Ministry of Economic Development
Macro Action Plan
2011-2015
Presented by P B Jayasundera
Secretary, Ministry of Economic Development
Under the guidance of Hon. Basil Rajapaksa
Minister of Economic Development
1
Making the Vision a Reality
2
Interfacing Development
Gama
neguma
Self Reliant
Household
Economy
Backyard cultivation
Cottage industries, Animal
husbandry
Medium and long term
crops
Divi
neguma

Empowered
Community
(Villages)
Access to Electricity, Water,
Irrigation, Sanitation, Primary
Health and Education
Livelihood support and
Community based economy

Community friendly local
authority
Clean environment
Business friendly systems
and procedures

Puraneguma
Developed
Townships
Connectivity through critical
infrastructure development
Connecting townships
Setting up
flagship market centers and
community facilities

Regional Growth
centers
Strategic
Initiatives
National Botanical and
Zoological Gardens network
Tourism Economy
Private Sector development
Shared
Development

3
Emerging
Economy
Divineguma – Self Reliant
Household Economic Units
o
Servicing million home economies to
empower
back yard economic activitiesAgriculture, Fisheries and Live stock ,
Small family enterprises etc by

Provision of seeds and planting
4
material
Objectives of DivinegumaA three phase graduation
Phase I - Agriculture & Food production – Food
security
Phase II- Fisheries & Livestock- Nutritionally balanced
consumption
Phase III- Small Enterprises – Value added Economy
to sustain Phases I & II
5
Divineguma - Implementation Mechanism
Cabinet Level Steering Committee (policy guidance) headed by Senior Ministers
Operational Working Group headed by the Minister
District Development Committee
(participation of district political representatives and officials)
District Operation and Review headed by the District Secretary
Divisional Development Committees
Divisional Development Committees headed by the Divisional Secretary
Operational Services
(Grama Niladari, Samurdhi Niladari, Govi Niladari and Family
6 Health Officer)
Divineguma – Million Household Economic Units
Inauguration of Divi Neguma Programme
This initiative was proposed by
H.E the president in the 2011 Budget,
targeting one million household economies in
all Grama Niladari divisions in the country
09 Public awareness meetings at national
level and 38 district and divisional level
meetings were conducted by the Hon
Minister with the participation of Ministers
and Secretaries of Line Ministries, provincial
representatives and other stake holders
Initial supply of seed, guidelines, hand books
etc were provided by the Ministry
As of now 1,455,187 home economic units
under divineguma are functional with
predominant engagement in food production
7
Divineguma – Million Household Economic Units
Home Garden - Valachchenai
Poultry Farming - Horana
 There are 1,356,594 home garden units and 94,011
livestock farming units functioning under divineguma
across the whole country
 Retired public servants, civil society organisations and
women have taken active interest in divineguma
8
Divineguma – Million Household Economic Units
Self Employment Support Program
Under self employment support
program various sectors have
been identified
Mobile shops concept was
introduced in urban centers by
providing leasing schemes. 162
vehicles have been distributed
initially in Colombo. This will be
popularised in other major
townships based on the demand
Pavement businesses have been
re-arranged in Pettah, Nugegoda
and Galle
9
Divineguma – Million Household Economic Units
Divineguma- Initial Push
The first stage concentrated heavily on
agriculture, livestock and planting for home
gardens.
Divineguma program will be extended to
cover cottage industries promoting local
production of gift items, local textiles,
handicrafts, artistic creations, spices, bricks ,
clay and cement based building material etc
to meet the increased demand arising from
the development of various industries such as
tourism , apparel , construction Industries.
Green Houses
Nurseries
Seed Farms
Agro Wells
Fertiliser
Coconut Plants
Technology transfer through the initiatives
of the Ministry of Technology and Research.
Knowledge Transfer
10
Services at door step
Grama Niladari
• 25 Households
Samurdhi Development
Assistant
• 25 Households
Agriculture Research
&
Productivity Assistant
• 50 Households
Family Health Officer
Technical and extension
services
E
M
P
O
W
E
R
E
D
• 100 Household community
• Deserving Households
11
F
A
M
I
L
Y
Gamaneguma – Empowering Each
Village




Provision of rural infrastructure to have access to
Electricity, Water, Sanitation , Communication,
Roads, Minor irrigation
Filling gaps – Maternity and Health Care Centers,
Pre-schools, Market places, storages etc on a
need basis
Livelihood development – One Village-One Crop,
Agriculture, Livestock, Fisheries, Trade,
Self employment
12
Restoration of abandoned/substandard
projects
Gamaneguma- Operational Arrangements
Overall National Program –
Ministry of Economic Development
District Development Committees
(Need assessment and prioritisation)
Divisional Development Committees
(Identification of projects, programs and budget)
Community Level Identification
Implementation by Community Participation
13
Gamaneguma 2006-2011
Expenditure - (Rs Mn)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2006
2007
2008
2009
2010
2011
14
Gamaneguma – Total Solution
R
E
S
O
U
R
C
E
F
U
L
L
 Access to roads
 Access to electricity
 Access to safe drinking water
and sanitation
 Access to small irrigation
 Quality health and education
 Livelihood development
15
V
I
L
L
A
G
E
Gamaneguma-Empowering each Village
Small Irrigation

