Investment Opportunities in Sri Lanka
Agenda
1.
2.
3.
4.
5.
6.
Brief profile of Sri Lanka
Infrastructure facilities available for investments
Investment opportunities
Business environment
BOI and BOI incentives
Discussion
1. Brief profile
Key economic indicators - 2008
Total population
Literacy rate
20.2 Mn.
90.8%
Male
92.7%
Female
89.1%
Life expectancy
Male
Female
Per capita GDP (At Market Prices)
68
75.6
2,014 US$
Source : Central Bank of Sri Lanka, 2008
Brief profile contd…
Gross Domestic Product (GDP) growth rate
in Sri Lanka
2002-2007
8
7.4
7
6.0
6
6.8
5.8
5.4
1
4.0
1
3
2
1
0
2002
2003
2004
2005
2006
2007
Source : Central Bank of Sri Lanka
Brief profile contd…
FDI Trends (2001-2008)
US$ Mn.
1000
888
734
800
603
600
400
200
287
181
171
2002
2003
233
82
0
2001
2004
2005
2006
2007
2008
Source : Board of Investment of Sri Lanka
2. Infrastructure facilities
Colombo Airport
• Passenger movement
5 Mn /Per annum
• Cargo movement
250,000 tons / Per annum
• Highest number of flights to
India from any country
Infrastructure facilities contd…
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%
5 days transit time to Dubai
• Centrepoint on the East/West sea routes
• Gateway to the Indian subcontinent
Capacity to be increased - 11.7 million by 2012
Infrastructure facilities contd…
Hambantota port development
• Development cost - US$ 1 billion.
• The project includes:
•
•
•
•
•
A gas-fired power plant project
A ship repair unit
A container repair unit
An oil refinery
A bunkering terminal
• Nearly 150, 000 ships passing Sri
Lanka annually
• Sri Lanka’s strategic location in
the sea routes are important in
connecting East to the West.
Infrastructure facilities contd…
Telecommunications
•
•
•
•
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
(Connectivity Bandwidth - 1.32
terabits per second)
SEA-ME-WE IV
fiber cable network
Infrastructure facilities contd…
Power
1. Main power sources
- Hydro - 52%
- Thermal - 48%
3. Future requirements
• Total existing capacity- 2650 MW
• Additional capacity by 2015 - 2500 MW
2. Projects under construction
• Norochcholai Coal Power Project
• Upper Kothmale Hydro Power Project
4. Pipeline projects
• Trincomalee Coal Power Project
• LNG Power & LNG Terminal
• India Sri Lanka high-tension
Power Connection
Infrastructure facilities contd…
Industrial/Free Trade Zones
12 industrial zones
with all
infrastructure
facilities
administered by
the BOI
Infrastructure facilities contd…
Health Care up to International Standards
Apollo Hospital,
Colombo
Nawaloka Hospital,
Colombo
Infrastructure facilities contd…
Educational institutions of international standards
Infrastructure facilities contd…
Prestigious Hotels / Leisure Facilities
Hilton, Colombo
Golf Courses
Infrastructure facilities contd…
Modern Office Complexes
World Trade Center, Colombo
Infrastructure facilities contd…
Luxury Residential Apartments
Havelock City,
Colombo
Infrastructure facilities contd…
Finance and Banking
Colombo Stock Exchange
Standard Chartered, Colombo
3. Investment Opportunities
a)
b)
c)
d)
e)
f)
g)
Garments, Textile & Apparel
Software Industry
BPO/KPO
Gems & Jewellery
Tourism
Agriculture & Dairy Farming
Fisheries
3. Investment Opportunities contd…
Garments, Textile & Apparel
• Developed into a sophisticated industry from mere tailors to
total solutions specialists.
• Garments without guilt.
• Approximately 44% of the total exports.
• Pioneer in green factories.
Global brands/buyers:
•
•
•
•
Victoria’s Secret
Gap
Marks & Spencer
Triumph
3. Investment Opportunities contd…
Software Industry
•
A highly literate workforce with a solid
mathematical background.
•
Easily trainable & strong analytical skills
•
Low levels of attrition.
•
High linguistic adaptability
•
Value of IT industry exports
–
–
•
2008 - US $ 250 million
Target for 2012 - US $ 1 billion
Leading companies include Millennium
Technologies, Virtusa, IFS, hSenid
Orion City IT Park , Colombo
3. Investment Opportunities contd…
BPO/KPO
• World’s 2nd largest pool of UK-licensed Financial Accountants
• Connected to SEA-ME-WE-4
fiber optic network
Our Success stories
•
•
•
•
HSBC
WNS
OfficeTiger/ RR Donnelly
Amba Research
3. Investment Opportunities contd…
Gems & Jewellery
• Emerging precision gem cutting and finishing
center in the world.
