Land Rover Defender Assembly Plant in Hambantota. Sathosa Motors to Invest $ 1mn

02nd April 2013, www.dailynews.lk

Sathosa Motors PLC will invest US $ 1 million to set up an assembly plant for Land Rover Defenders in Hambantota District.

“Preliminary work of the project has already been completed and the project is expected to commence shortly. The proposed project would make Land Rover vehicles available and affordable to a wider spectrum of the market,” Access Engineering and SML Frontier Automotive ( Pvt) Ltd Chairman Sumal Perera said.

He expressed these views at the launch of SML Frontier Automotive (Pvt) Ltd, which will be the exclusive distributor and after sales provider for Land Rover in Sri Lanka. SML Frontier Automotive (Pvt) Ltd is jointly owned by Sathosa Motors and Sheran Fernando.

This would be a 50-50% partnership between both parties.

Speaking about the new partnership Sumal Perera, Chairman SML Frontier Automotive said “We are very excited with the new partnership and this will be the first stepping stone to further expand our foot print in the motor vehicle market.

Access engineering Limited, a public quoted company now owns over 86% of Sathosa motors.

We are very much committed to keep the Land Rover name in its deserved status whilst upholding the good name that Land Rover have established in the world.

“The final beneficiary of this venture will be the Land Rover owners and enthusiasts; Today, we made a great emphasis on ‘after sales service’ through this joint partnership,” SML Frontier Automotive, Managing Director Sheran Fernando said.

After sales service is considered the corner stone of strengthening the Land Rover/ Range Rover brand in Sri Lanka and the construction of a new state-of-the-art workshop in Vauxhall Street will be the epicenter of Land Rover’s after sales service and will commence operations shortly.

It is planned to invest US $ 500 million at the initial stage of the project.

Image: SML Frontier Automotive ( Pvt) Ltd Chairman Sumal Perera and Managing Director Sheran Fernando at the launch of SML Frontier Automotive ( Pvt) Ltd. Picture by: Sumanachandra Ariyawansa.

Sri Lanka's First Monorail Links Hambantota Airport and Suriyawewa International Cricket Stadium

18th January 2012, www.dailynews.lk, By Shirajiv SIRIMANE 

South Asia's first monorail track will be built in Hambantota linking the new Hambantota Airport and the Suriyawewa International cricket stadium. The project is expected to get off the ground next year. Hambantota district

Parliamentarain Namal Rajapaksa told Daily News that this would be a three kilometre stretch and they are currently talking to several investors in this regard.


He said that one of the main aims of this proposed rail track is that it would link key development projects that are already taking place in the City of Hambantota.

"One would be the proposed IT park where over 1.500 would be directly employed and the proposed convention centre, Airport, a 3,000 room apartment complex and several key investment projects," he said.

Since this is a very expensive project the monorail track is expected to be constructed on a build and operate basis where both the investment and maintenance costs would be less expensive to the country.

He also disclosed plans to construct a night market for Hambantota, which would open at 9 p.m. and go on till around 4 a.m. Rajapaksa also said that the Colombo-Marata Highway would be completed by 2013. "This would be extended to

Hambantota by 2016 and the railway line too would be extended to Hambantota," he said.


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• Colombo International Airport to Receive 6mn Passengers by 2018. New Hambantota International Airport in Southern Sri Lanka to Open for Commercial Flights from November

Colombo International Airport to Receive 6mn Passengers by 2018. New Hambantota International Airport in Southern Sri Lanka to Open for Commercial Flights from November

18th January 2012, www.dailynews.lk, By Shirajiv Sirimane

The Colombo International Airport would be upgraded to cater for six million passengers by 2018. This is a 100 percent increase.

Airport Aviation Services Chairman Col. Prasanna Wickramasuriya said that this includes over one million passengers using the Hambantota International Airport (HJA) as well.

He also said that the HIA construction work is on track and the new airport runway testing would start from October and would be open for commercial flights form November.

“The second stage of the HIA project is to be completed by 2018,” he said.

Wickramasuriya said that initially they would target the charter operation and subsequently attract budget airlines to operate to HIA. “With tourism booming many airlines have requested for additional frequencies and we are planning to divert them to HIA,” he said.

HIA has allocated a large space for a proposed duty free shopping complex for the airport and they expect this would bring in a special ‘shopping’ clientele similar to Singapore.

He also disclosed that investors have expressed interest to set up a publishing zone in Mattala.

SriLankan Airlines will look at rerouting some of their European and Gulf flights through the Hambantota International Airport (HIA) from next November CEO, Kapila Chandrasena said.

He said that their plan is to have a stop over in HIA so that passengers could have the option of disembarking in Mattala while passengers too could take connections to Colombo.