Ussana Irrigation scheme,
Matale District


Gonawa wewa,
Anuradapura District
During 2006- 2011 period
4,699 such small irrigation
projects with a cost of
Rs 1737.5 Mn have been
completed in various villages
scattered around Sri Lanka.
716,438 farmers got access
to water to cultivate 187,960
acres.
Benefits expanded to environment
and fauna and flora.
16
Gamaneguma-Empowering each Village
Electricity
7,785 rural electrification

projects have been implemented
with a cost of Rs 2,370 Mn


Matale- Bogahalanda Electricity
Project

These schemes have provided
access to electricity to 400,467
households
It has benefited rural schools,
hospitals, religious places and
access to IT and computers in
rural Sri Lanka
Electricity has promoted
rural investment, storages,
small industries and
agricultural processing
17
Gamaneguma-Empowering each VillageAccess to quality road

Karandeniya – Thewaththa Bridge

Addaragoda - Kandegoda Road
61, 226 projects consisting of
concrete roads, small bridges and
improvement to rural and
agricultural roads have been
completed with a cost of
Rs 26,124 Mn
A population of about 700,000
have gained access to such roads
18
Gamaneguma-Empowering each VillageCommunity water

2,864 projects with each project
having capacity of 5000 liters
have been completed with a cost
of Rs 1,133.3 Mn
A population of 504,200 have
gained access to quality
Water Supply Scheme - Adampan drinking water


Karamba Drinking water project Kalpitiya
Access to quality drinking water
has improved health standard of
the rural community
19
Gamaneguma-Empowering each VillageQuality housing for the poor
Old House
Built House



18,950 houses have been built
through Diriya Piyasa
(Samurdhi Housing) at a cost
of Rs 1,201 Mn
Toilets ,and basic facilities
(access to quality water) have
been provided to improve low
income households
Cadjan thatched and temporary
houses are being converted to
quality houses
20
Gamaneguma-Empowering each VillageLivelihood Development



Cinnamon chopping- Ratnapura

14,341 livelihood projects targeting
agricultural processing , livestock ,
handicraft, building material,
light engineering, carpentry etc
have been promoted.
This has contributed to high income
and new employment for 2,83,876
people.
A number of households have
emerged as entrepreneurs.
MOED proposes to form
Samurdhi Entrepreneurs Chamber
(SEC) to harness
an enterprising society in villages.
21
Addressing substandard work
 Some of the projects demonstrate
substandard quality, incomplete work
and inappropriate projects
Regardless of who is responsible, economic
development requires correction of those and put
those projects right to give the full benefits to the
people
Nena Sala in
Ibbagamuwa
Playground in Welgala
Road22in Mutthettugala
Distribution of resources under Gamaneguma
2006-2011
Roads
Roads
Water
Small Irrigation
Water
Sanitation
Irrigation
Mathata thitha
Livelihood support
Pre-school/Health centers
23
Access to Basic Services
Access to Safe Water
100
90
80
70
60
50
40
30
20
10
0
%
%
Access to Electricity
2000
2005
2010
100
90
80
70
60
50
40
30
20
10
0
2000
2005
Registration of New Motor Vehicles
250,000
200,000
No.
150,000
100,000
50,000
0
2000
Three Wheelers
2005
Private Cars
2010
Motor Cycles
24
2010
Achievements – country witnessed a marked
reduction in poverty in 5 years
Poverty Reduction
Poverty Head Count Ratio (%)
by Sector
35
Poverty Head Count Ratio (%) National
16
30
14
25
12
20
%
%
10
Estate
8
15
6
10
Rural
Urban
4
5
2
0
0
2006/07
2009/10
2006/07
25
2009/10
2500000
The reduction in poverty is reflected in the number of Samurdi
beneficiaries.
Despite the reduction in beneficiaries, expenditure on Samurdhi is
maintained to provide enhanced assistance to deserving people.
Even if we assume doubled the poverty head count at 17.2%the no
of people receiving benefits account for 32.4%
Samurdhi Beneficiaries
2000000
Samurdhi Expenditure (Rs Mn)
1500000
1000000
500000
0
2005
2006
2007
2008
2009
2010
2005
2006
2007
26
2008
2009
2010
The strength




