Eight new economic zones in 2014

Friday, 6 December 2013 00:01 - - {{hitsCtrl.values.hits}}

Three zones for H’tota; largest one earmarked for Vavuniya
Infrastructure development to be completed next year
US$ 4.6 b export earnings from BOI companies

By Uditha Jayasinghe An upbeat Board of Investment (BOI) is planning to start a record eight export processing and industrial zones scattered around the country, earmarked to begin operations in 2014. A report released by the BOI states that the new zones will aim to attract local and foreign investment, resulting in more employment. One of the largest zones will be the Mirijjawila Export Processing Zone that will cover 229 hectares of land. According to the BOI, 109 hectares have already been allocated for various projects. Infrastructure development for the zone is now in progress with internal roads, power, water supply and solid waste management to be provided by the BOI. This zone will accommodate industries under the Commercial Hub Act. The Sooriyawewa Investment Zone in the Hambantota District covering 340 hectares will include an IT park, educational institute, sports complex and hotels. Infrastructure work will begin next year. The infrastructure facilities will be provided State agencies. The Horana Industrial Zone is somewhat smaller at only 89 hectares and will hold high water consuming industries and will be developed from mid-2014. The Bellagaswewa Industrial Park of 30 hectares in Hambantota will accommodate a range of large and small industries as well as provide space for small local companies whose business will be improved by the nearby port and airport. The land for this zone will be transferred to the BOI from the Mahaweli Authority. Efforts are also being made to hold a “night bazaar” in Hambantota to facilitate travellers to the region. Puttalam (101 hectares), Trincomalee (200 hectares), Kilinochchi (40 hectares) and Vavuniya (400 hectares) have also been marked out as zones for future development. The zone for Vavuniya, which is the largest from the new sites, was suggested after apparel companies decided to move to the region due to low labour costs. “We are confident that these zones will attract investment and provide economic development to rural areas. This is part of the Government’s long term strategy and will assist to increase foreign investment,” Investment Promotion Minister Lakshman Yapa Abeywardana told reporters. Total employment generated by 1,700 BOI projects in commercial operation at the end of 2012 was 476,500 with 10,000 more jobs added in 2013. From January to September in 2013 export earnings of BOI companies amounted to US$ 4.62 billion, which is a 3% increase from the previous year. This was mainly contributed by the apparel sector that accounted for 62% of earnings. Exports from BOI companies made up 63% of national exports for the first three quarters, tagging up a value of US$ 4.62 million. BOI companies made up 85% of industrial exports as well. The BOI approved 118 projects for 2013 with 105 agreements signed and 55 commencing commercial operations. The BOI has indentified 50 structured projects in 12 key sectors to promote for local and international investment.

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