“Similarly we are also looking at operating the Male transit market from the proposed Mattala Airport,” he said.

The national carrier will also handle the ground handling and catering services of the new airport. “The handling rates would be definitely more competitive than the Colombo Airport,” he said.

While spelling out plans to have an extension arm of their engineering wing at HIA he said that they will soon sign up to get a second A330 simulator for pilot training.

SriLankan, which is expected to strengthen their air taxi services with two additional aircraft, is to build an air taxi hub in Bandagirlya Tank in Mattala. This would be a five-minute drive from the HIA and a four-lane highway would connect it to the airport.

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Sri Lanka’s First IT Park to be Set up in Hambanthota. Two Singaporean & Indian Firms Express Commitment

08th July 2011, www.island.lk

The government has decided to set up Sri Lanka’s first information technology park at Hamanthota. Two institutions, one Singaporean and the other Indian, having already expressed their willingness to undertake the setting up of the IT park.

Work in connection with this will commence shortly, the ICT Agency of Sri Lanka (ICTA) said announcing its support of the e-Sri Lanka initiative for the proposed Hambanthota IT park.

ICTA Chairman Professor P. W. Epasinghe said that in particular ICTA’s professional skills would be provided for the relevant project at maximum level.

Similarly while several institutions aimed at providing employment in the IT/BPO sector will be set up, plans are under way for setting up a computer assembling factory.

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Hambantota to Have a Floating Dock of 12,000 DWT for Ship Repairs by Colombo Engineering Enterprises

18th April 2011, www.dailynews.lk, By Charumini de Silva

Colombo Engineering Enterprises will invest on a floating dock in Hambantota. Colombo Engineering Enterprises (CEE) Chairman Kiran Atapattu said the company will complete a floating dock in Hambantota by early next year.

The project will be funded in collaboration with CEE and a Chinese company with an investment of US$ 25 million.

He said the Chinese company has already conveyed their confirmation to build this floating dock. CEE has completed a feasibility study on the floating dock.

The floating dock will be capable of handling 12,000 dead weight tonnage (DWT).

"During the post war scenario; we have observed a significant number of foreign investors have shown their interest in investing in Sri Lanka. Hence, the company expects to set up a ship repairing facility in the Hambantota as it is an essential factor for an international port," Atapattu said.

The investment of the ship repairing facility is around Rs 500 million and it is fully funded by the CEE. The repairing facility will be completed within a period of one year.

He said Sri Lanka is located in the centre of the Eastern and the Western shipping route, enabling to attract many shipping lines to place more ship repair orders and that it would not be a difficult task.

Marriott & Hyatt Inspect Land in Sri Lanka’s Sports City in Hambantota Planned for 2018 Commonwealth Games Hosting Bid

23rd March 2011, www.bloomberg.com, By Anusha Ondaatjie and Asantha Sirimanne

Marriott International Inc., the biggest U.S. hotelier, and Hyatt Hotels Corp. (H) inspected land in Sri Lanka’s southern district of Hambantota to build 200-room hotels each, Nalaka Godahewa, chairman of the Tourism Development Authority said today.

Sri Lanka has included these two properties in a “sports city” plan as part of its bid to host the 2018 Commonwealth Games, Godahewa said in a telephone interview.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net

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• Commonwealth Games 2018 Candidate City Hambantota Unveils the Model with 20 Key Venues

Commonwealth Games 2018 Candidate City Hambantota Unveils the Model with 20 Key Venues

18th March 2011, www.island.lk

The Organising Committee (OC) of the Commonwealth Games 2018 Candidate City Hambantota is planning to unveil the model of its Games City today, Saturday March 19, 2011.

The model, which has been prepared by a talented Sri Lankan design team, consists of twenty key venues and facilities including an athletics stadium, an aquatic centre, a multi-sports complex, a velodrome stadium and a hockey stadium. The recently built Mahinda Rajapaksa International Cricket Stadium also serves as a key venue of this city plan and all other sites including the Games Village are to be constructed around this spectacular stadium, a statement said.

The guest of honour at this ceremonial event will be Mike Hooper, Chief Executive Officer of the Commonwealth Games Federation (CGF). He will participate at the event at the invitation of Mahindananda Aluthgamage, Co-Chairman of the OC and Minister of Sports; Ajith Nivard Cabraal, Co-Chairman of the OC and Governor, Central Bank of Sri Lanka.

Minister Dilan Perera, MP Namal Rajapaksa, Udaya Seneviratne, Secretary, Ministry of Sports, Hemasiri Fernando, President, Common-wealth Games Associa-tion Sri Lanka, and Nalin Attygalle, CEO, CWG Hambant-ota 2018 (Pvt) Ltd. will also attend the function which is expected to be attended by Business Leaders, Sports Leaders and Media persons.