Samurdhi allowance scheme has generated compulsory
savings of Rs 17 Bn of which, Rs 3 Bn is on reserve
It has promoted 1043 functioning Samurdhi Banking
Societies and generated voluntary savings of Rs 15 Bn
Savings habits have promoted leasing and other
financing instruments supporting Samurdhi livelihood
activities and enterprises
Divineguma and Gamaneguma have created the
opportunities for them to move out of poverty trap
27
Delivering commitment
“fid÷re njska, fifkyiska yd fi!kao¾hfhka msreKq .u ms<sn|
ud olsk isyskh “.u keÕ=u” f,i h:d¾:hla njg m;a lrus'
miq.sh oYl .Kkdj ;=< wfma oEia bosrsmsgoS u msrsySug ,la jq .u
mqk¾cSjkh lrus'”
Mahinda Chintana- Vision for the Future-2005
28
Pura Neguma- Empowering Local AuthoritiesTwo initiatives to finance from
ADB credit facility
 Local Authority Empowerment Program –
Uthuru Wasanthaya and Nagenahira Navodaya –
 Local Authority Empowerment Program –
Local Government & Provincial Council Ministry
(proposed for the pradesheeya sabhas)
29
Pura Neguma- Northern sector
Houses
Children s’ Park
Canal System
Mosque
Community & Health
Centre
30
Pura Neguma – Operational Arrangements
National Steering Committee- co chaired by
Minister of Provincial Council & Local Govt. and Minister of Economic Development
Funding and SupervisionMinistry of Provincial Council & Local Govt. and Ministry of Economic Development
Implementation - by eligible Pradesheeya Sabhas
(committed to simplified systems and procedures, clean environment and community
infrastructure, Sathi pola and basic needs improvement)
31
Implementation of 2011 Budget
proposal- Sathi pola



2011 Budget proposed to modernise sathi pola,
three wheel stations, mobile shops, small boutiques
around religious and common places to add value to
small timers at least cost
These initiatives will also provide openings for direct
market access to producers and consumers without
intermediaries
Does not involve heavy overheads and expenditure
32
Balanced Regional Development –
Interfacing by Ministry of Economic
Development
Priorities –




3,000 km Intra Provincial Road Rehabilitation Program
30,000 Minor Tanks and Irrigation Rehabilitation Program
Flagship common facilitiesGalle Bus Stand
Construction of shops for pavement hawkers
Relocation facilities for displaced markets
Selected Economic Development InitiativesDutch Canal Rehabilitation to support Tourism corridorfrom Wattala to Negombo (old tourism resort area)
Small townships
33
Intra Provincial Roads



Three year program has been designed to restore
intra provincial roads to fill gaps in road network
development program implemented by RDA ,
Provincial councils and District secretariats
All 25 districts and 324 divisional secretariat areas
will be reached simultaneously in three phases
Phase I- 30,000 km of roads - 2011
Phase II- 45,000 km of roads - 2012
Phase III- 60,000 km of roads- 2013
All roads will be carpeted with concreting supports,
drainage and culverts and natural water ways
34
Intra Provincial Roads
Dambagalla Medagama Road (14.440km)
Madagama DSD in Monaragala District
Expenditure Rs. 6,191,154.52
Warakagoda Frosester Ferry Road (3km)
Bulathsinghala in Kaluthara District
Project Cost Rs. 30 Mn
Bonagala Rukgahawila Road (3.8km)
Attanagalla DSD in Gampaha District
Project Cost Rs. 38 Mn
35
Minor Tanks and Irrigation



Three year program has been designed to restore rural
irrigation systems and abandoned systems to fill gaps in
irrigation network development program implemented by the
Department of Irrigation , Provincial Authorities and Agrarian
Service Department
Agricultural areas will be reached simultaneously in three
phases during off cultivation periods
Phase I - 12,000 systems - 2011
Phase II- 13,000 systems - 2012
Phase III- 15,000 systems - 2013
All irrigation system development projects will be
implemented with community participation
36
Rehabilitation of Irrigation systems
Ampara
Baticaloa
Trincomalee
Polonnaruwa
37
Flagship Interventions

Development by various agencies have created gaps
by not addressing critical common facilities
(maternity clinics, bus stations, market for displaced
small businesses, drainage systems ) required to
maximise full benefits of Economic Development
38
Flagship Interventions
The Galle bus stand which was damaged by
tsunami and neglected thereafter has been
restored at a cost of Rs 414.7 Mn with
facilities for shopping and rest areas
Model maternity clinics are
being promoted with private
sector support
With the urban modernisation programs,
small traders occupying un authorised areas are
being provided with modern facilities for their self
employment activities. Two such facilities in
Pettah, Nugegoda have been completed at a cost
of Rs 41.0 mn
39
Need Assessment outcome
(in consultation of Members of Parliament09.08.2011 and 17.08.2011)
Roads
Small Irrigation
Semi Urban Facilities
Water Supply
Educational Facilities
Common Facilities
Electricity
Self Employment Support
Health Facilities
Need assessment carried out in consultation
with Members of Parliament gave higher
priority for unattended roads and irrigation
Other
40
Regional Growth Initiatives









