Volume 04 - January, 2017
THE IMPORTANCE OF TECHNOLOGY AND
BOI
SRI LANKA The Investor Published by Media Department - Board of Investment of Sri Lanka
Sri Lanka-China
Industrial Zone is
catalyst to investment
...P-05
Malaysia to explore
new investment
opportunities in
Sri Lanka – Malaysian PM
Sri Lanka and Malaysia signed five agreements
Malaysia is ready to explore new
investment opportunities in Sri
Lanka, says the Prime Minister of
Malaysia, Abdul Razak.
President Maithripala Sirisena who
is currently on an official tour to
Malaysia, held bilateral discussions
with the Malaysian Prime Minister
Abdul Razak at the Prime Minister’s
Office.
Asia will bail out the world, if it is allowed to frame the rules
New Delhi: Sri Lankan Prime
Minister Ranil Wickremesinghe
today marked out India and
China as the only countries that
can drive economic growth
across the globe, saying
manufacturing companies have
no other place to go.
Critical of the western nations
over selective treatment on
framing economic policies, he
said: "Asia will bail out the world
EU-SRI LANKA INVESTOR DIALOGUE
TO BOOST TRADE AND INVESTMENT
FROM EUROPE ...P-08-09
SL will integrate trade in Asian region: PM
Sri Lanka's Strategy for
Investment :
The United Kingdom ...P-20
A colourful welcome
ceremony was
organized at the
premises of the Prime
Minister’s Office to welcome the
President and he was given a Guard
of Honour by the Armed Forces.
After a warm welcome by the
Malaysian Prime Minister, the
President was taken to the Prime
(from the economic crisis), if it is
allowed to frame the rules
(policies)."
"WEF in Delhi this year says the
world is expecting India to
translate potential into action...
we are at the threshold of
another historic moment. If the
pace of reforms fails to pick up,
companies may look elsewhere.
Where elsewhere? It has to be
India or China. That's the hard
...P-03
Board of Investment of Sri Lanka
Board of Investment of Sri Lanka
KNOWHOW IN ECONOMIC DEVELOPMENT
- GUEST LECTURE BY PROF. RICARDO HAUSMANN
HARVARD KENNEDY SCHOOL OF GOVERNMENT
...P-16-17
Apparel Exporters’ Prime Minister opens
Association upbeat $50 m gloves export
factory in Koggala...P-04
on GSP+, more FTAs...P-21
Chinese President Xi Jingping and Prime Minister Ranil
Wickremesinghe greet each other warmly on the sidelines
of the World Economic Forum in Davos, Switzerland
yesterday – Pic by Pradeep Pathirana
Minister’s Office on the red carpet.
Both sides of that route were also
decorated with the national flags of
both countries conveying the
PM and President Xi
longstanding friendship between
Sri Lanka and Malaysia. talk investment in
Page 04 Davos
- Discuss Chinese-funded investment
projects in SL and future plans
- Meets with AIIB President;
invites Nobel Laureate Prof. Joseph Stigilitz
Chinese President Xi Jingping yesterday met with
Prime Minister Ranil Wickremesinghe on the
sidelines of the World Economic Forum in Davos,
Switzerland where discussions on the Hambantota
port, investment zone and the Port City projects
unfolded.
Page 04
truth. There is no other place to
go today," Wickremesinghe said
here.
Speaking at the India Economic
Forum, organised jointly by WEF
and CII, the Sri Lankan Prime
Minister singled out the West
for favouritism.
Page 07
Abans promotes Colombo City Centre:
Luxury living and lifestyle in heart
of Colombo ...P-19
LSEG Facility consolidates investor
confidence for SL ...P-03
Volume 04 - January, 2017
ON STRATEGY, GLOBAL VISION AND
UNDERSTANDING OF FUNDAMENTALS
When he wrote “The Republic”, possibly one of
the earliest works relating to political science,
Plato used an allegory to describe a rudderless
society which was doomed to self-destruction.
This was a ship manned by a dysfunctional
crew, with the captain unable to see and hear
clearly and a rebellious and quarrelsome crew
drawn to heavy drinking and endless fights.
Plato called this allegory “The Ship of Fools”
and warned that the failure to achieve a long
term plan for order would lead society to self-
destruction.
The subject of the doomed ship was popular in
western art and was covered by painters such
as Sebastian Brand and Hieronimus Bosch.
Those paintings are a stark reminder of the
danger of not developing a comprehensive
strategic plan.
Fortunately this situation does not exist in the
area of investment but the need to think ahead
remains a paramount consideration. The
problem of planning is that it should have a
guiding vision, a powerful beacon that could
direct the implementation of the plan and
determine any future course of action.
Investment isn't in fact something new. It had
existed since the earliest of times. It has also
led to many societal changes as an article
published by this writer will confirm. A
paramount need is to understand that a
country such as Sri Lanka does not exist in
isolation but as a cog of a larger system of trade
and investment that encompasses the whole
region.
Hence arises the necessity to look at the
fundamental question which is to determine
whether we have really understood our region,
namely Asia. We also need to appreciate that
Sri Lanka is located in Asia, the continent of the
21st Century, that has now emerged as the
engine of global economic growth.
An Ivory chest exhibited at a museum in
Singapore made in Sri Lanka for the
Portuguese king provides ample proof that the
people of this country have always being able
to create and manufacture goods of a high
Editorial
quality, capable of satisfying the most
discerning of customers in markets worldwide.
Currently the total workforce amounts to half
So we therefore need to look at the fact that
of Sri Lanka's population, with men making up
today we have the capacity of emulating the
for slightly more than half of that. However,
quality of the past and can do the same if we
women are often employed in some of the key
really we put our minds to that end. Hence a
export industries of the countries such as
strategic plan needs to be further developed
apparel, electronics, Tea, Rubber and
and enhanced if we are not to run the risk of
cinnamon. The importance of working women
boarding Plato's doomed vessel.
to the economy and the challenges they face
are captured in an article in this magazine.
In developing our vision we also need to look at
fundamentals. Hence this magazine which
In addition women who work overseas remit