Mike Hooper is scheduled to arrive today (19) and during his stay in Sri Lanka, he will visit the proposed games city, Hambantota. In addition, he is scheduled to visit a few other ongoing infrastructure development projects in Sri Lanka including the Hambantota Port and Mattala Airport.

The key purpose of the CEO’s visit to Sri Lanka will be to understand the steps being taken by Hambantota as a Candidate City for the Commonwealth Games in 2018 and to assess the commitment and preparedness of the city towards hosting the games.

By displaying the progress of ongoing developments and by explaining as to how set deadlines have been met, the OC is confident that CGF would be convinced of the ability of Sri Lanka to construct the proposed venues in time for the commonwealth games in 2018, in the event the bid is won by the City of Hambantota.

In the meantime, the OC is in the process of preparing an attractive bid document under the 15 stipulated themes and the bid book is due to be submitted to the CGF on 11th May 2011. In addition to submitting the bid book, the OC will also convey the city’s commitment to host the games, while showcasing the country’s heritage, beauty and potential.

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Global Energy to Set up a 150,000 bpd Refinery in Hambantota Magampura Port City

13th March 2011, www.thebottomline.lk, By Santhush Fernando

World renowned Global Energy has signed a Memorandum of Understanding (MoU) to set up a 150,000 bpd (Barrels Per Day) refinery in the emerging port city of Hambantota.

The refinery estimated to cost between US $ 1.5 to 2bn (Rs.166.5 to 222bn), is said to be thrice the size of the current state-run Sapugaskanda Refinery and will mainly refine crude oil for the export market, with Hambantota poised to become a mega global hub in energy, shipping and aviation.

A former Chairman of Ceylon Petroleum Corporation and a current director of Chevron Lubricants Lanka Plc is the local coordinator for the project while a former DGM of CPC and a Geology professor of University of Peradeniya is also involved in the project. Already they have 24 employees with them,” a high ranking official of the Ministry of Petroleum Industry told The Bottom Line.

However, he added that it was unfortunate that the line ministry was not kept informed that a MoU on a petroleum industry-related project was signed.

“No one knows which government institution has signed this MoU. The Ministry Secretary Titus Jayawardene was not aware of these developments. How can the ministry take a proper decision on whether to go ahead with the US $ 2.2bn Sapugaskanda Project if it is not aware of the private project! The Ministry or the CPC cannot gamble with funds because these are public moneys which the country must repay later on. If the private refinery is coming up, it is good because we may not have to find a staggering amount such as Rs. 244.2bn (US $ 2.2bn),” he lamented.

Numerous energy experts and think tanks have time and again emphasised the need to have a refinery in Hambantota if the country was to emerge as a global player in the energy industry.

“Various parties have applied for refineries in Hambantota. South Korea, ETA Ascon of Dubai and Petrochina subsidiary - China HuanQiu Contracting and Engineering Corporation that built the Muthurajawela tank farm, are among them. But Global Energy is said to have been eying this since 2000 and had also concluded a preliminary feasibility study. They seem to be very serious about the refinery project,” he added.

Meanwhile The Bottom Line exclusively reported last week that a high-powered government delegation was scheduled to visit Iran, in a bid to revive the Rs. 244bn Sapugaskanda Oil Refinery Expansion and Modernisation (SOREM) project that has been in the limbo since 2007 and to appeal Iranian authorities to extend repayment period up to twenty years.

In 2007, The Nation exclusively reported that UAE-based ETA Aston Group was planning to invest US 1.2bn in mega oil refinery in Hambantota, and had also identified a 400 acres of Mahaweli land in Mirrijjawila.

Last year, Petroleum Industries Minister Susil Premajayantha announced that he had received a proposal from Petrochina subsidiary - China Huanqiu Contracting and Engineering Corp to set up a refinery in the Hambantota district targeting the export market. Petrochina or China National Petroleum Corporation (CNPC) is China’s largest oil and gas producer and supplier, as well as one of the world’s major oilfield service providers and a globally reputed contractor in engineering construction, with a presence in nearly 70 countries.

National Insurance Trust Fund Finds Business Opportunities in New Ventures at Hambantota Magampura Port

11th February 2011, www.dailynews.lk, By Indunil Hewage

New business ventures to be set up in the Magampura port premises will bring more business opportunities to the National Insurance Trust Fund (NITF).

A leading company in the world has sought Sri Lankan Government approval to set up a vehicle assembling plant in Hambantota.

At the moment the company has forwarded required documentation for land allocation in the Magampura port premises. The company is planning to export utility jeeps to South Asian countries after assembling the vehicles in the Hambantota, National Insurance Trust Fund Chairman Senaka D Abeygoonasekera told Daily News Business.

