Investment Opportunities in Sri Lanka. Agenda 1.Brief profile of Sri Lanka 2.Infrastructure facilities available for investments 3.Investment opportunities.

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


• 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


– 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


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


Nawaloka Hospital, Colombo

Health Care up to International Standards

Apollo Hospital, Colombo


Educational institutions of international standards


Prestigious Hotels / Leisure Facilities

Golf Courses

Hilton, Colombo


Modern Office Complexes

World Trade Center, Colombo


Luxury Residential Apartments

Havelock City, Colombo


Finance and Banking

Standard Chartered, ColomboColombo Stock Exchange


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


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


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.


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


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


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.


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


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)


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

Some of our global investorsSome of our global investors

http://rds.yahoo.com/_ylt=A9G_Rq2BrZJEVVAALTKJzbkF;_ylu=X3oDMTBjb3ZrYjNkBHBvcwM0BHNlYwNzcg--/SIG=1ijc7mim9/EXP=1150549761/**http%3A//images.search.yahoo.com/search/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253F_adv_prop%253Dimages%2526imgsz%253Dall%2526imgc%253D%2526vf%253D%2526va%253Dtrelleborg%252Blogo%2526fr%253DFP-tab-web-t%2526ei%253DUTF-8%26w=160%26h=67%26imgurl=www.nbsplus.co.uk%252Fcontent%252Fmanufacturerlogos%252Ftrelleborg_logo.jpg%26rurl=http%253A%252F%252Fwww.nbsplus.co.uk%252Fcontent%252Fmanufacturerpages%252FTrelleborgBusinessSystems.shtm%26size=5.1kB%26name=trelleborg_logo.jpg%26p=trelleborg%2Blogo%26type=jpeg%26no=4%26tt=90%26ei=UTF-8

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

Investment Opportunities in Sri Lanka. Agenda 1.Brief profile of Sri Lanka 2.Infrastructure facilities available for investments 3.Investment opportunities.

Documents

colombo slide

mw slide

discussion slide

country colombo airport

fiber cable network

second sri lanka

brief profile contd

brief profile of sri