examined in its last issue the importance of
considerable sums of foreign exchange, and
food security, has ventured into the subject of
therefore, contribute generously to the
water as a strategic resource. In fact water
country's economy. It is therefore of primary
which is largely taken for granted in Sri Lanka,
importance to the country in long term to look
could possibly be the country's most valuable
at the issues faced by working women. It is
resource, if its importance and strategic value
imperative to meet the highest international
are really understood.
standards and also to ensure that the country
has the right type of human resources sought
In addition to natural resources such as water a by leading investors.
key component of the investment equation are
undoubtedly human resources.
These points are essential and a clear
understanding of them and other
Investors who decide to set up projects in Sri fundamentals could help us shape and create
Lanka invariably enquire on the availability of in the long term a solid base for investment in
suitable human resources to ascertain whether Sri Lanka.
production can take place in the country.
Contact Details
Dilip S. Samarasinghe, Director (Media & Publicity Department),
Board of Investment of Sri Lanka, Level 8, West Tower, World Trade Centre,
Colombo 01, Sri Lanka.
Tel: +94 11 2399086, 2427048, Fax: +94 11 2423723,
Email: dilips@boi.lk
Editorial Assistant - Priyalal Sirisena
Meet the Chairman
Investors may meet the Chairman, BOI every Monday, from 8.00
AM to 6.00 PM, on appointment basis. Those who wish to meet the
Chairman on their investment related issues may first contact the
office of the Chairman and inform the matter, for an appointment.
Tel: +94 11 2427001, E-mail: upulj@boi.lk
w w w. i nv e s t s r i l a n ka . c o m
Volume 04 - January, 2017
Sri Lanka-Malaysia
ties built to boost trade and investment
President Maithripala Sirisena headed a business
meeting, participated by the businessmen and
investors of Sri Lanka and Malaysia. The meeting
was held recently in Kuala lumpur, with the
objective of enhancing the trade and investment
opportunities between the two countries.
This meeting was organized by the investment
boards, export development boards and the
offices of the High Commissioners of the two
countries. Large number of investors and
businessmen of Sri Lanka and Malaysia
participated in this meeting.
During this discussion, the attention was paid on
expanding of new trade opportunities.
w w w. i nv e s t s r i l a n ka . c o m
Board of Investment of Sri Lanka
The President, recalling that the coming three
years has been named as development years of Sri
Lanka, requested the Malaysian investors to invest
in Sri Lanka. He stated that the government is
ready to provide all facilities for the investors on
this regard.
01
 Volume 04 - January, 2017
Sri Lanka is ready for Trade and
Economic Co-operation – President
‘Sri Lanka has increased potential to trade with
the world and work for economic development’
said the President today (13), during the bilateral
talks with the President of the Republic of
Tajikistan, EmomaliRahmon, who was on a state
visit to Sri Lanka. President Maithripala Sirisena
r e c e i v e d h i s Ta j i k i s t a n i c o u n t e r p a r t ,
EmomaliRahmon at the Presidential Secretariat,
where a guard of honour was followed by
bilateral discussions.
President Sirisena welcomed the President of the
Republic of Tajikistan, EmomaliRahmon and the
official delegation and emphasised the need to
increased co-oporation in trade, regional security
and drug trafficking. President Sirisena poited out
the although both Sri Lanka and Tajikistan have
shared interests and many commonalities, trade
between the two countries have not grown
satisfactorily. As such, he invited Tajikistani
entrepreneurs and public sector to explore the
potential to investment in Sri Lanka. President
welcomed the signing of four bilateral
agreements and said he looks forward to more
corporation between the two countries, specially
Work begins on US$ 166 Mn Commercial Development
at Havelock City
Overseas Reality founder S.P. Tao
02
in national security, drugs control, tourism, hydro
power and trade.
President EmomaliRahmon highlighted the need
to explore more possibilities in technology
exchange in youth development, tourism, gem
industry, and apparel industry. Tajikistan is keen
to learn from Sri Lanka in those areas, he
mentioned. President EmomaliRahmon
reciprocated and invited President Maithripala
Sirisena to a state visit of Tajikistan in the future.
Prime Minister RanilWicremesinghe elaborated
that cultural and youth exchange programmes
can be arranged, while exchange of technology
and know-how in many areas are possible, as Sri
Lanka works towards becoming an economic hub
in the Indian Ocean.
After the bilateral talks, four bilateral agreements
were entered into in the presence of the two
Presidents:
Memorandum of Understanding on Political
Consultations between Ministry of Foreign
Havelock City, the premier mixed-use
development project in Sri Lanka,
ceremoniously conducted the
groundbreaking and inauguration ceremony
of its Commercial Development under the
auspices of Overseas Realty Ceylon Plc
Chairman S.P. Tao.
Minister of Foreign Affairs Mangala
Samaraweera graced the event as Chief
Guest along with many other distinguished
dignitaries. The Havelock City Commercial
Development, a $ 166 Mn BOI-approved
project, comprises a 46-storeyed 600,000 sq.
ft. office tower and a 200,000 sq. ft.
shopping mall built to international
standards which will be a landmark in the
vicinity and transform the skyline of
Colombo. Havelock City, the brainchild of
Tao, is developed by Mireka Capital Land.
w w w. i nv e s t s r i l a n ka . c o m
Board of Investment of Sri Lanka
Affairs of Sri Lanka and the Ministry of Foreign
Affairs of Tajikistan – singed by Hon. Harsha de
Silva, acting Foreign Minister of Sri Lanka and
AslovSirodjin, Minister of Foreign Affairs of the
Republic of Tajikistan.
Agreement between government of Sri Lanka
and the Government of Tajikistan on Corporation
in the field of Tourism. – signed by Hon. John
Amaratunga, Minister of Tourism Development
and Christian Religious Affairs of Sri Lanka and
Hon. AbdullozodaAhtam, Chairman of the
Committee for Youth, Sport and Tourism of the
Republic of Tajikistan.
Agreement between government of Sri Lanka