• 75 out of 200 varieties of gem stones are found
in Sri Lanka.
• Sapphire capital of the world.
• Duty free facility on import of gems.
• Value of exports in 2008 - US $ 530 million.
Target for 2013 - US $ 1 billion.
• Main markets are USA, Switzerland, Thailand,
Hong Kong, Japan, France, Germany,
Singapore and UAE.
3. Investment Opportunities contd…
Tourism
• Focus on upmarket tourism
• Increasing regional tourist arrivals
• Access to diversified attractions (bio-diversity,
cultural sites, wild life reserves and beaches).
• Current room capacity- 14,700 rooms.
Target for 2015- 25, 000 rooms.
Opportunities for investors
• Tourism related infrastructure
• Theme parks
• Golf courses
3. Investment Opportunities contd…
Tourism
North
Jaffna
Kilinochchi
Mannar
Vauniya
Mullattivu
East
Trincomalee
Tourism Development - Northern and
Eastern provinces
• Trincomalee - Ocean City
• Arugam Bay- Resort for surfing
Baticaloa
Ampara
• Pasikudah - National Holiday Resort
• Jaffna - Beach Resort Apartments
• Kalpitiya - Beach Resort Island
3. Investment Opportunities contd…
Agriculture & dairy farming
• Diverse agro climatic zones
• Processing and value addition opportunities for export market
eg: Middle East and Japan
• Control agriculture, green house and drip irrigation technology.
• Large lands in Eastern Province.
• Opportunities in local dairy market
Imports - US $ 300 million.
• Zero tariff for agricultural products to India & Pakistan and European
Union.
Investment Opportunities contd…
Rubber based industries
• World’s largest manufacturer of solid rubber tyres.
• Renowned for high quality crepe rubber.
• Leading international glove supplier .
Our Success stories
•
•
•
•
Ansell - Australia
CEAT - India
Loadstar - Belgium
Trelleborg - Sweden
Investment Opportunities contd…
Fisheries
Maritime Zones of Sri Lanka
• Investment opportunities
- Deep Sea Fishing & Processing
- Aqua-culture
• Development of New Port/ Fishery
harbours.
• Export to Europe ( with GSP+) and
Japan & Singapore
4. Business environment
• Total Foreign Ownership.
• No restrictions on Repatriation of Earnings.
• Safety of Foreign Investments Guaranteed by
the Constitution.
• Commercial Law is based on the British Laws.
Business environment contd…
Investment Protection (over 20 Countries)
• Australia
• Japan
• Canada
• Korea
• China
• Malaysia
• France
• Pakistan
• Germany
• Singapore
• India
• Thailand
• Indonesia
• UK
• Iran
• USA
Business environment contd…
Double Taxation Relief (over 30 countries)
• Canada
• Korea
• China
• Malaysia
• France
• Pakistan
• Germany
• Saudi Arabia
• India
• Singapore
• Iran
• Thailand
• Japan
• UAE
• Jordan
• UK
• Kuwait
• USA
Business environment contd…
Special Tariff Preferences for Sri Lankan products
• Indo-Lanka FTA
- 4,232 products (zero duty)
• Pakistan-Sri Lanka FTA
- 4,686 products (zero duty)
• EU GSP +
- 7,200 products (zero duty)
5. Board of Investment of Sri Lanka & BOI incentives
• Established in 1978.
• Functions under the Ministry of
Enterprise Development and
Investment Promotion.
• Government authority to
promote and approve foreign
investments.
• First contact point for foreign
investors.
BOI incentives
3 to 15 Year Tax Holiday
•
•
•
•
•
•
Export oriented manufacturing & services.
•
Textile & Fabric Manufacture, Printing, Dying, Washing &
Finishing (deemed exports).
•
Development of Highways, Ports, Airports, Public Transport
and Water services.
Tourism & Leisure.
Agriculture & food processing.
IT, IT enabled services & BPO.
Education & Training.
Power Generation, Transmission and Distribution, Petroleum &
Petroleum Products.
BOI Incentives contd….
Duty Free Imports
• Export Oriented Manufacturing
• Export Oriented Services
• Infrastructure
• IT Enabled Services
• Agriculture
On Capital Goods
& Raw materials
Only on
Capital Goods
Exemption from Exchange Control
Applicable to companies that export goods and services and/or
receive earnings in foreign exchange
Major Investors by Country (2008)
FDI
(US$ Mn.)
Country
1. Malaysia
150
2. India
126
3. Netherland
117
4. UK
87
5. Luxembourg
82
Total - US $ 888 million
Some of our global investors
US companies in Sri Lanka
USA Companies
Total FDI
-
76
Over US$ 200 Mn.
Sri Lanka – Gateway to South Asia
Thank You
www.investsrilanka.com