Ruhunu Udanaya
Uthuru Wasanthaya
Nagenahira Navodaya
Sabaragamu Arunalokaya
Kandurata Udanaya
Wayamba Pubuduwa
Rajarata Navodaya
Pubudamu Wellassa
Batahira Ran Aruna
41
Ruhunu UdanayaGalle, Matara and Hambantota Districts
42
Ruhunu UdanayaInterfacing with Line Agencies and Provincial Council
to integrate Ruhuna Economy with following



Promote Economic Activities revolving around
Magampura port city (air port, port )
Develop connectivity between Katunayake –
Hambantota corridor to benefit the surrounding Rural
Economy
Promote resort development for tourism and
construction of Galle Port as a Tourism Port
Support Tea and Cinnamon cultivation and
promote value added industrial activities
43
Ruhunu Udanaya- contd..



Transform Koggala Export Processing Zone to
an Industrial Township
Assist Ruhuna University to drive Knowledge
Based Economic Activities with emphasis on
Medicine/Engineering
Develop International sports facilities
44
Ruhunu Udanaya – selected outcomes
Carpeting of Mamandala- Malpettawa Road
Palatuwa Gunarathana Vidyalaya
45
Uthuru WasnthayaJaffna, Kilinochchi, Mullativu, Mannar & Vavuniya
Districts
46
Demining Activities in North & East
Status as at 30 June 2011
Totally Cleared Area 1,571 SqKm
To be cleared
443 SqKm
47
Demining Activities in North & East
Area Cleared
District
Cumulative
(2002 to June
2011) m2
Devices
Recovered
Remaining
Hazardous area to From2002 to
end June 2011
be cleared m2
(AT, AP & UXOs)
Jaffna
33,004,149
13,130,413
196,615
Killinochchi
571,523,791
39,494,991
196,702
Mullaitivu
142,824,567
184,583,453
69,561
Vavuniya
174,178,796
31,494,489
90,348
Mannar
276,032,258
113,303,215
94,690
Trincomalee
95,232,735
16,266,644
4,428
Batticaloa
235,468,492
18,888,445
22,765
Ampara
42,876,881
24,026,481
464
Anuradhapura
174,308
2,178,935
2,584
Polonnaruwa
48,279
157,074
14
1,571,364,255
443,524,140
678,171
Total
Expenditure in 2009/2010
Agency
GoSL
HALO Trust
DDG
MAG
FSD
Sarvatra
Horaizan
MMIPE
DASH
Total
Rs. Mn
2772.88
736.82
692.7
520.56
1022.08
408.61
330.11
85.62
22.47
6591.85
48
Uthuru Wasanthaya-Activity Plan
Interfacing with Line Agencies and Provincial Council to
integrate Northern Economy with following





De-mining program
Resettlement and Livelihood development
Restoring public service delivery –
Health
Education
Rehabilitation and Skills Development
Civil administration and Judicial services
Strengthening the community –
Local Government Services
Co-operatives
Religious places
Samurdhi
Restoration of Banking , Financial Institutions and
Trade and
49
Commerce
Uthuru Wasanthaya- contd..
 Rehabilitation of Rural and Provincial infrastructure –
Electricity
Irrigation
Roads
Community Water Supply
 Reconstruction of
Highways
Railways
Ports
Fishery harbours
Major irrigation
Water supply and Drainage systems
Common facilities and Townships
National schools
Hospitals
Universities
 Investment promotion to attract Private Investment in
Agriculture
Manufacturing
Tourism and services
50
Uthuru Wasanthaya – Selected
outcomes
Karainagar
Reconstructed Houses
Reconstructed Adampan MMV

Giant’s tank rehabilitated at a cost of
Rs 289.5 Mn to provide water
for 9890 Hectares of cultivation
09 Irrigation schemes including Iranamadu
are being rehabilitated

Giant’s tank - Mannar
51
Uthuru Wasanthaya- contd.
•
NationalA- 9 , A 32 Highways
Jaffna Teaching Hospital
Jaffna water supply
Yoda wewa, Iranamadu
Vocational Training
Railway
KKS harbour
Palali Airport
Stadium
Jaffna University
52
Nagenahira NavodayaTrincomalee, Batticaloa, & Ampara Districts
53
Nagenahira Navodaya-Activity Plan
Interfacing with Line Agencies and Provincial Council
to integrate Eastern Economy with following




Restoration of housing for resettlement
Strengthening Social infrastructure
Restoration of Economic infrastructureElectricity
Railways
Roads
Water supply and Sanitation
Major irrigation and Flood protection
Reconstruction of bridges to re establish connectivity
54
Nagenahira Navodaya- contd..