and the Government of Tajikistan on Corporation
in the field of Physical training and Sports – signed
by Hon. DayasiriJayasekera, Minister of Sports
and Hon. AbdullozodaAhtam, Chairman of the
Committee for Youth, Sport and Tourism of the
Republic of Tajikistan.
Aide Mémoire on the draft Agreement between
the Ministry of Development Strategies and
International Trade of Sri Lanka and the Ministry
of Economic Affairs of Tajikistan on Mutual
C o r p o rat i o n – s i g n e d b y H o n . M a l i k
Samarawickrama, Minister of Development
Strategies and International Trade of Sri Lanka
and Hon. HikmatullozodaNematullo, Minister of
Economic Affairs of Tajikistan
After the bilateral agreements were signed,
Tajikistan President EmomaliRahmon signed the
Guest book at the Presidential Secretariat to
mark his state visit.
From the Sri Lankan side, Hon. Prime Minister,
RanilWicremasinghe, Hon. Ministers John
A m a rat u n ga , M a l i ka S a m a raw i c k ra m a ,
DayasiriJayasekera, Acting Foreign Minister
Harsha de Silva, President’s Secretary P.B.
Abeykoon and Foreign Secretary
EsalaWeerakoon also took part in the bilateral
discussions.
Volume 04 - January, 2017
LSEG Facility consolidates investor confidence in SL
Shirajiv Siriamne, Daily News
The investment in Sri Lanka by
London Stock Exchange Group
(LSEG) technology facility is a clear
exa m p l e o f t h e i nve st m e n t
confidence foreign countries have
on Sri Lanka, Prime Minister Ranil
Wickremesinghe said.
Speaking at the opening of the LSEG
Technology Facility at the TRACE
Expert City he said that the unity
government formed by two rival
political parties is not something
very common in the world but it’s a
success story in Sri Lanka. He also
said that LSEG technology facility is a
c l e a r exa m p l e o f i nv e s t e o r
confidence for the government.
The premier also said that in
Sri Lanka is slated to play a significant
role in integrating trade in the Asian
region through a number of trade ties
which are to be signed, Prime
Minister Ranil Wickremesinghe said
yesterday.
He made this remark at a media
briefing held in line with the World
Economic Forum in Davos.
“Sri Lanka will tie up with nations
such as India, Bangladesh and
Vietnam, and thereby bring the
Indian Ocean states together and
then go in for trade ties with Japan
and whole of ASEAN and thus play a
role in integrating trade in Asia,” he
said.
addition the new lease deal for the
Hambantota Harbour with a Chinese
counterpart too will be inked in
January and the Trincomalee Port
city development with the
a s s i sta n c e o f J a p a n e s e a n d
Singapore will commence early next
year.
He also said that the proposed
International Financial City in the
Port City will also be an iconic
investment and it would also fill a
major void for the region. “Sri Lanka
has been practicing Roman Dutch
Law and also English Commercial
Law even before the USA and
Canada. “We will have new
legislation drawn up to support
SL will integrate trade
in Asian region: PM
Mr. Wickremesinghe elaborating on
the trade agreements which are
being lined up said Sri Lanka will go in
for separate trade arrangements
with five Southern states in India,
including Tamil Nadu. “Sri Lanka will
also go in for a trade pact with
Bangladesh, Vietnam and other
Indian Ocean states,” he said, In
addition he said Sri Lanka would be
looking at going in for a trade
agreement with ASEAN rather than
separate trade pacts with its member
states. “We will also have trade ties
with Japan,” he said.
He said the government would come
up with a tax incentive plan in March
this year.
We h o p e to co m p l ete t h e
negotiations with India, China and
Singapore by June this year,” said
Minister of Development Policies and
w w w. i nv e s t s r i l a n ka . c o m
companies setting up office there.”
“The Megalopolis development too
will bring in major foreign investors
to Sri Lanka and help to usher
“ London Stock Exchange Group has
extensive experience of working in
Sri Lanka through its global trading and
technology business, MilllenniumIT, based
in Colombo and Malabe.
economic property to the country.”
LSEG will indirectly offer
employment to over 1,200. These
employees will be tasked with
providing technical support services
for the Group’s global network.
London Stock Exchange Group has
extensive experience of working in
Sri Lanka through its global trading
and technology business,
MilllenniumIT, based in Colombo
and Malabe.
LSEG Chairman Donald Brydon said
that he was delighted to join the
Prime Minister for the opening of
our new technology facility, which
will provide the best and brightest
I n t e r n a t i o n a l Tr a d e M a l i k
Samarawickrama at the briefing.
“We expect the existing investors to
expand their investments and expect
new investors as well,” he added. He
said the government also expected
the Sri Lankan Diaspora to invest.
Mr. Samarawickrama describing the
progress made in infrastructure
facilities development, said The
Southern Highway extension up to
Hambantota and the Central
Board of Investment of Sri Lanka
technology talent in the country
with the opportunity to join a truly
global markets infrastructure
business.
”
“Given our long history and very
successful experience of working in
Sri Lanka, it is the natural destination
for LSEG’s new business services
technology division.
“We would like to thank the
government of Sri Lanka for their
support in this venture and look
forward to further developing a
world leading technology hub in the
country”.
Headquartered in the United
Kingdom, with significant
operations in North America, Italy,
France and Sri Lanka, the Group
employs approximately 3,500
persons.
Expressway would be commissioned
within the next two and a half years.
Minister of Finance Ravi
Karunanayake said Sri Lanka cannot
depend on a 23 million population
but should venture into the foreign
markets. “The perilous economy
which we inherited from the previous
regime has been brought somewhat
under control,” he said.
Minister of Digital Infrastructure
Development Harin Fernando said
the government would be stepping
into an endeavour to introduce an
overall digital payment platform this
year, while focusing on digital
technology education and
developing other digital
infrastructural facilities.
03
 Volume 04 - January, 2017 Board of Investment of Sri Lanka

