Investment Opportunities in Sri Lanka. Agenda 1.Brief profile of Sri Lanka 2.Infrastructure facilities available for investments 3.Investment opportunities.
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Investment Opportunities in Sri Lanka
AgendaAgenda
1. Brief profile of Sri Lanka2. Infrastructure facilities available for
investments3. Investment opportunities4. Business environment5. BOI and BOI incentives 6. Discussion
1. Brief profile1. Brief profile
Total population 20.2 Mn.
Literacy rate 90.8%
Male 92.7%
Female 89.1%
Life expectancy
Male 68
Female 75.6
Per capita GDP (At Market Prices) 2,014 US$
Key economic indicators - 2008
Source : Central Bank of Sri Lanka, 2008
Brief profile Brief profile contd…contd…
4.0
6 .0
5 .45 .8
7 .46 .8
2002 2003 2004 2005 2006 2007
0
1
2
3
1
1
6
7
8
Gross Domestic Product (GDP) growth rate
in Sri Lanka2002-2007
Source : Central Bank of Sri Lanka
82181 171
233287
603
734
888
0
200
400
600
800
1000
2001 2002 2003 2004 2005 2006 2007 2008
US$ Mn.FDI Trends (2001-2008)
Brief profile Brief profile contd…contd…
Source : Board of Investment of Sri Lanka
2. Infrastructure facilities2. Infrastructure facilities
• Passenger movement 5 Mn /Per annum
• Cargo movement 250,000 tons / Per annum
• Highest number of flights to India from any country
Colombo Airport
Colombo South port development (under construction)
5 days transit time to Dubai• Centrepoint on the East/West sea
routes• Gateway to the Indian subcontinent
World Port Ranking • No. 1 in South Asia• Total container throughput 4 Mn. TEUs• Transshipment cargo 70%
Colombo Port
Infrastructure facilities Infrastructure facilities contd…contd…
Capacity to be increased - 11.7 million by 2012
Hambantota port development
• A gas-fired power plant project • A ship repair unit • A container repair unit • An oil refinery • A bunkering terminal
Infrastructure facilities Infrastructure facilities contd…contd…
• Development cost - US$ 1 billion.• The project includes:
• Nearly 150, 000 ships passing Sri Lanka annually
• Sri Lanka’s strategic location in the sea routes are important in connecting East to the West.
Telecommunications
Infrastructure facilities Infrastructure facilities contd…contd…
– SEA-ME-WE III – SEA-ME-WE IV (Connectivity Bandwidth -
1.32 terabits per second)
• Sri Lanka is being developed as regional hub for telecommunications• Fastest growth sector driven by public private partnership• Development of faster and more efficient technologies• Fiber Optic Cables with SEA-ME-WE IV
fiber cable network
Power
4. Pipeline projects
• Trincomalee Coal Power Project
• LNG Power & LNG Terminal
• India Sri Lanka high-tension Power Connection
1. Main power sources
- Hydro - 52%- Thermal - 48%
2. Projects under construction• Norochcholai Coal Power Project • Upper Kothmale Hydro Power Project
Infrastructure facilities Infrastructure facilities contd…contd…
3. Future requirements
• Total existing capacity- 2650 MW
• Additional capacity by 2015 - 2500 MW
Industrial/Free Trade Zones
12 industrial zones with all infrastructure
facilities administered by
the BOI
Infrastructure facilities Infrastructure facilities contd…contd…
Nawaloka Hospital, Colombo
Health Care up to International Standards
Apollo Hospital, Colombo
Infrastructure facilities Infrastructure facilities contd…contd…
Educational institutions of international standards
Infrastructure facilities Infrastructure facilities contd…contd…
Prestigious Hotels / Leisure Facilities
Golf Courses
Hilton, Colombo
Infrastructure facilities Infrastructure facilities contd…contd…
Modern Office Complexes
World Trade Center, Colombo
Infrastructure facilities Infrastructure facilities contd…contd…
Luxury Residential Apartments
Havelock City, Colombo
Infrastructure facilities Infrastructure facilities contd…contd…
Finance and Banking
Standard Chartered, ColomboColombo Stock Exchange
Infrastructure facilities Infrastructure facilities contd…contd…
3. Investment Opportunities3. Investment Opportunities
a) Garments, Textile & Apparelb) Software Industryc) BPO/KPOd) Gems & Jewellerye) Tourismf) Agriculture & Dairy Farming g) Fisheries
Garments, Textile & Apparel
• Developed into a sophisticated industry from mere tailors to total solutions specialists.• Garments without guilt.• Approximately 44% of the total exports.• Pioneer in green factories.
Global brands/buyers:
• Victoria’s Secret• Gap• Marks & Spencer• Triumph
3. Investment Opportunities 3. Investment Opportunities contd…contd…
Software Industry
• A highly literate workforce with a solid mathematical background.
• Easily trainable & strong analytical skills
• Low levels of attrition.
• High linguistic adaptability
• Value of IT industry exports – 2008 - US $ 250 million – Target for 2012 - US $ 1 billion
• Leading companies include Millennium Technologies, Virtusa, IFS, hSenid
3. Investment Opportunities 3. Investment Opportunities contd…contd…
Orion City IT Park , Colombo
BPO/KPO
Our Success stories
• HSBC• WNS• OfficeTiger/ RR Donnelly• Amba Research
• World’s 2nd largest pool of UK-licensed Financial Accountants
• Connected to SEA-ME-WE-4 fiber optic network
3. Investment Opportunities 3. Investment Opportunities contd…contd…
Gems & Jewellery
• Emerging precision gem cutting and finishing center in the world.
