Board of Investment (BOI) is now accelerating proposed projects under implementation through rapid investor facilitation.
The BOI has taken this step since there were many Foreign Direct Investments (FDIs) directed to Sri Lanka during the first four months of this year which was US $ 250 million, BOI Chairman Dhammika Perera said.

Thirty percent of the FDI to Sri Lanka is directed fully by foreign investors. Joint ventures too have a 30 percent share in FDIs. The locals have contributed with 30 percent share in to total investments.

“We are at present looking at re-evaluating our resume of incentives to the investors. Apart from that, BOI expects to encourage investments in the Northern and Eastern areas. The investments in agriculture, fisheries and food processing will be encouraged in the Northern and Eastern areas,” Perera said.

The BOI encourages joint venture investments with Sri Lankans. Those joint ventures will promote application of latest technology and knowledge to various industries. Thus the focus on joint ventures should grow further, he said.

“Tourism will be the other area that many investments should focus on.

“There are several infrastructure facilities that must be developed to accommodate many tourists. These facilities definitely have to be on par with international standards,” Perera said.

There is good potential in the East coast with many natural reserves.

But what Sri Lanka needs at present is formal training institutes to improve the service provided by leisure sector employees.

He said that industries such as agriculture, fisheries should come to the market with value addition.

Nine Investors to Start Projects in Horana Export Promotion Zone in Sri Lanka at US$ 57mn

08th April 2010, www.island.lk

The Board of Investments (BOI) says renewed investor confidence in Sri Lanka would lead to nine new factories being stablished in the Export Processing Zone (EPZ) at Horana.

The BOI announced that nine new companies would start projects at the Horana Export Processing Zone. The total value of their investments once completed would be US$ 57.15 million and they will employ 1,221 staff at the Horana Export Processing Zone.

"This is very significant as the new enterprises decision to invest will result in almost doubling both the Foreign Direct Investment (FDI) and the number of jobs available at the Horana Export Processing Zone (HEPZ)," the BOI said in a statement.

The new factories would be set up by the following companies:

1. Unilever Sri Lanka (Pvt) Ltd, a UK investment, that will be producing food items, soap and toothpaste and investing US$ 40 million and providing employment at capacity for 100 workers.

2. Aspic Bio Tea (Pvt) Ltd, a Malaysian investment will be producing liquid tea and bio tea and investing US$ 2.5 million and providing employment at capacity for 49 workers.

3. Cavin Care (Pvt) Ltd, an Indian investment will be producing cosmetic products and investing US$ 0.65 million and employing 110 workers.

4. Auto Link International (Pvt Ltd), a Sri Lankan enterprise will be engaged in vehicle reconditioning

5. Heritage Foods (Pvt) Ltd is an Indian company engaged in the production of food and beverages, representing an investment of US$ 0.35 million that will provide employment for 202 workers.

6. Phoenix Industries Ltd is a Sri Lankan plastic personal care & packaging products company which is an investment of US$ 2 million which will employ 55 workers at capacity.

7. Nithiya Packaging (pvt) Ltd is an Indian manufacturer of paper products, representing an investment of US$ 7 million that will employ 350 workers at capacity.

8. Hwagin Medical Lanka (Pvt) Ltd is a Chinese manufacturer of disposable syringes representing an investment of US$ 4.2 million, which will employ 100 workers at capacity.

9. Digital Engineering Lanka (Pvt) Ltd is a Sri Lankan company that will manufacture anti adhesive oil, concreting and foaming grease, representing an investment of US$ 0.45 million and employing at capacity 55.

The Horana Export Processing Zone, which is in the Kalutara District commenced operations in November 1999. It is located 50 kilometers from Colombo on a land of an area of 385 acres.

The HEPZ is equipped with a complete road network, power supply, treated water supply, telecom facilities, water treatment plants, waste water treatment plants and security services.

The current total investment at the HEPZ is US$ 54 million and its 11 enterprises provides employment to 1,623 workers. These enterprises are involved in the manufacture of garment accessories, essential oil, plastishell products, non ferrous metal recycling, MDF boards, electric power generation and glassware.

The nationalities of the enterprises currently at the HEPZ include Sri Lankan, Indian, Malaysian companies and three joint venture companies consisting of India/Singapore, Finland/India/Sri Lanka and India/Sri Lanka investments.