Prime Minister opens $50 m Mövenpick Hotels

gloves export factory in Koggala
and Resorts
arrives in Colombo
Mövenpick Hotels &
Resorts President and CEO
Olivier Chavy is in Sri Lanka
to attend the inauguration
ceremony of Mövenpick
Hotel Colombo, which
marks the entrance of the
international hotel
company in the country.

The hotel will be officially

inaugurated today by
Pres id ent M a it h rip a la
ATG Hand Care Managing Director Fasal Ahabdeen shows a glove manufactured at the new Sirisena. It will be the city’s
plant of the Company at the Koggala Free Trade Zone to Prime Minister Ranil Wickremesinghe first new international five-
following its inauguration by the latter
star property in 25 years – a
Prime Minister Ranil Wickremesinghe Hand Care is a joint venture of ATG Ltd milestone that reflects the
yesterday opened a state-of-the-art and British investor John Ward Ceylon. country’s new-found energy and optimism.
factory producing gloves for export at Incidentally, Wickremesinghe opened
the Koggala Free Trade Zone. the Koggala Free Trade Zone in June Mövenpick Hotel Colombo introduces a whole new level of
1991 as the then Minister of Industrial vertical experiences in the heart of the city, offering a variety of
The factory, ATG Hand Care Ltd., is a $50 Development. This factory is the last
project of the Zone. culinary, wellness, entertainment and modern facilities from the
million investment that provides 7,000
jobs directly and 10,000 indirectly. ATG ground floor to the rooftop.
Daily FT

Malaysia to explore... ...from Front Page

Later, both the leaders held bilateral
discussions. Five agreements were
signed between the two leaders,
covering the areas such as foreign
employment, youth development,
tourism, culture and agriculture.
Expressing his views the President said
that his prime expectations are to
build reconciliation in the country and
to create a stable and economically
developed Sri Lanka.
He further said that the Government is
committed to strengthen the
reconciliation process in the country
and to create a stable economic
development the Government is
taking the assistance of friendly
countries in the world.
President Sirisena said that the new
agreements signed today will pave the
way to create new relations between
the two countries in the fields of
t o u r i s m , e d u c a t i o n , fo r e i g n
employment and agriculture. The
P re s i d e nt a l s o s u g ge ste d t h e
Malaysian Prime Minister to introduce
a new scheme to expand the
educational opportunities to Sri
Lankan students to study in Malaysia.
The President recalled his previous
visit to Malaysia 9 years ago as the
Minister of Agriculture and said that
during that tour the progress made by
Malaysia in the field of Agriculture
seen through his own eyes and further
said the Government expects the
technical assistance of Malaysia to
develop the Sri Lankan agricultural
industry.
The Malaysian Prime Minister stated
that the program for coexistence and
reconciliation in Sri Lanka has drawn
the attention of the entire world. “It is
the objective of Malaysia to enhance
the investment and trade
opportunities in every sector in Sri
Lanka”, he said. He also stated that
Malaysia is always ready to assist for
the investment of the education sector
in Sri Lanka.
The Prime Minister pointed out that
Malaysia has more opportunities for
technical training. He also said
Malaysia is ready to help Sri Lanka on
that regard.
The two leaders also discussed about
enhancing of tourism between the two
countries.
The Malaysian Prime Minister thanked
President Sirisena for visiting Malaysia
by accepting his invitation.
President Sirisena, mentioning that
this is a historic occasion when
Malaysia made an official invitation to
a Sri Lankan leader after 19 years,
thanked the government of Malaysia
for its invitation.
The President further stated that Sri
Lanka will celebrate the 60th
anniversary of the diplomatic relations
between Sri Lanka and Malaysia. He
also invited the Malaysian Prime
Minister to visit Sri Lanka.
Minister of Foreign Affairs Mangala
Samaraweera, Deputy Minister of
Foreign Employment Manusha
Nanayakkara, Deputy Minister of
Cultural affairs Palitha Thevarapperua
and the former Mayor of Colombo A. J.
M. Muzammil also participated in this
occasion.

