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| Sunday, 21 September 2003 |
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Three domestic airlines start operations The Board of Investment (BOI) has received five applications to establish domestic airline companies, of which three will start operations next month in time for the winter season. This was said by BOI Chairman and Director General Arjunna Mahendran last week at a media conference on BOI's performance for the first half of 2003. He said three Malaysian companies will start operations in the area of gas distribution early next year. This is proof that investors are interested in investing in different areas due to the peaceful situation in the country together with the stable economic and political situation, said Mahendran. During January to June 2003, the BOI received Foreign Direct Investment to the value of Rs 17 billion compared to Rs 5.5 billion received during the same period of last year. Minister of Enterprise Development, Industrial Policy, Investment Promotion and Constitutional Affairs Professor G.L. Peiris said the main reason for this increase is the peaceful atmosphere prevailing in the country due to the 19-month long ceasefire between the Government and the LTTE. He said local investments worth Rs 16.5 billion have also been recorded, an increase of 56 per cent over the Rs 10.6 billion earned during the first half of last year. Investment approvals have also risen by 240 per cent, reaching Rs 47.5 billion compared to the Rs 13.9 billion during the corresponding period of last year. Sixty per cent of the projects approved by the BOI this year have already been implemented. The new projects have generated over 33,000 direct employment opportunities and 15,000 indirect jobs as opposed to 19,768 job opportunities created during the first half of last year. The year has also witnessed a better spread of investments both on sectoral and geographical basis. BOI's investment portfolio now represents sectors such as telephone, television and radio communication networks, electrical and electronic goods, fabricating metal, warehousing and freight forwarding and software development. "We are now trying to attract investors into non-traditional sectors with a high value addition." "Earlier, investments were mostly made in the Western Province, but the establishment of Regional Economic Development Commissions has helped investments to spread to other parts of the country, resulting in employment generation and other economic benefits for people in areas such as Kandy, Kegalle, Kurunegala, Monaragala, Matale and Anuradhapura," the Minister said. Recent one-to-one discussions between government officials and the private sector in Japan, China, Singapore and Malaysia show a significant increase in optimism on Sri Lanka's growth prospects. The BOI sector accounts for a significant proportion of the country's export and import earnings, contributing 69 per cent of total exports and 36 per cent of total imports for the first half of 2003. BOI exports for the January to June 2003 period were valued at US$ 1650 million, a 16 per cent increase over the US$ 1419 million during the corresponding period of 2002. (SG) |
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