MphasiS Invests in IT Enabled Services in Sri Lanka. BOI Promotes Knowledge Sector in IT/BPO/KPO Operations

08th April 2010, www.dailynews.lk

The Board of Investment of Sri Lanka (BOI) granted investment approval to MphasiS Lanka (Private) Limited. Chairman/ Director General Dhammika Perera signed the agreement on behalf of the BOI and presented the BOI Certificate of Registration to the investors.

MphasiS Lanka signed an investment agreement worth US $ 3.5 million to establish a venture to provide IT enabled services.

The company will provide employment for a work force of 500 initially. MphasiS is one of the fastest growing and dynamic Indian IT BPO companies. MphasiS, a leading IT services provider will expand its global talent footprint, with the establishment of a global delivery centre in Colombo. The centre will join MphasiS' network of global delivery centres providing Applications, BPO and ITO services to clients worldwide.

MphasiS is the seventh largest IT services company in India having a presence across India, Singapore, China, Japan, Europe, North America and Australia.

Employees at the Sri Lanka centre will be part of MphasiS Global Talent Pool and groomed as a part of MphasiS Talent Development Program.

MphasiS is a leading applications services, remote infrastructure services and business process outsourcing services provider.

The company delivers real improvements in business performance for clients through a combination of technology know-how, domain and process expertise.

MphasiS will work towards developing and nurturing local talent. MphasiS is expected to work closely with the Government and academia in Sri Lanka, to focus on creating an industry ready talent pool. BOI has been actively working to promote the knowledge sector, IT/BPO/KPO to make use of Sri Lanka's high literacy rate in South Asia and to complement the growing IT BPO sector in India.

MphasiS Lanka Limited Director M. G. Raghuraman, signed the agreement on behalf of the company.

MphasiS' Head HR Leader, New Locations Learning (Technical and Domain) Usha Subramanian was present at the occasion.

Executive Director Duminda Ariyasinghe, Senior Deputy Director A.W.M. Faizal Executive Assistant Kosala Harischandra and MphasiS Sri Lanka Consultant Nishendra Manathunga were also present.

BOI Chairman/Director General Dhammika Perera (right) handing over the agreement to MphasiS Lanka Pvt Ltd Director M.G. Raghuraman.

Water Sports Activity Complex in Arachchikattuwa, Sri Lanka offers Cayago Water Sport Vehicle Known as SEABOB

10th March 2010, firstlanka.com

The Board of Investment of Sri Lanka granted investment approval to Mount Castle Marine Limited to provide tourism related water sports activities and a recreational complex at Arachchikattuwa.

Dhammika Perera, Chairman / Director General signed the agreement on behalf of the BOI and formally presented the BOI Certificate of Registration to the investor.

The venture is an investment of US $ 500,000 providing employment for 30 initially. The company will provide water sporting using the Cayago luxury water sport vehicle known as the “SEABOB”. It is matchless in design as well as function and the SEABOB has the ability to travel over and under water at incredible speed. The SEABOB, manufactured in Germany is 100% environmentally friendly and a totally innovative way to experience water sports.

“Rent a SEABOB”, which is known to globally attract many tourists to diverse parts of the world is expected to have a high demand in the Sri Lankan market. With the Sri Lankan tourism industry once again booming the SEABOB will be of popular demand while further promoting a booming industry.

US$ 10mn Sail-Cloth Plant Opens in Sri Lanka

11th january 2010, www.island.lk, By Mario Andree

A BOI approved company specialising in manufacturing sail-cloth opened a US$ 10 million factory last Friday aimed at granting 200 jobs.

Dimension Polyant Lanka opened its manufacturing plant at Divulpitiya under a BOI license to manufacture Industrial textiles and Sails aimed at the export market.

Dimension Polyant Gmbh/Germany currently operates plants in USA, Germany, and Australia, all specialising in the manufacture of sail-cloth.

The Sri Lankan operation is expected to contribute significantly to the company’s stake in the sail-cloth industry and meet the superior standards of the large international sail-sport market.

$2.4bn Steel Plant in Trinco, Sri Lanka. Australian Investment is the Biggest Ever BOI Project

13th December 2009, www.sundaytimes.lk

Sri Lanka is slated to get a US$ 2.4 billion steel plant investment from some Australian investors soon, according to informed sources. “It will most probably be set up at the Heavy Industry Zone scheduled to be put up in the East – Trincomalee and would begin after the land is sorted out,” one source told the Business Times.