He said these ventures will bring more business opportunities to NITF with regard to insurance needs of the company.

The world is looking at Sri Lanka with a lot of hope and Sri Lanka will be on par or better than Singapore by 2020. Enough resources and a knowledgeable population who can adopt to the changing technologies and latest trends in the economy in a speedy manner would assist in achieving set targets in the country’s economy.

Many investors are eyeing Sri Lanka and the Magampura port will also be a vital transit point in the shipping and air cargo facilities generating more foreign exchange to the country, he added.

In addition, National Insurance Trust Fund has made an investment worth of Rs 1.2 billion in 2010 with the Urban Development Authority to support the Colombo Restructuring plan. The investment was made under the guarantee of Bank of Ceylon at the UDA debenture issue.

“Idle lands and old buildings in the Colombo city will be used in the Colombo restructuring project by eliminating the ugliness they bring to the city.

There are so many unauthorized buildings in the city and under the project these structures will be removed while giving unauthorized dwellers alternative accommodation,” he said.

The project will help mitigate the floods and rain water drainage system issues in the Colombo city with the removal of unauthorized buildings which have been put up in an uncontrollable manner,” Abeygoonasekera said.

Sri Lanka's MAS Holdings Invests $3.15mn on MAS Active Asialine Factory at Hambantota

27th January 2011, www.dailynews.lk, By Charumini de Silva

MAS Active - Asialine, the newest facility of MAS Holdings will open today in Middeniya, Hambantota with a total investment of US $ 3.15 million. MAS Active - Asialine General Manager Venura Attanayake said MAS Holdings took over this company in 2006 with an initial investment of US $ 2.2 million.

The company then invested in machinery and in August last year the company decided to increase the capacity. At present, the company has provided over 1,500 employments for the area from which it was around 750 employees.

Attanayake said the company invested around US$ 950,000 as the second phase investment.

MAS Active - Asialine has been graded as an ‘A’ grade plant.

The company intends to enhance the productivity of the company further, which currently runs at an average productivity range of 50 to 65 percent.

MAS Active - Asialine is an integrated facility to handle woven and knit products with a capacity to produce over 600,000 pieces per day, while catering to the USA, UK and European markets. The company is actively involved in Asian market too.

The company practices the MAS Operating System (MOS) education to create industry leadership in lean manufacturing and innovation, which will help to raise the quality and craftsmanship of products.

“Our team is focused on being environmental friendly while taking ecological systems into consideration.

This factory is also committed to reduce the carbon footprint in the process and conserve water,” Attanayake said.

Sri Lanka Opens Bids for Industries by 25 Parties at Hambantota Magampura Port Next Week

26th January 2011, www.lankabusinessonline.com

Sri Lanka's ports authority will open financial proposals by 25 parties to start industries at a Chinese built port in the island's south next week, chairman Priyath Bandu Wickrema said.

He said a government committee had completed preliminary scrutiny of 25 proposals for suitablility and financial bids for the projects will be opened next week.

Wickrema has said that firms wanting to process cement, iron ore, fertilizer, sugar and vehicle assembly had given proposals.

Sri Lanka's 'Magampura' port in the Southern Hambantota town is a 360 million US dollar Chinese-built project.

It will be used for ship refueling and also as an industrial port. There are about 100 acres available to industries inside the spacious port, an official said.

Related Info :
• Sri Lanka President Commissions Hambantota Magampura Port. 2nd Phase of Construction Begins
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Sri Lanka to Open Bunker Terminal at Hambantota Port. $130mn Facility Offers Capacity of 82,000 Metric Tonnes

08th January 2011, www.dailynews.lk

Sri Lanka plans to open a $ 130 million fuel bunkering terminal with a capacity of 82,000 metric tonnes at its new Hambantota port in May, the island nation’s Ports Authority said on Friday.

Hambantota, which opened in November, is set to be Sri Lanka’s biggest port once completed and give the Indian Ocean country access to traffic on one of the world’s biggest East-West shipping lanes, located a few kilometres off its southern coast.

“We will start bunkering in May,” Sri Lanka Ports Authority, Chairman Priyath Wickrama, told Reuters.

“Our target is to reach 4 million tonnes storage, with bulk transhipments.” China Exim Bank has loaned $ 77 million toward the cost of the terminal, which the Ports Authority will operate. China has loaned Sri Lanka the bulk of the money to build the $ 1.5 billion port.

The Ports Authority has said China would have no operational role in the bunker terminal, the only part of the port not open to external investment.

Sri Lanka Insurance for a 5 Star Hotel in Hambantota by 2013

30th December 2010, www.news360.lk, By Prasanna C Rodrigo

Sri Lanka Insurance Corporation says, its proposed 5 star hotel in Hambantota will be operational by 2013. The Managing Director of SLIC Mohan De Alwis said, “We will start constructing the hotel by mid 2011”.