• 75 out of 200 varieties of gem stones are found in Sri Lanka.
• Sapphire capital of the world.
• Duty free facility on import of gems.
• Value of exports in 2008 - US $ 530 million.
Target for 2013 - US $ 1 billion.
• Main markets are USA, Switzerland, Thailand, Hong Kong, Japan, France, Germany, Singapore and UAE.
3. Investment Opportunities 3. Investment Opportunities contd…contd…
Tourism
• Focus on upmarket tourism
• Increasing regional tourist arrivals
• Access to diversified attractions (bio-
diversity, cultural sites, wild life reserves
and beaches).
• Current room capacity- 14,700 rooms.
Target for 2015- 25, 000 rooms.
Opportunities for investors
• Tourism related infrastructure• Theme parks• Golf courses
3. Investment Opportunities 3. Investment Opportunities contd…contd…
Tourism Development - Northern and Eastern provinces
• Trincomalee - Ocean City
• Arugam Bay- Resort for surfing
• Pasikudah - National Holiday Resort
• Jaffna - Beach Resort Apartments
• Kalpitiya - Beach Resort Island
Tourism
3. Investment Opportunities 3. Investment Opportunities contd…contd…
Mannar
Ampara
North
East
Trincomalee
Baticaloa
Jaffna
KilinochchiMullattivu
Vauniya
Agriculture & dairy farming • Diverse agro climatic zones
• Processing and value addition opportunities for export marketeg: Middle East and Japan
• Control agriculture, green house and drip irrigation technology.
• Large lands in Eastern Province.
• Opportunities in local dairy marketImports - US $ 300 million.
• Zero tariff for agricultural products to India & Pakistan and European Union.
3. Investment Opportunities 3. Investment Opportunities contd…contd…
Rubber based industries
• World’s largest manufacturer of solid rubber tyres.• Renowned for high quality crepe rubber.• Leading international glove supplier .
Our Success stories
• Ansell - Australia• CEAT - India• Loadstar - Belgium• Trelleborg - Sweden
Investment Opportunities Investment Opportunities contd…contd…
Fisheries
• Investment opportunities - Deep Sea Fishing &
Processing - Aqua-culture
• Development of New Port/ Fishery harbours.
• Export to Europe ( with GSP+) and Japan & Singapore
Investment Opportunities Investment Opportunities contd…contd…
Maritime Zones of Sri Lanka
• Total Foreign Ownership.
• No restrictions on Repatriation of Earnings.
• Safety of Foreign Investments Guaranteed by the Constitution.
• Commercial Law is based on the British Laws.
4. Business environment4. Business environment
Investment Protection (over 20 Countries)
• Australia
• Canada
• China
• France
• Germany
• India
• Indonesia
• Iran
• Japan
• Korea
• Malaysia
• Pakistan
• Singapore
• Thailand
• UK
• USA
Business environment Business environment contd… contd…
Double Taxation Relief (over 30 countries)
• Canada
• China
• France
• Germany
• India
• Iran
• Japan
• Jordan
• Kuwait
• Korea
• Malaysia
• Pakistan
• Saudi Arabia
• Singapore
• Thailand
• UAE
• UK
• USA
Business environment Business environment contd… contd…
Special Tariff Preferences for Sri Lankan products
• Indo-Lanka FTA - 4,232 products (zero duty)
• Pakistan-Sri Lanka FTA - 4,686 products (zero
duty) • EU GSP + - 7,200 products
(zero duty)
Business environment Business environment contd… contd…
55. . Board of Investment of Sri Lanka & BOI Board of Investment of Sri Lanka & BOI incentivesincentives
• Established in 1978.
• Functions under the Ministry of Enterprise Development and Investment Promotion.
• Government authority to promote and approve foreign investments.
• First contact point for foreign investors.
BOI incentivesBOI incentives
• Export oriented manufacturing & services.
• Tourism & Leisure.
• Agriculture & food processing.
• IT, IT enabled services & BPO.
• Education & Training.
• Power Generation, Transmission and Distribution, Petroleum & Petroleum Products.
• Textile & Fabric Manufacture, Printing, Dying, Washing & Finishing (deemed exports).
• Development of Highways, Ports, Airports, Public Transport and Water services.
3 to 15 Year Tax Holiday
BOI IncentivesBOI Incentives contd….contd….
• Export Oriented Manufacturing• Export Oriented Services
• Infrastructure• IT Enabled Services• Agriculture
Duty Free Imports
On Capital Goods & Raw
materials
Only on Capital Goods
Exemption from Exchange Control Applicable to companies that export goods and services and/or receive earnings in foreign exchange
Major Investors by Country (2008)Major Investors by Country (2008)
CountryFDI
(US$ Mn.)
1. Malaysia 150
2. India 126
3. Netherland 117
4. UK 87
5. Luxembourg 82
Total - US $ 888 million
USA Companies - 76Total FDI - Over US$ 200 Mn.
US companies in Sri LankaUS companies in Sri Lanka
www.investsrilanka.com
Thank You
Sri Lanka – Gateway to South Asia
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