PM and President Xi talk... ...from Front Page

also recapped investment pledged by
his country as part of the ‘One Road’
policy of the Government.
Wickremesinghe also met with the
head of Asia Investment and
Infrastructure Bank (AIIB), Jin Liqun,
where he had assured funding
assistance to Sri Lanka. The Prime
Minister also invited Nobel Laureate
Prof. Joseph Stigilitz to undertake an
observation tour of Sri Lanka and offer
his advice to the Government. He was
reported to have discussed in detail
future development expectations and
the plans of the Government with
Wickremesinghe.
Later during his address, Xi offered a
vigorous defence of globalisation and
free trade in a speech at the World
Economic Forum, which underscored
Beijing’s desire to play a greater global
role as the United States turns inward.
Likening protectionism to “locking
oneself in a dark room” to protect
from danger, but at the same time
depriving the room of “light and air”,
he cautioned other countries against
pursuing their own interests at the
expense of others, Reuters reported.
“No one will emerge as a winner in a
trade war,” Xi told the forum in the
Swiss Alps.
He said economic globalisation had
become a “Pandora’s Box” for many,
but that it was not the cause of many
global problems. He added that
international financial crises were
caused by the excessive pursuit of
profits, not globalisation.
Xi’s appearance, a first for a Chinese
leader at the annual meeting of
political leaders, CEOs and bankers in
Davos, came as doubts emerge about
whether the United States will remain
a force for multilateral cooperation on
issues like trade and climate change.
Over 2,500 leaders from business,
government, international
organisations, academia, media and
the arts will participate in the meeting
in Davos, Switzerland from 15-20
January. The theme of the meeting,
Responsive Leadership, calls on global
leaders to renew the systems that
h ave s u p p o rted intern atio n al
cooperation in the past by adapting
them for today’s complex, multipolar
world in ways that foster genuinely
inclusive growth.