Promoting agricultural base for surplus production of
Paddy, Maize, Fisheries, Livestock
Private sector investment promotion in
Storages, Marketing, Processing ( paddy milling),
Fruit and Export agriculture zone in Maduru Oya
Investment promotion in industries in
Cement, Mineral sand and Industrial zones
Promoting
Tourist resorts , Beaches,
Wild life and Bird sanctuaries
55
Nagenahira Navodaya -selected
outcomes
Renovation of Anchorage Trincomalee
Renovation of Mayadunna Vidyalaya- Ampara
Re construction of Irakkandy Bridge
Fish Market
56- Baticaloa
Sabaragamu ArunalokayaKegalle and Ratnapura Districts
57
Sabaragamu Arunalokaya –
Interfacing with Line Agencies and Provincial Council
to integrate Sabaragamuwa Economy with following




Improvement of National and Provincial roads
Construction of Urban water supply schemes
Rehabilitation of Chandrika Wewa
Horticultural centers in Kuruwita, Ratnapura
and Kegalle
58
Sabaragamu Arunalokaya – contd..




Replant and cultivate Plantation Crops
Develop Ratnapura as a Gem cutting and
processing center
Promote Echo Tourism and Leisure activities,
centered around Pinnawala Zoological Garden
and Elephant Orphanage
Develop Sabaragamuwa University and use as
a resource center for regional development
59
Sabaragamu Arunalokaya- Selected outcomes
Animal Reproductive Center- Imbulpe
Carpeting Gange yaya- Kolonna Road
Elephant Orphanage - Pinnawala
Reconstruction of Galbokka TankEmbilipitiya
60
Wayamba PubuduwaKurunegala and Puttlam Districts
61
Wayamba Pubuduwa –
Interfacing with Line Agencies and Provincial Council
to integrate Wayamba Economy with following



Rehabilitation and expansion of Provincial and
National Road network
Diversion of Deduru Oya and Expansion of
Irrigation Facilities- Deduru Oya
(to feed 200 small tanks and supply water for
30,000 hectares of new land for cultivation)
Development of Kalpitiya Tourist Resort and
Wilpattu National Park to develop Tourism
62
Wayamba Pubuduwa- contd..



Securing and restoration of Cultural and
Archeological sites (Dambadeniya,
Paduwasnuwara ,Yapahuwa and Thonigala)
Development of Paddy, Coconut, Fruits and
Vegetable cultivation and Inland fisheries and
Aquatic resources
Project Wayamba University as a resource
center for Agriculture ,Food technology and
Business management
63
Wayamba Pubuduwa – selected outcomes
Carpeting Mawathagama- Lihiniyagala Road
Rehabilitation of Pathragala Tank
64
Rajarata NavodayaAnuradapura and Polonnaruwa Districts
65
Rajarata Navodaya –
Interfacing with Line Agencies and Provincial Council
to integrate Rajarata Economy with following


Rehabilitation of all major irrigation systems
and down stream facilities
Transform the un irrigated part of Rajarata
through Moragahakanda Irrigation Project to
provide water to Weli Oya and Madawachchiya
66
Rajarata Navodaya – contd..




Establish Road and Railway connectivity to
Anuradapura to make it a hub city
Develop Anuradapura sacred city and preserve
archeological sites
Promote paddy, maize, fruits, vegetables, inland
fisheries and food processing facilities
Rajarata University to become a resource center
67
Rajarata Navodaya- Selected outcomes
Rehabilitation of Poodoor
Anicut - Thamankaduwa
50 ft long Bridge in Divulwewa
Rehabilitation of
Alaadioodaya Canal
Pre school - Dimbulagala
68
Kandurata UdanayaNuwara Eliya, Matale & Kandy Districts
69
Kandurata Udanaya –
Interfacing with Line Agencies and Provincial Council to
integrate Kandurata Economy with following





Promote Kandy sacred city
Develop Nuwara Eliya , Kandy and Dambulla
as Tourism cities
Develop Botanical Garden network
Peradeniya University township
Conservation of Hydro electricity resources in
the province
70
Kandurata Udanaya – Selected outcomes
Tourist Attractions
Wewalawewa Elevated Irrigation
71
Pubudamu WellassaBadulla & Monaragala Districts
72
Pubudamu Wellassa Interfacing with Line Agencies and Provincial Council
to integrate Wellassa Economy with following




Diversion of Uma Oya
Uva Wellassa University township
Development of Tea, Rubber, Paddy and
Vegetable plantation
Connect the land locked province to South
and East
73
Pubudamu Wellassa – Selected outcomes
Eladaluwa- Mudunpita Road
Moretota- Katugaha Road
74
Batahira Ran ArunaColombo, Kalutara and Gampaha Districts
75
Batahira Ran Aruna –
Interfacing with Line Agencies and Provincial
council to integrate Western Economy with
following




Develop Floriculture Zones and Tropical fruit Zones
Promote Small holder Agriculture and develop
Coconut plantation and Fisheries industry
Introduce under-passes and by-passes to
remove city congestion and facelift
urban townships
Develop Dutch Canal and associated area as a
Recreation and Tourism Belt
76
Batahira Ran Aruna – contd..




