Incentives to Private Sector to Invest in University Research in Sri Lanka. Professionals Overseas Express Willingness to Come Back

31st January 2011, www.dailymirror.lk, By Kelum Bandara

The government has decided to give income tax concessions to private sector companies that invest in research work at local state universities in Sri Lanka, officials said yesterday.
Higher Education Ministry secretary Dr. Sunil Jayantha Navaratne told Daily Mirror yesterday that any university could now undertake research in various fields under private sector sponsorship.

Dr. Navaratne said that the public sector had insufficient funds for investment in this sector and, therefore, the country had lost many opportunities to introduce new services and products through research.

He said, “If a company invests Rs.10 million, twice that amount would be deducted from their income tax. Companies take a risk in making such investments. Research can sometimes end in failure or take years to produce results.”

“In other countries, research is carried out through public-private partnership. The transistor radio was also developed through a similar system. The private sector can invest in university research and enjoy this tax benefit,” he said.

He also said that 10-15 university lecturers who were working overseas had expressed their willingness to come back, after the government’s announcement that they could return despite having violated the conditions of the bonds they had entered into with their respective universities.

“I have received letters from 10-15 lecturers living abroad,” he said.

Asked about the facilities to be given to such lecturers, he said, “They can send their children to quality schools here. We will also be able to pay them better in the future.”

Related Info :
• Sri Lanka Invites Top Professionals Abroad to Return Home as Economy Improves

Sri Lanka Domestic Airports to be Commercialized under Public Private Partnerships

29th December 2010, www.news360.lk

Sri Lanka says, work towards transforming several domestic airports to commercial airports is now underway.

Secretary to the Ministry of Ports and Aviation Ranjith de Silva said, among those airports ranks Palaly, Trincomalee, Ampara and Ratmalana.

He said, the commercialization of the above Airports will be carried out under the basis of public – private partnerships.

According to De Silva, already a private party has forwarded a proposal showing willingness to develop Ratmalana airport into a commercial airport.

The Government expect investments to come into develop runaways and terminals along with other facilities in the above airports.

Once the Domestic Airports are commercialized, a air travelers to Sri Lanka can directly rchase a ticket to the above airports from any location in the world.

Citing an example De Silva said, “A passenger boarding in in from Heathrow airport can directly purchase a ticket to the Palaly airport”

“He will have to get down from BIA and get into a domestic flight flying to Palaly”, added the Aviation Ministry Secretary.

DSI Group with University of Moratuwa Establishes R&D Unit for Rubber Products following PPP Incentives in Last Budget

23rd December, 2010, www.island.lk

DSI Samson Group recently signed an agreement, with University of Moratuwa and Uni-Consultancy Services to jointly establish a Research and Development unit for Rubber based Products and Process development. The event took place at the University of Moratuwa on 16th December 2010.

DSI Samson Group is a well established diversified Sri Lankan conglomerate and a leading manufacturer and exporter of rubber based products.

The company is aiming at developing its research facility base to compete successfully with the competitors in the international market.

"Government of Sri Lanka has given attractive incentives to the private sector to carry out Research & Development projects through recent budget proposals and we are very keen on getting the best out of the opportunity" said Kulathunga Rajapaksa, the managing director of DSI Samson Group.

He further added that rubber based product manufacturing industry contributes to approximately 5% of the total export revenue of Sri Lanka and the competitiveness of the industry can be improved through Public Private Partnership.

Steep increase in rubber prices during the current year has made the Sri Lankan rubber products highly un-competitive in the global market.

Research and development plays a vital role in maintaining the competitiveness of the local rubber products manufacturers in terms of cost reduction and quality improvement.

US Road Show in Sri Lanka on Doing Business. Private Public Partnership (PPP) Conference to be Held Today

13th October 2010, www.dailynews.lk, By Sanjeevi Jayasuriya

Sri Lanka will showcase investment and trade opportunities the country could offer for US companies with a series of discussions and visits for potential areas.

“We have 25 foreign company representatives who are currently in Sri Lanka exploring opportunities. There are 17 US companies and 10 Indian based US companies among the visiting delegation,” a Commerce Department official told Daily News Business.

The delegation is led by the Assistant US Trade Representative for Central and South Asia Michael Delaney together with US Government officials.