04
w w w. i nv e s t s r i l a n ka . c o m
Volume 04 - January, 2017
Sri Lanka-China Industrial Zone
is catalyst to investment
Already 50 Chinese financiers have
come forward to invest in the Sri
Lanka-China Logistics and Industrial
Zone, State Minister of International
Trade Sujeewa Senasinghe said.
He was speaking to the media at the
Department of Government
Information yesterday.
State Minister Senasinghe said that
Chinese Ambassador to Sri Lanka,Yi
Xianliang has confirmed that 50
investors have already given the green
light to invest in the Mirijjawila,
Hambantota Industrial Zone.
Benefits of International Trade
Prof Robert Z.Lawrence of the Kennedy School of Government, Harvard University, delivered a lecture to BOI staff as well as senior officials from other
important state agencies, at the Board's Auditorium. In the lecture titled "Why trade?" the eminent academic examined in detail the rationale as well as the
impediments to global trade. His lecture focused on the fact that international trade is a factor that generates greater wealth in a country and transforms
positively the living standards of populations. Prof. Lawrence was welcomed by Hon.Sujeewa Senasinghe, State Minister for International Trade and Mr
Duminda Ariyasinghe Director General of the BOI.
Dilip S Samarasinghe
Director (Media & Publicity)
“The confirmed investors are only
from China. Fifty is a very small
number of investors to China. Our
target is to receive 2,000 foreign
investments for this industrial zone”
Senasinghe said.
Pointing out the importance of the
strategic location of Sri Lanka, He said
that Chinese President Xi Jinping has
shown a special interest in Sri Lanka as
a capital in the new Silk Road.
“The government is expecting 5
billion USD basic foreign
investments to the Hambantota
Industrial Zone within the
next 3-5 years, State
Minister Senasinghe
further said.
M i n i s t e r
Senasinghe also
refuted the
allegations
that a million
C h i n e s e
workers will be working in the
Hambantota Industrial Zone.
“It is a false allegation, State Minister
Senasinghe said. All workers in the
factories will be Sri Lankans,”he
confirmed.
“Why should someone think that we
would launch projects for the
prosperity of the Chinese is beyond
us,”the State Minister said.
“The monthly salary of an average
Chinese worker is 800 dollars. In Sri
Lanka, it is 200 dollars. Therefore,it is
h i g h l y u n l i ke l y t h a t C h i n e s e
Harvard Professor lectures on
w w w. i nv e s t s r i l a n ka . c o m
employees would be interested in
working here,” he said.
“There is a legal framework in the
country, which does not allow any and
every foreigner to come and work
freely in this country.The Chamber of
Commerce only gives a few liecenses
for foreign employees, who are mainly
experts on certain subjects, to come
and work in Sri Lanka,”Senasinghe
pointed out.
“ The success of the Hambantota
Industrial Zone will create not
just one million jobs but more
”
than five million.
He further pointed out that the basic
salary for workers in the zone will be
around Rs.40,000.
“If the employees are skilled and
properly trained, they may even get an
i n c o m e a ro u n d R s . 8 0 , 0 0 0 t o
Rs.90,000. The government is focused
on establishing training colleges and
institutes to create a suitable
workforce as the employers would
demand,” Senasinghe said.
“The success of the Hambantota
Industrial Zone will create not just one
million jobs but more than five
million,” Senasinghe further said.
He pointed out that the Sri Lankan
e c o n o my n e e d s t o fo c u s o n
Board of Investment of Sri Lanka
production and industries without
solely focusing on services sector.
“Without developing and promoting
industries, our economy will go
nowhere other than to an economic
crisis,”he pointed out.
“The free trade zones have created 1.3
million jobs in the country. How many
said no to these free trade zones?”
Senasinghe questioned.
“If we are to successfully
implement this project,
we will be able to
g e n e ra t e j o b
opportunities about 35
times larger than the
free trade zones
did,”Senasinghe further
said.
Senasinghe further
pointed out the government is
currently paying a maintanace fee of
Rs.1,000 million for the Hambantota
Port.
“The interest for the debts taken for
the same is Rs.15 billion,” he further
said.
“Neither Prime Minister Ranil
Wickremesinghe nor President
Maithripala Sirisena are interested in
the commissions they can get or deals
they can enter into, when launching
development projects.
Senasinghe also denied the allegation
that the claiming of lands for the
industrial zone would destroy temples
or archeological sites.
05
 Volume 04 - January, 2017
BOI scheme to engage job
Job Fairoutstations shows
seekers
great success
in Kurunegala District
SRI LANKA EYES BIGGER ROLE FOR PRIVATE SECTOR
Board of Investment signs Memorandum of Understanding with Oxford Business Group for new report
Colombo, December 2016: Sri Lanka's evolving
trade and investment laws and their impact on FDI
levels will be analysed in a report on the country by
the global publishing firm Oxford Business Group
(OBG).
The Report: Sri Lanka 2017 will shine a spotlight on
the Colombo Port City and Megapolis initiatives,
which, together with other big-ticket projects, are
expected to generate significant foreign interest
and help make new growth more inclusive.
OBG's publication will also analyse the
government's plans to boost private-sector
participation across some of the country's state-
owned enterprises, with preparations already
under way at key entities, such as Sri Lanka Airlines.
The challenges that Sri Lanka faces to reducing its
06
balance sheet and bringing the private
sector on board will also be analysed.
The Board of Investment (BoI) has signed
a memorandum of understanding (MOU)
with OBG for the publishing firm's
forthcoming report on Sri Lanka. Under
the MOU, the BOI will team up with OBG
to compile and produce The Report: Sri
Lanka 2017.
Commenting on the MOU, the BOI's
Chairman, Upul Jayasuriya, said, “I am
thrilled to see our strategic partnership
with OBG continue, and look forward to
seeing it grow in line with Sri Lanka's
long-term development.”
OBG's Countr y Director Andrea
Tsiachtsiri said she looked forward to
working with the BoI's representatives on The
Report: Sri Lanka 2017, as the team prepares to
plot the country's growth story and chart its bid to
broaden the economy.
“Sri Lanka is in the midst of change, with a national
drive to improve investor sentiment gaining pace
against a backdrop of reforms,” she said. “The
Board of Investment is a key player in Sri Lanka's
efforts to facilitate trade and attract higher levels of
FDI. I'm delighted that our report will benefit from
its insight and input.”
The Report: Sri Lanka 2017 will be a vital guide to
the many facets of the country, including its
macroeconomics, infrastructure, banking and
other sectoral developments. The publication will
also contain contributions from leading
w w w. i nv e s t s r i l a n ka . c o m
Board of Investment of Sri Lanka
representatives, including the President of Sri
Lanka Maithripala Sirisena and UN Secretary
General Ban Ki-moon. It will be available in print
and online.
About Oxford Business Group
Oxford Business Group (OBG) is a global publishing,
research and consultancy firm, which publishes
economic intelligence on the markets of the Asia,
Middle East, Africa and Latin America and the
Caribbean. Through its range of print and online
products, OBG offers comprehensive and accurate
analysis of macroeconomic and sectoral
developments, including banking, capital markets,
insurance, energy, transport, industry and
telecoms.
The critically acclaimed economic and business
reports have become the leading source of
business intelligence on developing countries in
the regions they cover. OBG's online economic
briefings provide up-to-date in-depth analysis on
the issues that matter for tens of thousands of
subscribers worldwide. OBG's consultancy arm
offers tailor-made market intelligence and advice
to firms currently operating in these markets and
those looking to enter them.
For more information please contact:
Marc-André de Blois, Director of Communications
E-mail: mdeblois@oxfordbusinessgroup.com
Dubai Media City, Aurora Tower Floor 14 Office
PO Box 502 659 Dubai UAE
T +971 4 426 4642
F +971 4 426 4641131 Great Titchfield St. London
W1W 5BB United Kingdom
T +44 20 7403 7213
F +44 17 3026 0274
 Volume 04 - January, 2017 Board of Investment of Sri Lanka

The Board of Investment of Sri Lanka in

collaboration with the Ministry of
Strategic Development and International
Trade , District Secretary office,
Kurunegala and the Export Development
Board organized a job fair at Sir John
Kotalawela College , Dambulla Road,
Kurunegala. This Job fair has been
o r ga n i ze d i n p a ra l l e l w i t h t h e
Government's programme on “Poverty
Alleviation year - 2017”

