BOI projects generate over 475,000 jobs

by Naalir Jamaldeen

As at December 2012 the jobs generated by Board of Investment approved projects was 476,500 and employment generation was expected to increase by a further 10,000.

The export earnings from BOI approved enterprises from January to September was US$ 4,621 million in 2013. This shows a 3 percent increase compared to the corresponding period in 2012, according to Investment Promotion Minister Lakshman Yapa Abeywardane.

"The textile and apparel sector was the main source of income and contributed to 62 percent of exports. Rubber and export oriented services amounted to 15 percent and 6 percent from the industries approved by the BOI," he said.

National export earnings from January to September 2013 were US$ 7,327 million and export earnings of BOI enterprises amounted to 63 percent (US$ 4,621 million) of national export earnings.

The contribution to industrial exports through the BOI from January to September 2013 was 85 percent. Accordingly fabricated metal, machinery and transport equipment comprised 2 percent, non-metalic and mineral products 3 percent, chemicals, petroleum, coal, rubber and plastics 15 percent, paper, paper products, printing and publishing 1 percent, wood and wooden products 1 percent, textile, apparel and leather 62 percent, food, beverage and tobacco 5 percent, services (including (agriculture sector and industries) 5 percent and other manufactured products 6 percent.

The BOI, under the Strategic Development Project (SDP) Act facilitated 10 projects with an estimated investment of US$ 5,984 million. The realised investment under SDP projects up to the third quarter 2013 amounted to US$ 896 million, he said.

Following the Commonwealth Business Forum (CBF) investments projects worth US$ 2 billion were added to the infrastructure and mixed development projects of BOI.

The BOI signed a number of agreements at the CBF that included an agreement with China which will invest US$ 1.3 billion to reclaim 233 hectares of land in Colombo, surrounding the Colombo port.

Another agreement was signed with the Australian based the Property Alliance Capital (PAC). The PAC will invest US$ 450 million in a mixed development project that will be built at James Peiris Mawatha. The Urban Development Authority has leased out the land for 99 years. Six acres of land will be developed, according to the Minister.

Several Memoranda of Understanding (MoU) were also signed during the CBF. The first MoU was between the Airport and Aviation Authority and China Harbour Engineering Corporation (CHEC). The estimated value of the project is US$ 640 million. The project consists of the development of two resorts at Mattala Rajapaksa International Airport and Bandaranaike International Airport.

The resort at the Bandaranaike International Airport will have 200 rooms and a car park with space to accommodate 100 cars. Entertainment facilities and a duty free shopping complex will also be set up, the Minister said.

Another MoU was signed by Airport and Aviation Services Chairman Prasanna Wickramasuriya and Vice President, CHEC, Tang Qjaling for the second project. The project consists of construction of a hotel with 200 rooms at Mattala International Airport. A golf course and duty free shopping complex will also come up at the hotel, he said.

The BOI targets at attracting US$ 2.5 billion in Foreign Direct Investments (FDI) under the Strategic Development Plan in newly introduced commercial hub provisions, countrywide tourism sector projects, manufacturing projects, and mixed development projects this year, he said.

The BOI targets to generate 10,000 more employment opportunities this year with the implementation of Strategic Development Plan project. The BOI treats the domestic investors the same as the foreign investors. As envisioned in the Mahinda Chinthana development program the SME sector has been identified as important sector to accelerate regional and social development. The BOI will provide all supports to develop these industries. The large scale domestic investments will be attracted to reach the target of US$ 875 million for domestic investments, the Minister said.

The BOI plans to set up new export processing zones in various parts of the country. Mirijjavila Export processing zone will accommodate industries operating mainly under the Commercial Hub Act.

The EPZ will be developed with all basic facilities such as internal roads, power supply system, water supply and solid waste management.

The Sooriyawewa Investment zone in Sooriyawewa in the Hambantota district in a stretch of 340 hectares will accommodate an information technology park, education institute complex, residential and commercial complex, sports complex and hotel projects, he said.

The Horana Industrial zone which belongs to the BOI has been identified as suitable to accommodate high water consuming industries. The infrastructure development works on the project will commence this year.

The BOI plans to increase the export capacity of BOI registered companies to 66 percent targeting 70 percent by 2016. Accordingly the BOI plans to earn US$ 8.8 billion in exports this year and will contribute to achieving the national target of US$18 billion in exports by 2016, BOI sources said.

The Board of Investment (BOI) has set up an 'Investor Facilitation Centre' to help investors. The entire process is coordinated by a sector team member with the assistance of other relevant authorities.

BOI Sri Lanka uses 'Lead story' and 'Latest News' links to offer new evidence that the country is a prime investment location. In alerting website users with this fresh information, these updates also act as advertisements for the IPA's professionalism and dynamism. The BOI has developed an online application system on its website in November last year.

The system is now functioning and within one month the BOI received 10 online applications, the sources said. The application of investors will be accepted online, prior to final approval. The payments can also be made online. An online tracking system has been introduced to facilitate the investor to track the status of the project that has been submitted to the BOI ensuring the process is followed within a given period.

To address speedy resolution of problems encountered by investors in the implementation of projects, the BOI has introduced One-Stop-Shop and facilitates new investment projects to obtain required approvals from line agencies expeditiously.

To facilitate potential investors with specific information on large scale investment opportunities in Sri Lanka. 50 structured projects in 12 key sectors were identified in consultation with the relevant organisations and Ministries.

The projects include tourism and leisure, universities and training institute, agriculture and fisheries sector, IT BPO and knowledge activities, port related services sector, health sector, packaging and branding industry, infrastructure development (new zones and petroleum refinery), infrastructure development (transport sector), infrastructure development (aviation sector).