BOI creates over 500,000 indirect jobs

By L.S. Ananda KANNANGARA

Currently the Board of Investment (BOI) operates 12 Export Processing Zones (EPZ) which are large and well equipped with the necessary infrastructure needed by modern industries.

EPZ's employ nearly 130,000 people at over 280 enterprises out of the over 500,000 indirect jobs created under the BOI, said BoI Chairman M.M.C. Ferdinando.

He said in view of the global changes taking place, a brainstorming session was held at the Board level, to see how best the zones could contribute to the greater benefit of the country.

The government envisages the construction of up to 12 new EPZ at several locations in the island. Work is currently under way on the Trincomalee - Heavy Industrial Zone and there will be other new zones in the former conflict-affected areas such as a Tourism Activity zone at Mullativu, an Agricultural Sector Zone in Batticaloa and one in Jaffna.

These will create considerable opportunities for the people of those areas through direct and indirect employment.

The BOI also plans to start a new Investment Promotion Zone in Puttalam. Matara will have an Education Zone and part of the BoI's existing zone at Mirigama will also be reserved for an education sector project.

A new zone near Katunayake will be opened and will supplement the existing zone there, which is the BoI's oldest and most developed EPZ, Ferdinando said. Also important are the Investment Promotion Zone at Sooriyawewa and the Export Processing Zone at Mirijjawila which are to be built in the South of the island to support Sri Lanka's modern and model post city of Hambantota.

'We also plan to build industry specific zones which will create industrial clusters and result in some economies of scale. Hence in the future, there will be BoI zones dedicated to the manufacture of chemicals, pharmaceuticals or knowledge-based industries", he said.

"A point which I would like to stress is that future BOI zones will go beyond being large enclosed industrial parks and emerge as vital economic units which are integrated to townships. This will make them an integral part of the social fabric of urban centers", the Chairman said.

"The BOI is looking at private-public partnerships in the construction and management of EPZs, so you will appreciate that our thinking on the future of EPZs is in line with much of the latest concepts and ideas", Ferdinando said.

BOI Director Media and Publicity Dilip S. Samarasingha said, "In the future, a growing share of the FDI to Sri Lanka is likely to come from the growing economies of India and China. In recent years there have been visits by a number of Chinese delegations to the BOI to assess the potential the country offers to Chinese investors.

A recent visit by the Indian Minister of Commerce and Trade also created great interest for Indian FDI in Sri Lanka. Currently most of the exports from Sri Lanka produced by BOI enterprises go to traditional trading partners such as the USA and European Union".

"Sri Lanka's strategic plan is to emerge as a hub in five key areas by capitalising on the island's central position. This includes plans to become aviation and naval hub, an energy hub, a telecommunications hub, a knowledge hub and a commercial hub. These provide some idea to potential investors of the general direction of the country which is based on her central position in the Indian Ocean at the crossroads of Africa, the Middle East, South Asia, East Asia and Australasia.

Sri Lanka's relative proximity to areas such as the ASEAN bloc, India and China, which are enjoying rapid economic growth will further strengthen this hub concept", the Director said.

The Free Trade Zone Concept introduced to the country in 1978 became operative with the setting up of the EPZ at Katunayake under the Greater Colombo Economic Commission.

Its first chairman was business magnate Upali Wijewardene. Later in 1990 the jurisdiction of the Greater Colombo Economic Commission under its new title Board of Investment of Sri Lanka extended to cover the whole island.

More investment opportunities are available at present in other Industrial Zones than Katunayake and Biyagama.

The government wellcomes investors to the FTZs which have all the infrastructure and other facilities for industries.

The foreign investors looking for industrial zones with world class proven infrastructure in the heart of Asia, could launch their ventures in Koggala Export Processing Zone, Kandy Industrial Park, Horana Export Processing Zone, Mawathagama Export Processing Zone, Mirijjawila Industrial Park and Seethawaka Export Processing Zone.