According to him, the hotel will see an investment of Rs. 3 to 4 billion. De Alwis added, “We are planning to fund the entire project”.

The hotel with 200 rooms will be a subsidiary of SLIC and will operate under the name of “Sri Lanka Insurance Resorts and Spa Private Limited”.

Sri Lanka Insurance Corporation is also currently looking for a suitable partner to help them manage and market the hotel.

De Alwis disclosed, “We are already negotiating with few parties”. According to him those parties are very well known internationally. “If the prospective partner is ready to put some equity, we are ready to accept it”, said, Mohan De Alwis.

The hotel, which is the first “star class” leisure facility to come up in Hambantota, is expected to be built across seven and half acres. The location is closer to the “Peacock Beach” said the official.

FPS Lanka for Operations at Southern Port of Hambantota and Eastern Trincomalee Harbour to Handle Post-war Reconstruction Cargo

29th December 2010, www.lankabusinessonline.com

Sri Lankan logistics firm FPS Lanka is considering setting up offices in the new southern port of Hambantota and in eastern Trincomalee harbour to handle an anticipated influx of cargo flows for post-war reconstruction.

It expects new logistics contracts to be awarded in the first quarter of 2011 as projects get finalised, FPS Lanka managing director Gihan Nanayakkara told LBO in an interview.

The firm is a joint venture between Bertling Logistics India and Famous Pacific Shipping which got together to offer logistics services, especially given the expected increase in cargo flows for post-war reconstruction and growth.

Sri Lanka's 30-year ethnic war ended in May 2009 resulting in an economic boom, with growth forecast to hit eight percent this year, along with a sharp increase in tourists. Nanayakkara said the joint venture is the first time the parent firms are collaborating and the partnership could be extended to other locations if necessary.

Sri Lanka embarked on huge infrastructure projects even before the war ended, with several highways, railways, power plants and high-rise buildings being built along with an airport and port in Hambantota and another port in Colombo.

Hambantota port was opened only a month ago and lies close to the main maritime trade route.

Nanayakkara said Bertling its own fleet of ships, including heavy lift ships, and can provide the specialised heavy lift skills needed for post-war Sri Lanka where such skills are in short supply.

Nanayakkara said the joint venture has access to skilled personnel and equipment in south Indian ports and can take only a few days to mobilise.

The company is also considering business opportunities in the Maldives where a tourism revival means more resorts are being built.

"Every island resort has its own harbour basin which means dredging, a pier, and transport of almost all supplies by air or sea," said Nanayakkara.

In Sri Lanka, while some major projects are under construction many more are in the pipeline with logistics contracts to ship the supplies required expected to be awarded in the first quarter of 2011.

One project the FPS Lanka joint venture supplied was the 300MW power plant in Kerawalapitiya, on the north-west coast.

Buckingham Place Affirms Belief in Sri Lanka with New Boutique Resort

18th December 2010, www.theopenpress.com

While Hambantota Harbour, the new airport, plus a whole host of development initiatives progress rapidly, investors are keenly aware of associated benefits they will bring to the Hambantota District and Sri Lanka as a whole. High-end ‘designer’ tourism is yet another sector experiencing high investor confidence and with it, unparalleled growth.

British born entrepreneur Nick Buckingham clearly demonstrates his belief in Sri Lanka and Hambantota with his greatest commitment so far, Buckingham Place.

At this refreshingly new boutique resort at Rekawa near Tangalle, modern standards of comfort coupled with discreet service blend naturally with the tropical southern coastline and natures’ paradise.

Buckingham Place offer 11 ‘designer’ bedrooms and bedroom suites, designed with sensitivity to be at one in harmony with the natural environment. All have south westerly views over the vast Rekawa lagoon, home to many varieties of birds that you can watch either from the comfort and privacy of your balcony or by venturing out in one of the resorts canoes.

A spectacular deserted beach where the ancient leather back sea turtles nest is only 70 metres walk from the gates of Buckingham Place while a cycle ride through the local village is rewarded by glimpses of everyday life and quite often by monkeys swinging from trees – a real “off the beaten track” experience.

Inspired by his own love of the island, Nick aims to provide guests with an opportunity to experience some of the best that Sri Lanka has to offer. Scenery; its unspoilt beaches, tranquillity; Rekawa’s own lagoon – a haven for tropical birdlife and; adventure - with a taste of local culture, heritage and cuisine.

So what is behind the Buckingham Place byline - Believe in Sri Lanka?
“Unprecedented investment in sensitive, high quality tourism infrastructure and the current widespread optimism say it all. Sri Lanka is fast evolving into a must visit destination especially amongst discerning, independent travelers in search of an un-spoilt destination” says upbeat Nick. “…this is where my best life experiences have happened too so it makes perfect sense for me to be here and invest here. There’s something really special about Sri Lanka and when I’m away from it I’m homesick - in fact more so than when I’m away from the UK!”