Develop Emerging Economic activities associated
with Air
port, Express way, Outer Circular Highway,
Southern Expressway and Associated townships
(Kerawalapitiya, Peliyagoda, Kadawatha, Kaduwela and
Kottawa etc) and The Port City and Colombo
Develop ancillary facilities around Fish market and Vegetable
market in Peliyagoda
Transform Export Processing Zones in
Katunayake, Biyagama, Wathupitiwela, Malwatta and Horana
into new townships and ease the road congestion
Promote Knowledge Economic Centers
linking to National Universities located in the province
77
Batahira Ran Aruna -Selected outcomes
Construction of Low Level
Road- Kolonnawa
Construction of MOH buildingWeliweriya
78
Development of Recreation and
Leisure Facilities
Corporate strategy for Department of Zoological Garden
(approved by cabinet on 28.09.2010)

Establishment of a safari park in a 500 acre land at
Ridiyagama

Setting up of a new Zoological garden in Kegalle

Modernisation of Dehiwela Zoological Garden to provide
breeding centers , better waste disposal system and improve
internal access roads and staff quarters.

Encourage industries to supply local products for shopping,
restaurants and entertainment to popularise zoological
facilities among both local and foreign tourists

Upgrade and maintain sorrounding infrastructure
79
Zoological Gardens(Dehiwela & Pinnawela)
Visitors Arrival (No), Earnings (Rs Mn)
2,500,000
450
400
350
300
250
200
150
100
50
0
2,000,000
1,500,000
1,000,000
500,000
0
2006 2007 2008 2009 2010 2011
upto
July
Local visitors
Foreign visitors
2006 2007 2008 2009 2010 2011
upto
July
Earnings from local visitors
Earnings from foreign visitors
Department of National Zoological Gardens- New development
initiatives

Safari Park - Hambantota
Construction of Animal Hospital

Improvements of Dehiwela Zoo
Improving access roads including for differently abled visitors

Developments in Elephant Orphanage -Pinnawala
Construction of Feeding hut
81
Dehiwala zoo
Renovations to Butterfly park
Sheds in Elephant free living enclosure
Pinnawala
stores and supplies building
Internal Access Road
82
Development of Recreation and
Leisure Facilities
Corporate strategy for Botanical Gardens

Improvement of common facilities (toilets , reception center,
restaurants, shopping , access roads and staff quarters) of the
existing Botanical Gardens at Peradeniya, Gampaha, Hakgala,
Ganewatta etc

Development of new Botanical Gardens in Hambantota and
Avissawella

Promote horticulture zones , flower shops and household and
micro cultivation for exports

Create small urban Botanical Gardens/ forestries in selected
government lands to add environment value to emerging
cities
83
Botanical Gardens
Visitors Arrival (No), Earnings (Rs Mn)
2,000,000
150
1,500,000
100
1,000,000
50
500,000
0
0
2006
2007
Local visitors
2008
2009
2010
Foreign visitors
2011
upto
July
2006 2007 2008 2009 2010 2011
upto
July
Earnings from local visitors
Earnings from foreign visitors
84
New Botanic Gardens in Avissawella and Hambantota
Water Garden, Avissawella
Orchid collection, Hambantota
Cactus Collection, Hambantota
85
Great Lawn, Avissawella
Tourism Economy
Reforms –



Setting up a single authority for promotion and
regulation of tourism in place of prevailing multiplicity of
organisations
Tourism promotions to be collectively undertaken by
Tourism Development Authority, BOI, Tea Board, EDB,
Sri Lankan Air Line and Private sector
TDA promotional offices to be attached to Sri Lankan
missions abroad and linked to Sri Lankan Air Line
country offices.
86
Tourism Economy-Key Initiatives

Promotion and Development–
Development of language skills in Chinese, Japanese and Russian Etc
Vocational Skills development for tourism trade
One stop approval process
Simplified land alienation on leases and based on up front payments
Promotion of Home-stay tourism
Refurbish old heritage homes & walauwas to accommodate elite high
spending tourists
Promotion of lesser known local tourist destinations
Upgrading of common facilities in tourist stopovers (toilets, rest areas,
shopping)
Sponsorship of coffee table books , specialised events and
preparation of tourist s’ guides and hand books etc.
Attraction of Internationally renowned Hotel Chains
Integrate with diversified economic activities to increase backward integration
(harvesting, crafting, fishing, cultural and religious activities)
Promotion of museums, temples, churches , heritage sites.