The peaceful and conducive environment in the country has helped emerging investment and trade opportunities. The delegation visited Jaffna yesterday to gain first hand information on opportunities available. The inauguration of the Private Public Partnership (PPP) conference will be held today with the participation of private sector business executives, representing US companies based in the US as well as India.

There will also be talks under the US-Sri Lanka Trade and Investment Framework Agreement (TIFA) to create awareness to capture opportunities.

The US delegate visit was organized by the Sri Lanka Embassy in Washington with the Commerce Department and the US Embassy in Sri Lanka.

Meanwhile the US Embassy in Sri Lanka, in a press release said the Embassy, together with the US Commercial Service and the US Small Business Administration, is organizing a road show seminar called Doing Business which will visit several locations in Sri Lanka. The first seminar, featuring the Assistant US Trade Representative Michael Delaney, will take place in Colombo on October 15. Subsequent seminars will be held in Galle (October 18), Kandy (October 20) and Trincomalee (October 21).

The improved business climate in Sri Lanka following the end of the ethnic conflict and the opening up of the North and East for trade and investment makes this an opportune time for the business community to learn more about increasing trade between the United States and Sri Lanka. According to the Commercial Director at the US Embassy in Colombo, Ken Kero-Mentz, this is the first Embassy Doing Business seminar that will visit some of the key provinces outside of Colombo.

It will give out valuable information to help expand rural economies and assist small and medium-sized enterprises (SME).

The “Doing Business” seminar will include in-depth presentations by officials from the US Embassy, the US Foreign Commercial Service, and the US Small Business Administration. Sri Lanka’s Export Development Board will introduce the sessions. Each seminar will conclude with a discussion led by a Board member from the American Chamber of Commerce and leaders of the local business chambers.

US technology and knowledge can help Sri Lanka’s companies compete effectively in the today’s challenging international markets.

Speakers at this “Doing Business” seminar will talk about partnering and doing business with US companies and increasing competitiveness in the global economy.

They will also discuss Sri Lanka’s export sector, buying American products as a way to grow Sri Lanka’s economy and the growing importance of SME’s in the global financial system.

The “Doing Business” seminar is expected to attract importers, business people, members of trade associations, manufacturers, and entrepreneurs interested in learning more about how doing business with the United States can help their bottom line.

USAID Launches $2bn Business Alliance Program in North/East of Sri Lanka to Create 5000 Jobs

20th April 2010, www.dailynews.lk

The U.S. Agency for International Development announced a new business alliance program with Sri Lanka’s private sector.

Partnering with five local businesses, the USAID Public-Private Partnerships for Northern and Eastern Sri Lanka (PPP) Program is expected to create around 5,000 full-time jobs in the North East.

These five alliances are all with indigenous Sri Lankan private companies. USAIDs investment of about Rs.600 million will generate an additional Rs.1,400 million investment from the private sector for a total of about Rs 2 billion.

The sectors include aquaculture, apparel manufacturing, logistics, and horticulture.

By establishing a ready-made garment plant in Omanthai, near Vavuniya in the Northern Province, an alliance between USAID and a leading garment manufacturing and export company will create 1,000 jobs for the internally displaced people, including young widows.

An alliance between USAID and a Sri Lankan aquaculture company will bring expanded production in the Eastern and Northern provinces with the dual goal of increasing fish-based income and enhancing the aquaculture supply chain of high value seafood products. By the end of the three-year project, 1,300 smallholder farmers will increase their net income by 300 percent.

A leading logistics company will invest in logistics activities to help farming communities.

Through this alliance, farmers in Northern and Eastern provinces will have an opportunity to increase both their production and income.

At least 1,500 farmers and fishermen will benefit from this alliance.

Cold storage units will be built in Jaffna, Ampara, and Batticaloa.

An alliance between USAID and a Sri Lankan horticulture company will improve the productivity and profitability of fruit and vegetable farming in Jaffna, Vavuniya, and Mannar by minimizing post harvest losses and by enhancing farmers skills in modern farming.

Around 1,100 farmers will participate in the program.

In order to rebuild economic security in the Eastern Province, the alliance with a local garment company will invest in a ready-made garment factory in Samanthurai in Ampara.

The ready-made apparel manufacturing plant will consist of 15 to 20 machine lines and more than 1,000 employees.