So here’s a rare chance to experience Sri Lanka up close, by bicycle, in a canoe or on foot. If you’re in Rekawa more than a few days you might even get involved with ‘Community Links’ the resort’s own social responsibility initiative - support for village micro projects. You might just want total relaxation though – something not hard to enjoy at this unique boutique resort.

Soft opening
Opening its gates to acclaim, Buckingham Place warmly welcomes local and international travelers – mostly arriving from Colombo, the UK and Western Europe. “Over the coming months we’ll refine what we do and define what works. Being hidden away is our biggest headache” Nick jokes, “making sure people don’t get lost on the way” An excellent map on the website appears more than adequate however.

Happily the restaurant is very easy to find... Chef Wasana who hails from Moneragla produces a heartfelt array of fusion dishes as well as the traditional Sri Lankan rice and curry. “Cooking is hot and hard work but that doesn’t really matter, especially when guests congratulate us and appreciate our effort” You’ll even find an authentic fish & chip lunch as good anywhere in the UK (not to be missed) while vegetarians, dessert lovers and fussy kids are all looked after very well.

Whether you are visiting Sri Lanka to relax or explore it’s likely that within a day or so you’ll feel very reluctant to leave the sanctuary of a really great room, in this beautiful, homely and very hospitable ‘boutique’ resort.

During the resorts soft opening period great value introductory rates include a la carte breakfast for two plus all taxes and service charge – great value indeed for memories to treasure forever.

To check availability and rates please email: reservations@buckinghamplace.lk or check the website: www.buckinghamplace.lk. Alternatively, visitors can reach Director Nick Buckingham on his mobile phone by dialing + 94 777 717473.

Company history
In 2002, following several wonderful holidays in Sri Lanka Nick Buckingham formed a Board of Investment (BoI) approved company to construct Buckingham Place. Breaking ground the following year, works continued until the Tsunami of 2004. With an uncertain future at that time Nick remained in the country during its ‘hour of need’ initiating and managing the BTRTDH Trust – a massive and highly successful endeavor to rehabilitate and equip Tangalle’s only hospital.

With the hospital project complete, resort construction restarted in 2008, continuing through until September 2010.

Focused on directing the resort full time, Nick plans to expand operations in due course by completing ‘phase 2’ hopefully to coincide with the opening of the new airport.

“As soon as phase 1 is established and when we’ve had sufficient guest feedback I’ll get on with the expansion – in readiness for opportunities created by the development of Hambantota District and the airport in particular. For now I just want to relax a little, enjoy paradise and…. continue believing in Sri Lanka….”

Sri Lanka President Commissions Hambantota Magampura Port. 2nd Phase of Construction Begins

18th November 2010, www.priu.gov.lk

Sri Lanka’s new deep sea port 'Magama Ruhunupura Mahinda Rajapaksa Port', Hambantota on the south coast of the island has today (Thursday 18 November) been officially opened with the ceremonial docking of the first vessel to use the port facilities.

At the auspicious time of 11.57am, the second phase of the port began construction.

In a ceremony presided over by President Mahinda Rajapaksa as part of the week long festivities surrounding his official inauguration for his second term in office, a ship dropped anchor in Hambantota’s Magampura harbour to a traditionally warm and colourful Sri Lankan welcome from the huge crowds gathered on the waterfront and quaysides.

Mr. Sang Guowei, Special Envoy of the President of PR of China, Hu Jintao was among those who attended the ceremony. Mr. Sang is the Vice Chairman of the Standing Committee of the National People’s Congress of the People’s Republic of China.

A traditional sailing yacht was chosen in recognition of Sri Lanka’s age old role as a key stopping point on the ancient east-west silk trading route. It was followed into harbour by the Sri Lankan passenger ship Jetliner.

Phase One of the port, operated by the Sri Lanka Ports Authority and completed this year ahead of the scheduled completion in April 2011, is an integral part of the Government’s programme of economic action and reconstruction of transport and trade infrastructure after the successful conclusion of the three decade long struggle against LTTE terrorism. It lies at the heart of a strategy to make Sri Lanka an import/export, marine services and transshipment hub at the locus of key worldwide shipping routes.

The port is located just 10 nautical miles from one of the world’s busiest shipping lanes, used by up to 200 vessels every day, and can handle vessels of up to 100,000 DWT.

A government spokesman said: “The successful completion and opening of the superb docking and cargo facilities at Hambantota epitomises the determination of the Sri Lankan Government and people to capitalise on the opportunity that is offered by the island’s new era of peace, to bring prosperity to all.

