Sri Lanka, Your Potential Business Partner Sri Lanka as a strategically important economic centre Sri Lanka as a Naval Aviation Commercial Energy Knowledge hub Positions as the world’s most treasured tourist destination Hubs Sri Lanka •Island Nation of 65,610 s.q. km •Population of 20.48 Million •Strategically connected to major shipping and air routes to the East and West •Peace and Political Stability •GDP Growth Rate of 7.3% (2013) •Per Capita GDP Income US$ 3,280 (2013) •Literacy rate 95.6% Preferential Market Access for products of Sri Lanka Origin Market access – Indo-Lanka FTA - 100% Duty free access to India for 4,232 products – Pakistan-Sri Lanka FTA - 100% Duty free access to Pakistan for 4,686 products – Regional Trading Arrangements such as SAFTA (South Asian Free Trade Area) and APTA (Asia Pacific Trade Agreement), including China and South Korea – Non -Reciprocal market access to EU and the USA, Japan, Canada, Russia etc, under GSP – FTA with China under negotiations. – WHY SRI LANKA? Natural Resources • • • • • • • • • Tea, Rubber, Coconut Spices Gems Mineral sands and rare earths such as Mica, Phosphate, Salt, Silica Sand, Feldspar, Graphite , Calcium Carbonates Fishing grounds Oil and Gas deposits Nature Tourism Fishing grounds Other Sri Lanka’s Total Exports Values Year Sri Lanka’s Sri Lanka’s Exports to Imports from Thailand Thailand Total Trade 2006 38 205 243 2007 47 231 278 2008 77 298 375 2009 63 271 334 2010 84 316 400 2011 2012 76 491 567 66 460 526 2013 57 428 485 2014 54 462 516 Value in Millions of US Dollars Source of data: Dept. of Commerce, Sri Lanka Garments Brands we supply INTERNATIONAL BRANDS SRI LANKAN BRANDS Rubber Products Quality natural rubber producer with 160 million kg. annually. 130,000 hectares under cultivation Produce Sheet rubber, Sole Crepe, Latex crepe, Technically Specified rubber & centrifuged latex. Accounts for 20% of solid tyre market Industrial & surgical gloves with gamma irradiation facilities Ceylon Tea Our Brands Spices “Pure Ceylon cinnamon – unique flavor and aroma” 85% of world market share Produce a range of spices , pepper cloves, nutmeg, mace & cardamom Supply high quality essential oils for cosmetics & pharmaceuticals Coconut Products •Single largest supplier of bristle coir fiber •Environmental friendly production Products: •Desiccated coconut - Bakery & Confectionary •Coconut milk powder, cream & oil •Coco fibre pith, coco pots & poles for Horticulture •Coir brushes and brooms •Coir mats & carpets for flooring & for winter season •Geo textiles to prevent soil erosion. Mineral Products • A rich variety of industrial minerals such as Graphite, Ilmenite, Rutile, Zircon, Quartz, Feldspar, Clay, Kaolin, Apatite, Silica sand, Garnet sand, Mica, Calcite and Dolomite. • The Pulmoddai beach sand deposit is the most important non ferrous mineral reserve in Sri Lanka. • Sri Lankan graphite popular for its high purity P orcelain & Ceram ics Tableware Wall & floor tiles Ornamentalware Strengths Highly skilled workforce State-of-the-art technology In-house R & D facilities Abundant supply of raw materials Ensure design confidentiality International quality Standards Boat Building Yachts, Leisure , Pleasure boats Passenger, Sports, Rescue, Coast guard and Petrol boats Fishing boats Boat building accessories Fishing gear, propellers, life jackets & safety equipments ICT/BPO Services Sub Sectors Banking, financial, insurance, mobile applications and HRM Offshore Accounting & Legal services Medical diagnostics & engineering services Architectural/Construction services, Quantity Surveying Other export services Ayurvedic herbal healthcare Printing services WHY SRI LANKA ? Globally Competitive industry Clean and Green technology Top CIMA student population 2nd highest pool of UK qualified Accountants Over 300 ICT/BPO/KPO Companies ICT/BPO Services MNCs Operating in Sri Lanka Global Brands we Serve Operating Environment Business Environment • Sri Lanka is considered as the most liberalized economy in south Asia (1978) (India 1990s) • • • • • • • 100% Foreign Ownership No restrictions on Repatriation of Earnings/ profits Never defaulted international debt obligations Safety of Foreign Investments Guaranteed by the Constitution Strong Intellectual Property law in line with WIPO and WTO regulations National Treatment is guaranteed Signatory to the Multilateral Investment Guarantee Agency (MIGA) of the World Bank • Commercial Law is based on the British Laws • Bilateral Investment Protection Agreements with 28 countries • Double Tax Avoidance Agreements with 38 countries including Saudi Arabia on limited basis WHY SRI LANKA? Labour Force • 49.8. % of the population - Men 67.8%, Women 33.4% • Reputed for its precision, quality and productivity • Skilled and semi skilled workers at competitive wage rates • Renowned for high caliber professional skills • World class reputation in the production of high end garments and lingerie markets WHY SRI LANKA? INFRASTRUCTURE - Colombo Port Colombo South port development (under construction) World Port Ranking • • • • • No. 1 in South Asia Total container throughput 4 Mn. TEUs Transshipment cargo 70% 33 major shipping lines 14 feeder services • • • • Capacity to be increased - 12 million TEUs 12 new berths Will be the deepest port in the region New port being constructed in South Eastern Sri Lanka WHY SRI LANKA? INFRASTRUCTURE - Power Main Power Sources Pipeline Projects • Hydro - 45% • Trincomalee Coal Fired Plant (500 MW) • LNG Power & LNG Terminal (600 MW) • Thermal - 55% •Total Capacity – 1780 mw New Constructions • Norochcholai Coal Fired Plant (300 MW - 2011, Additional 600 MW – 2013) • Upper Kothmale Hydro Power Plant (150 MW - 2012) WHY SRI LANKA? INFRASTRUCTURE - Telecommunications • Most advanced Telecommunication Industry in South Asia • 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 III SEA-ME-WE IV Telecommunication technologies (Connectivity Bandwidth - 1.32 terabits per second) SEA-ME-WE IV fiber cable network • • • • • GSM (Global System for Mobile communication) 3.75G and 4G services HSPA (High Speed Packet Access technology ) Video conferencing, video streaming, mobile TV, music streaming and high speed internet CDMA WHY SRI LANKA? Quality of Life • A cosmopolitan living environment • Abundant recreational facilities • Unparalleled natural beauty • Equable climate throughout the year www.investsrilanka.com Incentives for Investments • Granting of Tax Holidays from 4 -12 years depending on the value of the Investment • Min. Investment LKR 25 ml/ $ 0.25 ml • Corporate tax for Export Oriented Activities (90% export)/ Tourism/ Construction, Industry/ Petroleum Exploration • Duty Free Imports : Capital Goods and Raw materials for Export Oriented Activities, Capital Goods only (for all other categories) • Exemption from Exchange Control: For Companies that export goods (Minimum 90% of total output) and for companies receiving earnings in Foreign Currency for export services