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| Sunday, 11 July 2004 |
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| News Business Features Editorial
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Katunayake EPZ lacks basic facilities Sri Lanka's first and probably the oldest Export Processing Zone (EPZ), Katunayake EPZ is faced with many inadequacies in respect of power, water and transport. There are even some security lapses, investors complain. Due to the lack of these basic infrastructure facilities at the EPZ many investors are discouraged to go for expansions, while others are leaving the zone,sources said. However, it seems that no proper development plan has been carried out by any successive government since its inception in the late 70's, another leading investor said. These grievances were expressed by investors to Deputy Minister of Industry, Tourism and Investment Promotion Arjuna Ranatunga, when he met investors at the zone under the aegis of the Board of Investment (BOI). It had been brought to the Minister's notice that more than 80,000 employees were at the zone some years ago but that number has dwindled to 51,000 now. Many believe that the irregular power cuts and water problems coupled with a poor transport system has caused a major negative impact on the zone. Deputy Minister Ranatunga said that when many countries in the region emerge as foreign- investor- friendly countries in the world, Sri Lanka still does not have a proper strategic plan to attract foreign investors. He also said that the BOI has not done its job although it had spent a lot of money in the process. Most of the existing investors said that the electricity is of inferior quality and is also inconsistent, which has a harmful effect on machines operating in the zone . The zone one of the largest in the country contributes 20 per cent of the island's total export earnings. At present there are more than 82 companies operating within the zone. Some investors even said the transport system is also not satisfactory therefore workers find it difficult getting home after work. When we take stock of this situation one find that the Katunayake EPZ has not been developed to cater to the present investor requirements. It has been noted that water has to be pumped to the zone either from the Maha Oya or Seeduwa. Frequent water cuts occurred due to the lack of water resources in the zone Given the present unsatisfactory conditions in the zone, Its water problem cannot be solved immediately, a water tank needs to be built and that will take several years. Mr Ranatunga however promised to solve the electricity problem as soon as possible by establishing a power station at the zone. But the water problem cannot be solved in the foreceable future, due to lack of funds and resources, another investor said. The Deputy Minister said that these problems have to be solved with immediate effect to attract quality investors to the country as soon as possible and promised to address these priorities. He said that countries like Vietnam Cambodia and Bangladesh offer various incentives for investors such as free water and electricity, which has attracted them in numbers . Electricity charges which are highest in the region have left decision makers in a quandary. BOI Executive Director (Investor Services and Zones) R.M Karunaratne said that the BOI will facilitate the establishment of Employees Councils. The BOI is issuing a set of guidelines to promote employees of the zone in the decision making process, which is a new concept, he said. Karunaratne said that the council will consist of elected representatives of eligible employees of an enterprise representing different enterprises and categories of workers. (HHS) |
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