Regulations –
Minimum rate for 5 star hotels
Strict enforcement of standards
87
Capacity creation
No of Additional Rooms to double the present capacity of 15,000
rooms
16000
14000
12000
10000
8000
6000
4000
2000
0
2010
2011
2012
2013
2014
88
2015
Several new projects are gradually
adding to promote Sri Lankan
Tourism products
Malu Malu Resort Passikuddah60 Room Luxury Boutique Hotel
July 2010
Foundation
Laying Ceremony
May 2011
Opening
Ceremony
Tourism Zones
Tourism Zones
Jaffna
Kuchcheweli
Sigiriya
Polonnaruwa
Kalpitiya
Anuradapura
Passikuddah
Hill Country
Negombo
Colombo
Arugambay
Ratnapura
Yala
Bentota
Galle
Hambantota
90
Developing Tourism Corridors
through private investments








Passikudah
Kalpitiya
Kuchchuveli
Negombo
Yala
Kandy- Dambulla- Nuwara Eliya
Anuradapura
Bentota - Hikkaduwa
91
New markets







India
China
Developed and Emerging Economies in Asia
will be the key targeted markets.
Japan
(Per capita income and upper income families
South Korea
in these Economies are on the rise)
Russia
Australia ( far east) – Colombo- Middle East
Europe linked markets- London,Paris, Frankfurt, Zurich and
linked to North American markets
 Networking and market penetration through Sri Lankan Air
Lines / Mihin Lanka fleet expansion to 20 air crafts by 2011
and 30 air crafts by 2013 and facilitate other international air
lines to promote Sri lanka as a destination.
 Direct flights to India, Japan, China, Russia, Europe,
Middle East, Philippines, Indonesia and Bangladesh
92
Market Focus-
Biased towards high spending Tourists










Sri Lankan TouristsIndian ChineseJapaneseRussian –
Korean Australian –
Middle EasternEuropean Transit –
5 Mn
300,000
150,000
50,000
100,000
50,000
100,000
100,000
200,000
500,000
93
Activity Focus
 Wild-life and environment– 100,000
 Sports -
200,000
 Culture -
300,000
 Beaches –
300,000
 Business -
50,000
 Knowledge activities 100,000
(conventions/seminars and conferences)
94
Tourists Arrivals
2000-2011 up to August
700000
600000
500000
400000
300000
200000
100000
0
95
Annual Room Occupancy Rate
(Graded)
Receipts from Tourists (Rs Mn)
600
500
300
96
2011 upto Aug
2010
2009
0
2008
0
2007
100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
20
2006
200
2005
48.4
2004
43.9
2003
47.8
400
2002
40
59.3
2001
60 52.3
70.1
2000
80
Investment strategyEmerging Economy with Wider Boundaries
 To raise investment to 33-35 percent of GDP by
2015 to accelerate and sustain economic growth in
excess of 8 percent
 The composition of total investments to be as
follows:
Past
Present Future
Public
3-4%
6%
6.5-7%
Domestic private
17-18.5% 19-20% 21-24%
FDI
0.50% 1-1.15% 2-4%
97
Gradual push on Investment
Government and Private Investment ( % of GDP )
30.0
25.0
26.2
21.1
21.6
20.0
15.0
10.0
5.0
0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Government Investment
Private Investment
98
Planned Investment strategy
Promotion of investments for
i.
Basic industries – Cement (USD 450 Mn), Tyre (USD 75Mn),
Steel (USD 75Mn) , Textiles (USD 100 Mn) ,
Pharmaceutical (USD 200 Mn) , Agriculture (USD 50Mn) ,
Dairy and milk food (USD 500 Mn) to replace imports
Total import of these items is USD 1500 Mn
ii. Tourism (USD 2500 Mn) , IT/BPO (USD 100 Mn) ,
Branded garments and Logistic hubs (USD 200 Mn ) and
Gems (USD 50 Mn)
Potential additional foreign exchange earning over next 3-5 years is
around USD 4,000 Mn
99
Planned Investment strategy
contd..
 Promotion of investments for
iii. Exports of value added Tea (USD 100 Mn), Rubber (USD 100 Mn),
Cinnamon and spices (USD 100 Mn) and Handlooms (USD 50 Mn)
Export earning potential is around USD 2,000 Mn and employment
potential is huge
iv. The development of emerging regions under the regional
development
initiatives (promote domestic investment)
v. Commercial infrastructure Port terminals (USD 1000 Mn),
Renewable energy and Power generation (USD 1000 Mn),
Waste disposal (USD 500 Mn),
Industrial zones / IT parks (USD 200 Mn) Etc
vi. Urban Property development (USD 500-750 Mn)
100
Incentives for Investment
Applicable concessions –






