BOI facilitation pays dividends

The BOI has succeeded in attracting a number of important projects in key sectors of investment due to the introduction of new procedures.

When these investments are realized, 66 new projects and expansion of 45 projects will be operational, resulting in an estimated inflow of US$ 1.6 billion Foreign Direct Investments (FDIs) and generating an estimated 16,075 employment opportunities.

These projects reflect growing investor confidence in Sri Lanka under the present management of the BOI which has introduced new methods to fast track investment including a 'One-Stop-Shop', a BOI official said.

The BOI signed three agreements with Dialog Axiata PLC, Dialog Broadband Networks (Pvt) Ltd and Dialog Television (Pvt) Ltd for an investment of US$ 175 million. The investment by this company revolutionized Sri Lanka's telecommunication and television sector.

Another significant agreement signed by the BOI this year was with Senok Automobile (Pvt) Ltd, to assemble Volkswagen vehicles in Sri Lanka. The investment worth US$ 26.5 million brings Sri Lanka into the age of automobile manufacturing. Volkswagen is the world's second largest car manufacturer and has opted to set up a base in Sri Lanka.

An agreement was signed with MG Sugar Lanka (Pvt) Ltd to revive the Kantale sugar factory. This is a 30-year project run on a Built, Operate and Transfer (BOT) basis between the Government (51% shareholding) and the foreign investor (49% shareholding). This investor is from Singapore and will create 1,220 employment opportunities. The estimated value of the investment is US$ 100 million.

Other significant agreements entered into this year include Airport Express Air and Rail Co (Pvt) Ltd to build an urban township which will link Colombo with Katunayake. The investors are from Malaysia, Portugal and Denmark.

As the inflow of tourists to Sri Lanka grows, there will also be a corresponding growth in investment in the tourism and leisure sector. One such project is the joint venture between Sri Lankan and Chinese companies to build a 176-roomed tourist hotel in Panadura. The estimated value of the project is US$ 20 million. Jie Zhone Jie Lanka Developing Construction Engineering (Pvt) Ltd signed the agreement with the BOI to construct the hotel. There are several other agreements relating to tourism and the leisure sector that were signed this year.