The Job fair created an ideal opportunity

for an unemployed youth in Galgamuwa,
Yapahuwa, Nikaweratiya, Hiriyala,
BOI welcomed a visiting delegation from Guangdong Province, China
wariyapola, Bingiriya, panduwasnuwara,
Kurunegala, Mawathagama,
Dodamgaslanda, Polgahawela,
Kuliyapitiya, Katugampala and
Dambadeniya areas, to find suitable
DELEGATION FROM GUANGDONG PROVINCE,
employment opportunities. More than
thirty eight leading BOI and EDB
enterprises who are seeking to employ
CHINA VISITS BOI
staff participated at the job fair and A business delegation from for trade and investment. They of electrical equipment is one
therefore approximately 2000 job Guangdong Province visited the added that there are many companies targeted area which could provide an
seekers were given a rare opportunity to Board of Investment of Sri Lanka (BOI) in Nansha who could be interested in opportunity for future Chinese
meet company representatives and with the objective of exploring investing in Sri Lanka. The delegation investments.
select jobs in diversified fields. This was opportunities for investment in Sri also invited the BOI to visit
indeed a new experience for the youth of Lanka. The delegation consisted of Guangzhou province to meet Chinese Another area of potential co-
the area. Senior Chinese State and Party investors. operation is in the manufacture of
officials and executives of enterprises Guangzhou (formerly Canton) is a Jewellery which is highly developed in
Hon Sujeewa Senasinghe, the State from Guangdong Nansha, since the city has a large
particularly from the port

Minister of International Trade was the
Chief Guest of the opening ceremony of
the job fair. Hon Ashok Abeysinghe, State
Minister of Transport, Hon Nalin Bandara
MP, Hon J C Alawathuwala MP and large
number of Provincial politicians were
participated at the function. Mrs.
Chandanee Wijewardane, Secretary of
the Ministry of Strategic Development
and International Trade, Mr Gamini
I l a n ga ra t n e , D i s t r i c t S e c r e t a r y,
Kurunegala, Mr Duminda Ariyasinghe,
Director General, BOI and many officials
from the Ministry, BOI and EDB were also
participated at the opening ceremony of
the Job fair.
Arrangements have been made by the
BOI to create a comprehensive data base
of job seekers and direct them to
respective enterprises and follow up
action is being done. More Job fairs will
be organized in other Districts in the
future.
Jagath De Silva,
Senior Deputy Director (Media & Publicity)
“
city of Nansha. The Sri Lankan side explained to the
Chinese visitors that the country is
The Chinese delegation was currently seeking to attract more
received by Mr. Duminda
investment in the manufacturing sector,
Ariyasinghe, Director
General of BOI. Assisting particularly focusing on value added
production
”
the Director General were
Ms . Nilu p u l D e Silva,
(Director – Promotion), Mr. highly developed city which is on the
Dilip S Samarasinghe (Director – Eastern Coast of China, where much
Media & Publicity) Mr. Vipula of the country's economic
Jayasinghe Senior Deputy Director development has taken place. Hence
(Promotion – China Desk Officer), Ms. there was considerable opportunity
Kumudini Rathnaweera, (Deputy
to pursue trade and investment with
Director- Promotion) and other this province.
senior officials of the BOI.
Furthermore Nansha is a very
There have been strong economic important port city in China and
relations between Colombo and
particularly developed in the area of
Guangzhou, since both are included E-commerce. Nansha is also a
in China's One Belt One Road (OBOR) platform for trading with Southern
strategic initiative to connect China China. The Sri Lankan side explained
by trade, to Asia, Africa and Europe. to the Chinese visitors that the
country is currently seeking to attract
The leader of the visiting delegation more investment in the
Madam Huaying Zhong, Chairperson manufacturing sector, particularly
Chinese People's Political focusing on value added production
Consultative Conference, Committee in targeted sectors such as electronic,
of Nansha District of Guangzhou, apparel and rubber based products.
indicated that their visit to Sri Lanka The BOI delegation informed the
pool of very professional craftsman
in that industry. Nansha also has a
developed diamond cutting industry
which also exists in Sri Lanka. The
Chinese delegation said they will
promote Sri Lanka in China and
especially in sectors such as
Agriculture, harbour related
activities and Seafood production.
The visit by this delegation to the BOI
is yet another indicator of the growing
interest of Chinese Enterprises for
investing overseas, including in Sri
Lanka. In 2015, Chinese investments
overseas totaled US$145 billion which
represents an 18.3% increase from
the previous year.
In recent months there have been
regular visit by delegations from
different Chinese Provinces which
have come to the island to evaluate
possibilities to invest in the country.
Last year China emerged one of the
biggest FDI generating countries for
Sri Lanka with $150 million (with an
additional $188 million from Hong
Kong) and also Chinese nationals are
now the single largest group of
tourists traveling to the Island.

Asia will was to evaluate the island's potential Chinese visitors that the manufacture
Dilip S Samarasinghe, Director (Media & Publicity)

bail out ...... ...from Front Page

“The rules were written by the West on globalisation,
and we have (been) only played by it. When people
here went and deposited part of their funds and assets
in western countries, no one complained. When their
own people (western countries) started going to
Switzerland, they started complaining...," he added.
Asia will bail the world out... Otherwise, we create our
own systems here (Asia). A very, very stable system."
Speaking about Sri Lanka's economic engagement
with the US, he said both will take the process further
after the presidential elections in the North American
nation.
With India, he said, Sri Lanka will ink the Economic and
Technological Cooperation Agreement (ETCA) this
year.
Earlier at the summit, Commerce Minister Nirmala
Sitharaman said that in "not so encouraging" global
economic environment, South and South-East Asia are
going to be the "engine of growth" for the world. She
was clear that India is committed and driven towards
"equitable and inclusive" growth.
Vedanta Resources Chairman Anil Agrawal put an
emphasis on India developing small and medium
enterprises to push growth. GE Hong Kong SAR Vice-
Chairman John Rice, on his part, said India needs to lay
more emphasis on exports and look at establishing an
export credit agency. For A T Kearney Global Managing
Partner Johan Aurik, the answer lay in jobs and
technological development for India to grow.
Harvard economist Gita Gopinath felt that India needs
to ensure it can manage 8 per cent growth over a
couple of decades. Paytm CEO V S Sharma was of the
view that "the fourth industrial revolution" will
depend on affordable and accessible Internet for all.
According to Niti Aayog CEO Amitabh Kant, the country
needs a radical restructuring of education and health
sectors to sustain growth momentum.