3 year tax holiday commencing from the date of commercial operation
for investments within
Rs 50 – 300 Mn
5-7 year tax holiday commencing from the date of commercial
operation for investments over USD 3 Mn
Up to 25 year tax holiday for strategic investments
Deferment of VAT and exemption of custom duty, PAL during project
implementation period to reduce up front cost on capital
BOI Law to provide Exchange control and Visa concessions for FDIs
Simplified Import and Export control system under Import control
Gazette of September 2011
101
Barriers to Investments
 Non compliance by line agencies to investment
decisions
 Time consuming approval process (from Cabinet to
pardesheeya sabhas and other involved agencies)
 Indecisive decision making process involved in business
disputes/frustrations at Customs, Tax Dept., Exchange
control, Import control
 No proper follow up by officials in institutions
(BOI,UDA, TDA )
 Absence of accepted pricing formula and guaranteed
procurement arrangement which create uncertainties
102
Strategic Development Projects

Under Implementation :
Shangri-La Hotel Lanka (Pvt) Ltd. – Colombo - Project - 283 Mn
10 acre Land - USD 125 Mn
Shangri-La Investment Lanka (Pvt) Ltd – Hambantota- USD 120 Mn
Petroleum Exploration- Cairn Lanka (Pvt) Ltd. – Mannar – USD 125 Mn
Expansion of Ceylon Steel Corporation (CHICO) – Athurugiriya- USD 70 Mn

Pipe Line Projects : Almost ready to kick-off
Mixed Development Project (CATIC/AVIC) – Colombo- USD 450 Mn
Colombo South Container Terminal – USD 500 Mn
2X250 MW Coal Power Plant – Trincomalee –USD 500 Mn
Magampura Port City Investment projects –USD 600Mn
(Sugar refinery, fertiliser and chemicals ,cement and vehicle assembly)
103
Moving to Emerging Regions
(Private Investments)
Company Name
Location
Investment
(USD Mn)
No of
Employees
Omega Line (Pvt) Ltd.
Vavuniya,
Rajandrakulum
20
990
Orit Trading Lanka (Pvt) Ltd.
Vavuniya,
Manik- Farm
6
1800
Timex Garment (Pvt) Ltd.
Mannar Industrial
Estate
2.3
500
Fergasm Grament Ind. (Pvt)
Ltd.
Mannar Industrial
Estate
2.3
500
Brandix Apparels Ltd.
Batticaloa, Punani
9
600
MAS Active (Pvt) Ltd.
Achchuveli
Industrial Estate
3
500
42.6
4,890
Total
104
Medium Term Investment PlanFDI
USD Mn
Increase in FDI
3500
3000
2500
2000
1500
1000
500
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
105
Outcome Expected - 2015




Emerging Middle Income Economy status with USD 5000 Economy
Self Reliant Household Economy
Empowered Villages & Poverty free Sri Lanka
Position the Country to enter the 3rd phase of Mahinda Chintana in
2016
Phase I – 2006 - 2010 USD 1000
Phase II – 2011- 2015 USD 2700
Phase III - 2016 - 2020 USD 5000
2400
5000
7500/ 10,000
106
Outcome expected -2015
Self Reliant Household Economy
Empowered Villages and
Poverty Free Sri Lanka
Emerging Middle Income Economy status
with USD 5000 Economy
Position the Country to enter the 3rd phase of Mahinda Chintana
107
Proposals to be considered
 Divineguma to take to the 3rd Phase for value added activities
 Rationalise wide range of Samurdhi allowances and promote
micro credit through Samurdhi Banking societies to empower
Divineguma and self reliant households
 Gamaneguma to target 20,000 small villages to fill gaps in road
access, drinking water, irrigation etc
 Strategise a marketing campaign for new Sri Lanka that
promotes Exports , Tourism and Investment
 Promote 20 Apparel / Handloom factories in emerging districts
 Pursue FDI through already established foreign investors
108
Reforms In the Ministry
Present

Samurdhi Authority of Sri Lanka

Department of Commissioner General of Samurdhi

Department of Up- Country Peasantry Rehabilitation

Southern Development Authority

Uda Rata Development Authority

Department of National Zoological Garden

Department of National Botanical Garden

Sri Lanka Tourism Promotion Bureau

Sri Lanka Tourism Development Authority

Sri Lanka Convention Bureau

Sri Lanka Institute of Tourism & Hotel Management

Board of Investment of Sri Lanka (BOI)- with full time DG
Proposed
Divineguma
integrated
rural
development
department
with three
divisional
offices in
south, central
and north
Sri Lanka
Tourism
Authority
(SLTA)
109
Thank You
110
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