He said it is a Board of Investment (BOI) project and that a team from Australia visited the BOI and had discussions with its officials. BOI officials were unavailable for comment.

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.

UK Investment on Apparels in Sri Lanka, Claudia International to Set Up a Project to Manufacture Garments for Export

10th November 2009, firstlanka.com

The Board of Investment of Sri Lanka granted investment approval for Claudia International Limited to set up a project to manufacture garments for export. Chairman Dhammika Perera, signed the agreement on behalf of the BOI and formally presented the BOI Certificate of Registration to Chairman of Claudia International (Pvt) Limited Michael Moniatis.

The venture will be operating a garment manufacturing plant in Boralesgamuwa and will be providing employment for over 500 workers with an investment of over US$ 1 million. Products manufactured will be exported to the European Market and Ladies Fashion blouses and skirts will be the main products manufactured by the company.

Michael Moniatis has extensive experience in the apparel trade having been involved in manufacturing, design development, marketing, supplying to leading European retailers and running his own store group in the UK. His intention is to improve the design capabilities in Sri Lanka which will be an advantage in securing orders from leading European Buyers. To achieve this purpose he together with his UK Company will share the vast expertise they have in this area.

More Fashion oriented orders will be planned for the Factory in Sri Lanka and the project is expected to be fully operational within the next 6 months. Mr. Michael Moniatis, Chairman signed the agreement on behalf of Claudia International Limited.

Chinese Investment in Sri Lanka Up, Latest Investment for Quarry Material

10th November 2009, firstlanka.com

The Board of Investment of Sri Lanka has granted investment approval to Chinese investors to produce quarry material.

The venture is an investment of Rs.75 million, sponsored by Dah Fung Enterprise (China) Limited in Hong Kong. The quarry material that is produced is required for the Colombo – Katunayake Expressway project.

The venture is expected to produce around 60% of the total quarry requirement of the Expressway. This project under ‘Nipayum Sri Lanka 300 Enterprise Programme’ will be located in Pannala and will be providing employment for about 100 people.

Norway Invests in Agri-Forestry Project Based on Out-Grower Farmer Model

11th November 2009, www.dailynews.lk

The Board of Investment of Sri Lanka granted investment approval for Pure Nature Limited to set up a project to cultivate and process fruits in Havampitiya, Moneragala. Chairman/Director General Dhammika Perera signed the agreement on behalf of the BOI and presented the BOI Certificate of Registration to the investors.

The venture is an initial investment of Rs. 75 million, sponsored by Norwegian investors. The project which will be based on the out-grower farmer model will initially provide employment for 200 out-growers.

The venture expects to expand operations to an investment of Rs. 200 million providing employment for 1000 out-grower farmers in Havampitiya, Moneragala.

The agri-forestry project would focus on growing Maize as the main crop while growing seasonal crops such as Sesame and Soya. A plantation will also be established on a 25 acre land.

He also said that Maize has a high local demand and that the company expects to export to the European and US markets. Asia Plantation Capital Directors Arne Fiortort and Arjuna Dissanayake signed the agreement on behalf of the company.

Image: Chairman/Director General Dhammika Perera BOI presents the BOI Certificate of Registration to the investors of Pure Nature Limited.

Investment from UK to Develop Agri-Forestry in Sri Lanka

28th October 2009, firstlanka.com

The Board of Investment of Sri Lanka granted investment approval for Asia Plantation Capital Limited to grow cash crops and forestry. Dhammika Perera, Chairman / Director General signed the agreement on behalf of the BOI and formally presented the BOI Certificate of Registration to Mr. Arjuna Dissanayake, Director of Asia Plantation Capital.

The venture is an initial investment of Rs. 28 million, sponsored by Oxigen Plantations Limited, UK. The project will provide employment for a workforce of 150. The agri-forestry project would focus on growing Maize as the main crop while growing seasonal crops such as Sesame and Soya. The plantation is established in a 300 acre land in Polonnaruwa.

Arjuna Dissanayake said that most plantations in the area work with rain water and the company expects to set up their own irrigation system. The irrigation system will allow Asia Plantation Capital to harvest 3 crops per year. He also stated that Maize has a high local demand and that the company in addition expects to export to the European. Arjuna Dissanayake, Director signed the agreement on behalf of Asia Plantation Capital.