BOI inks biggest-ever FDI deal of $ 4 billion

Friday, 15 June 2012 02:58 - - {{hitsCtrl.values.hits}}

The Board of Investment (BOI) yesterday signed an agreement with Sri Lanka Gateway Industries (Private) Ltd., a venture by India to spearhead Sri Lanka’s highest-value-ever Foreign Direct Investment project, for the development, operation and management of a special industrial zone for heavy industries, in the Trincomalee District.

BOI Chairman M.M.C. Ferdinando (left) shakes hands with Sri Lanka Gateway Industries Chairman Prabath Nanayakkara whilst exchanging the agreement signed yesterday

As per the agreement this project will come under the Strategic Development Act.

The project master plan includes the development of a deep water jetty, bulk commodities terminal with stockpiling and blending capabilities, power generation plant, and a host of other heavy industries and complementary industries. The project will be delivered in three phases, with a total investment exceeding US$ 4 billion.

This project will open opportunities for many export/import markets in the Asian, African, Australian and American continents, and provide a strategic access gateway to satisfy the growing demands of the Indian market.

In addition to the above, the Trincomalee region will be benefited through direct and indirect employment opportunities, social and community development and creation of new skills during construction and long-term operation of the project. It is expected that over 5,000 direct employment opportunities and over 20,000 indirect employment opportunities will be created from this project.

Sri Lanka Gateway Industries will establish a vocational training centre to enhance the professional skills of the local community of the region, thereby targeting many job opportunities for the local population.

The company has completed detailed feasibility and engineering studies and will be adopting World Bank environmental standards as a benchmark for the project.

On signing the agreement, Sri Lanka Gateway Industries Chairman Prabath Nanayakkara expressed confidence that the heavy industrial zone will change the economic landscape of Sri Lanka and be a stepping stone for the transformation of Sri Lanka to be an industrialised nation.

“The signing of this landmark project is an indication of the growing international investor confidence in Sri Lanka. Just a few years ago, it was difficult to envisage an investment of this magnitude in Sri Lanka and I am confident that this BOI project will herald a new era of prosperity and growth of investment in the country,” BOI Chairman M.M.C. Ferdinando said.