BOI signs record 46 new agreements worth $ 982 m in June

In the month of June 2016, the Board of Investment of Sri Lanka has signed 46 agreements of a total value of $ 982 million estimated investment. 

The BOI said these projects cover a wide range of sectors such as manufacturing, construction, mixed development, hotel, mini hydro power, trading house, solar power, apparel, research and development and education. In addition, once they start operating, these projects will generate an estimated 8,000 new direct employment opportunities.

BOI Chairman Upul Jayasuriya formally signed the agreements with the investors on behalf of the BOI. BOI has focused on fast racking investment facilitation, resulting in a high number of projects being approved. 

Apartment complexes: As Colombo develops very fast the demand for apartments will correspondingly increase. Hence 11 agreements have been signed to set up new apartment complexes. The projects will change the Colombo skyline. A total estimated investment in this sector would be around $ 259 million and it will generate 900 direct job opportunities. 

These 11 projects include Arum Developers Ltd., Barrington Global Ltd., Vivesta Constructions Ltd., KSK Construction Ltd., Blue Ocean Legend Ltd., STK Quickshowa Ltd., City Square Projects Ltd., Capital Trust Residencies Ltd., Pearl Residency Ltd., Decent Homes Japan Ltd. and Capital Trust Residencies Four Ltd.  

Manufacturing: Being one of the key sectors manufacturing still remains as a dominant sector in the country. Presently over 33% of the total exports under the BOI is contributed by the manufacturing sector other than apparel and over 61% of the national industrial export other than apparel is contributed by the export oriented manufacturing projects operating under the BOI. 

A total number of 10 new agreements have been signed to set up various manufacturing projects such as health devices, boat building, pharmaceutical products, granite tiles, organic fertiliser and soft toys etc. An estimated investment of these 10 agreements would be $ 296 million and generate 2,400 employment opportunities.

The projects are Screen Line Imaging Ltd., Hand Hi Safety Products Ltd., GL Yatching Asia Ltd., Hands Pharmaceuticals Ltd., Goodwill Granite Ltd., Global Advance Recycling Lanka Ltd., Trinco Pallets Ltd., Saru Export Ltd., Ceylon Waste Management Refinery Ltd. and Kohinoor Floors Lanka Ltd.

Hotels: The tourism sector has been experiencing an impressive growth after restoration of peace in the country. As a result of presence of international brands such as Shangri-La, Sheraton, Marriott, Grand Hyatt, Movenpick and Onyx investor confidence have grown immensely. Hence there are seven new agreements have been signed to set up hotel projects with an estimated investment of $ 133 million and will create 950 direct job opportunities. 

Summer Season Ltd., Sofia Colombo Ltd., The Golden Crown Hotel Ltd., Galle Heritage Lanka Ltd., Marine Drive Hotel Ltd., Management and Investment Combine Ltd. and Hurihela Pathana Ltd. have signed to set up hotel projects.

Mixed development: Mixed development projects which reflect an urban development will include residential housing, shopping complexes, supermarkets and recreational facilities. A total number of six agreements signed to set up mixed development projects in Colombo area. The projects would invest for $ 200 million with 558 employment opportunities. 

Asian Relators and Developers Ltd., Havelock City Ltd., Southgate Property Development Ltd., Abans Land Ltd., Lupa Investent Ltd. and Earl’s Reality Ltd. have signed agreements in this sector  

Trading house: Trading houses specialise in facilitating transactions between a home country and foreign countries. A trading house is an exporter, importer and also a trader that purchases and sells products for other businesses. Trading houses provide a service for businesses that want international trade experts to receive or deliver goods or services. 

As Sri Lanka considered emerging logistics centre in Asia investor confidence is being grown in this sector. Hence four new agreements were signed to set up trading houses with an investment of $ 40 million and will generate 510 direct employment opportunities. DPL International Ltd., Edtra Apparel Company Ltd., T & FG Trading Ltd. and Lulu Hypermarket Ltd. have signed agreements to set up trading houses.

Mini hydropower: As power generation is one of the key areas of investment, BOI encourages investment in this sector. Three new agreements have been signed to set up mini hydro power projects in Mathale, Meegahakiula and Haguranketha. The electricity generated by the mini hydro power plants will be supplied to the National Grid.

Ecas Kiula Ltd., Loggaloya Hydro Power Ltd. and Marj Company Ltd. have signed agreements with an investment of $ 10 million with 55 new job opportunities.

Vydexa Lanka Power Corporation Ltd. signed an agreement to set up a 10 MW solar power plant with an investment of $ 15 million. Glovtech Innovation Ltd. signed an agreement to set up a research and development lab for glove technology. The facility will be located at Munagama, Induruliyedda.

IIT International Ltd. signed an agreement to set up a higher education institute in Colombo with a $ 14 million investment. St. Anthony’s Properties Ltd. has entered to an agreement with BOI to set up an office complex. This project will be located in Colombo 9 with an investment of $ 13 million. 

In 2016 the BOI laid the foundation for a higher quantum of Foreign Direct Investment (FDI) in the years to come. This was achieved by the identification and implementation by the BOI’s management of ways by the improvement of service quality towards the investor with the objective of making Sri Lanka a highly-competitive, business-friendly destination.