“The opening of Hambantota port ushers in a new era which will transform Sri Lanka’s important transport and shipping industry. We look forward to welcoming increased global trade through what is one of the world’s most modern ports.”

Phase one of the new Hambantota port was constructed by the China Harbour Engineering Company at a cost of some US$ 360 million and includes provision for a high quality passenger terminal, cargo handling, warehousing, bunkering, provisioning, maintenance and repair, medical supplies and customs clearing facilities.

The 2,000 hectares of land immediately surrounding the new port is to be developed as a dedicated investment and industrial zone, with 65 domestic and international investor businesses having already expressed an interest. It is anticipated that, once phase two of the Hambantota port project is completed in April 2011, the port will provide 40% of Government income by 2020 and create 10,000 direct and over 60,000 indirect new job opportunities.

Further Government expansion of, and investment in, modern port facilities is underway at Galle, Oluvil, Trincomalee, Kankasanthurai and Colombo.

Lanka IOC to Expand Bunkering Business to Hambantota Magampura Port

12th November 2010, www.dailymirror.lk, By Sunimalee Dias

The company aims at growing with more activities taking place in Sri Lanka, LIOC Managing Director (MD) Suresh Kumar said yesterday. He noted that these changes would be carried out internally in a bid to improve its efficiency as part of an ongoing process.

Kumar observed that should the Government permit it, LIOC would also expand bunkering in Hambantota as well. The Government is expected "to take a view at the appropriate time" in relation to allowing bunkering operations to get underway.

The LIOC MD observed that they believed Hambantota would prove to be of immense value to its operations.

LIOC lost Rs.422 million in the year to March 2010 down from Rs.1, 237 million a year earlier but had boosted bunkering sales to 15 per cent of its total revenues.
The company's sales of bunkers or ship fuel had risen to 149 million litres from just 21 million litres a year earlier.

Revenue from bunkers had grown to Rs.7.7 billion (15.3% of total) from Rs.977 million a year earlier as total revenue rose 5.4% to Rs.50.2 billion.

LIOC is an overseas venture of Indian Oil Corporation Ltd. and is listed in the Colombo Stock Exchange.

Sri Lanka Hambantota Magampura Port Attracts Vehicle Assembly and Cement Manufacture

22nd October 2010, www.lankabusinessonline.com

A new port being built in Sri Lanka's southern Hambantota has drawn investment proposals from local and foreign businesses including the local Senok Combine and Micro Car for vehicle assembly, officials said.

Madras Cements, India's fifth largest cement maker and part of Chennai-based Ramco Group, has also proposed investing in a cement terminal at the port, a greenfield site to be operated as a free port with no taxes.

A Sri Lanka Ports Authority statement said that 27 local and foreign companies among 63 that collected the request for investment proposals have submitted bids.

"The response shows investors are keen to invest in the new port," said Agil Hewageegana, SLPA chief engineer in charge of the port project in Hambantota known as Magampura Port.

He said some of the local firms that sent proposals are in joint ventures with foreign partners.

The new deep water harbour close to the main shipping route across the Indian Ocean, to function initially as an industrial port, was built by Chinese firms and largely funded by Chinese loans.

The SLPA received six investment proposals for cement terminals in Hambanthota when bids closed last week, two for vehicle assembly, two each for liquid petroleum gas and petro-chemical complexes, and three for warehousing.

Investors have also bid to set up a sugar refinery and a fertilizer plant.

The two local firms interested in vehicle assembly are Senok Trade Combine, agents for vehicle manufacturers like Audi, Subaru and Skoda, Transmec Engineering, which assembles the 'Micro Car' in Sri Lanka.

Pakistan's Jamshoro, based in Lahore, which had bid for part of the Shell Gas assets in that country has submitted a proposal for an LPG terminal.

Proposals petro-chemicals investments have come from a Singapore firm and Advance Surfactants Lanka, which makes industrial chemicals.

The SLPA said a total land area of 2,000 hectares belonging to the Magampura Port will be available for local and international entrepreneurs.

"Magampura Port is being developed as a multi-purpose, industrial and service port and aims to make the best of the expanding markets of the Indian sub-continent, with short transit times to India, Africa and the Gulf region," it said.

The government plans to start phase two of the project during the last quarter of this year with the contract agreement recently signed between China Harbour Engineering Company and SLPA.

The financial assistance would be extended by the the People's Republic of China on a concessionary basis, the statement said.

The second phase will expand and deepen the harbour, adding more berths and cranes to handle containers.

10 Leading Fund Management Companies Explore Investment in Sri Lanka. Avendus, Edelweiss, General Atlantic and Morgan Stanley among Them

19th September 2010, www.thebottomline.lk

Heads of more than 10 leading fund management companies in the international financial sphere will be in town from tomorrow to explore possibilities in investing in Sri Lanka.

