BOI investments grow 8 percent

By Naalir Jamaldeen

The Board of Investment (BOI) has approved export projects with an export value of US$ 5.9 billion by November last year, an 8 percent growth compared to the US$ 5.5 billion in the corresponding period of 2012, according to Investment Promotion Minister Lakshman Yapa Abeywardane. The export value for December 2013, has not been finalised and when this value is included, the total export value will be over US $ 6.05 billion, he said.

According to national statistics, total export for 2013 was US$ 9.4 billion and the export value for 2012 was US$ 9.77 billion.

However, exports of BOI approved projects in 2013 have exceeded BOI approved export projects in 2012. The contribution of BOI approved projects to national exports was high, Minister Abeywardane said.

There are 1,723 projects in commercial operation under the BOI. According to a survey carried out by the BOI, the tax holiday period of 1,056 projects expired in 2013 and the companies have started paying corporate tax.

Another 95 will be added to the tax paying list this year, 101 in 2015, and 71 in 2016.

This will increase the contribution of BOI projects to government tax revenue, he said.

The new projects due to commence commercial operations between 2014-2016 were not included in this calculation.

The Biyagama Export Processing Zone of the BOI won the third place under Public Institute category at the National Green Awards 2012, organised by the Central Environmental Authority and Silver award for Social Dialogue and Work Place Cooperation from the Ministry of Labour and Labour Relations, he said.

Sixty projects valued at Rs 57 billion are in operation in the Biyagama EPZ. Exports in 2013 had shown an increase of 11% over that of 2012.

Overall, the profits of all the EPZs have shown an increase in 2013 compared to 2012, he said.

UAE based Onyx Industries will invest US$ 300 million to manufacture value added titanium dioxide from mineral sand. The proposed plant will be built in Kappalthurai, Trincomalee. The project will also produce super phosphate for the manufacture of fertiliser, he said.

Australia based Energy Puzzle Group is to invest US$ 190 million in a project to manufacture solar panels and cells.

The plant will be set up in Mirrijawila. Spain based RIU Group is to invest US$ 80 million jointly with Aitken Spence, the Minister said.

A hotel with 500 rooms will be constructed with an investment of US $ 80 million and 1,000 employment opportunities will be generated by this, he said.