The delegation consists of Avendus Capital’s MD Nikil Kapadia, Edelweiss Capital’s MD Shankar Raman, General Atlantic’s MD Abhay, ISS Shipping’s MD Eddie Filus, a representative from Morgan Stanley Infrastructure, RBC Capital Market’s Country Head for India Akhauri Sinha, RBC Capital Markets MD William Kostoff who is also the head of Global Equities, T A Associates’s MD Naveen Whadera, and MD of WL Ross Ranjeet Nabha.

A workshop titled ‘Sri Lanka Unveiled-Importing Wealth’ will also be held from Monday (tomorrow) to Wednesday with the participation of the delegates and the event is organised by the Royal Bank of Canada and the Thani Group in collaboration with the BOI, Aimlight, and Business for Peace Alliance.

According to the organisers of the workshop, the delegation has around US$ 80 billion at their disposal. Sri Lanka, currently, has a Foreign Direct Investment flow of US$ 0.6 billion.

The Tuesday session of the workshop is scheduled to be held in Trincomalee as the delegation is expected to visit there and hold discussions with the Trancomalee Chamber of Commerce. In the evening, the delegation will be flown from Trincomalee to Hambantota to hold discussions with the Hambantota Chamber of Commerce.

Apart from this delegation, representatives of several other fund managing companies such as Actis Group, Bain Capital, Carlyle Group, Cordiant Capital, and Providence Equity have sent their representatives to Sri Lanka to have a feel on the Colombo Stock Exchange which was rated one of the best performing markets in the world, The Bottom Line learns.

“They have already met key officials of several blue chips which are mainly into leisure and logistics and they have a list of 18 selected blue chips under the radar for possible investments,” a market source who did not want to be named said.

Even though Sri Lanka was rated one of the best performing markets since the end of a bloody civil war the country suffered, an element of doubt had been created by the exiting of foreigners from the market on a regular basis.

Several foreign funds which announced their interest over both private and public equity in Sri Lanka at the beginning were also seen more or less silent embedding this element of doubt to the minds of the investors.

According to analysts, the arrival of a delegation of this calibre will certainly counter this element of doubt to some extent and more foreign interest will seep through to the country as well as to the stock market.

Sri Lanka was recently placed ahead of Russia, India and China by the Fobes magazine in its ‘Countries for Business’ list and Standard and Poor increased the country’s credit rating to B+ from B.

Sri Lanka Hambatota Port Draws Dubai & Singapore Service Providers

13th September 2010, www.lankabusinessonline.com

Service providers in the trade hubs of Dubai and Singapore have shown interest in a new port in southern Sri Lanka where a request for proposals from businesses has been issued, an official said.

The Sri Lanka Ports Authority said it has issued a request for proposals from international and local firms or consortia to design, build, finance, manage and operate business ventures at the new port of Hambantota.

The deadline for proposals is September 30, 2010.

"Now we are getting a lot of requests from service providers in Singapore and Dubai," SLPA chairman Priyath Wickrama said.

"From Hambantota they can easily feed both the east and west coast of the Indian sub-continent."

Cargo flows are increasing from India whose economy is growing fast. Transhipment cargo from the Indian sub-continent is sent either through Colombo, Singapore or Dubai.

Both Singapore and Dubai have used their geographical location on the main East-West shipping route to emerge as trade and cargo hubs.

The SLPA has said it is keen to use the position of the new port at Hambantota, only a few miles from the main East-West shipping route across the Indian Ocean, to make it a hub for the south Asian region.

The SLPA began filling the new port's basin in mid-August with the first ship expected to berth by year's end.

A team of local and foreign entrepreneurs who obtained the Request For Proposals were recently taken for a visit to the new port.

Under the phase two of the project investment and business ventures will be available for cement grinding, storage and bagging, fertilizer storage and bagging, LP gas distribution, ware housing, vehicle assembly, flour milling, and food processing and packaging.

Wickrama said the SLPA is also developing a marketing plan for the terminals in Colombo and Hambantota.

"We are going to market Sri Lanka, not only terminals," he said. "We have a product to market now. Earlier we had concepts to market but now we have a product."

He said port capacity is being built up to attract cargo volumes as existing capacity at both government and the private terminal in Colombo port is nearing their maximum.

"To attract volumes to Sri Lanka we must have capacity; otherwise we might not attract regional volumes on a large scale."

Related Info:
Sri Lanka Hambantota Port Invites Investments of $1.5bn, Largest Single Investment Option for Foreign Investors

Sri Lanka's Hambantota Harbour 1st Phase Completes with Filling of Water by President Mahinda Rajapakse