07
w w w. i nv e s t s r i l a n ka . c o m
 Volume 04 - January, 2017 Board of Investment of Sri Lanka

EU-SRI LANKA INVESTOR DIALOGUE TO BOOST

TRADE AND INVESTMENT FROM EUROPE

A meeting was organized by the Board of Doornewaard, Ambassador, Embassy of matter was now to be finalized at the t h re e p o r t s , n a m e l y C o l o m b o,
Investment of Sri Lanka and the Ministry the Kingdom of Netherlands, Ms. Eva- European Parliament for final approval. Tr i n c o m a l e e a n d H a m b a n t o t a .
of Development Strategies and Furthermore, there would be 4 major
I nte r n at i o n a l Tra d e to a d d re s s airports in the country at Colombo,

“
outstanding matters concerning Another very positive Hambantota, Hingurakgoda and Palali.
investors from the European Union. The Unity Government had enabled development was the end of
the ban on Sri Lanka's
Sri Lankan side was led by Hon. Malik
Samarawickrama, Minister of
democracy and reconciliation fisheries products. Minister
Samarawickrama spoke of
Development Strategies and
International Trade assisted by his
in Sri Lanka and had been the need to improve exports
further mentioning fruits,
Ministry secretary Mrs Chandani following a policy that stressed vegetables, floriculture and
Wijewardhana, Mr. Upul Jayasuriya and
Mr. Duminda Ariyasinghe, respectively establishing a vibrant market horticulture products as
additional goods to be
Chairman and Director General of the
B O I a n d M rs . I n d i ra M a l watte economy but which was exported to the EU.

Chairperson of the Export Development
Board.
The European Union consists of 28
members states and is considered the
world's largest trading block with a
cumalative GDP of Euro 16.5 trillion. The
EU was traditionally Sri Lanka's premier
”
socially orientated. Sri Lanka was currently
experiencing 6% - 7 %
van Woersem, Deputy Head of Mission, economic grow th and
Embassy of the Kingdom of Netherlands, interest rates are very attractive. He
Mr. Gerhard Trumper, Head of added that he wanted various countries
Commercial Section,Embassy of the to have ratings which would be on par
Federal Republic of Germany, Mr. with those of India.

On the political front Minister

source of FDI and remains one of the
country's major trading partner in terms
of exports and imports.
The European Union delegation was led
by H. E Tung Lai Margue, Ambassador of
the European Union to Sri Lanka and the
Maldives, who was assisted by the
ambassadors and commercial
counselors of the European Union
countries that maintain embassies in Sri
Lanka.
These included Mr. Roshan Lyman,
Deputy Head (Political, Trade &
Communications section, Delegation of
the European Union to Sri Lanka & the
Maldives, Dr. Giandomenico Milano,
Deputy Head of Mission, Embassy of the
Re p u b l i c o f I ta l y, H . E . J o a n n e
Hugues Reydet, Economic Counseller,
Embassy of France in Sri Lanka &
Maldives.
In addition a number of senior officials of
Sri Lankan Ministries and Departments
and the BOI were involved in the
discussions and present at the meeting.
Hon. Malik Samarawickrama, Minister of
Development Strategies and
International Trade welcomed the
European Union delegation and stated
that ideally this group should meet once
every quarter to resolve at very short
notice whatever issues that may exist or
arise. He thanked the EU for
recommending that the GSP+ facility be
restored to Sri Lanka adding that the
Samarawickrama said that the National
Unity Government had enabled
democracy and reconciliation in Sri
Lanka and had been following a policy
that stressed establishing a vibrant
market economy but which was socially
orientated.
Economic development was being
promoted in all regions of the country to
bring about a greater integration for all.
At an International level, Sri Lanka was
seeking to actively develop
comprehensive Free trade agreements
with both China and Singapore. Another
development was ETCA with India and
Pakistan.
The objective of this policy was to ensure
that Sri Lanka would be highly integrated
within the Asian region, which further
augured well for regional trade and
investment.
There were also steps to improve the
business environment, by looking at
restructuring export trade in order to
make Sri Lanka a more competitive
country.
Currently the Prime Minister was
working at rebalancing the economy of
Sri Lanka with the development of major
economic corridors such as the South
Western one encompassing Kandy,
Colombo and Hambantota and North
Eastern one including Jaffna and
Trincomalee.
The country would also focus on the
developing and strengthening of the
Areas of development in Sri Lanka in the
future would be around the western
megapolis, major tourism projects
throughout the island, the Kandy City
Development and the economic
rejuvenation of the Northern Province.
Samarawickrama stated that these
would be important opportunities for
the investors from the European Union
to look at in the future. Among the
other reforms that the Minister spoke of
were changes which would be
implemented in next few months, the
establishment of a single window for
investment whereby investors would
obtain approval for their projects within
a timeframe of just two weeks.
Samarawickrama stated that the BOI
Chairman is currently taking measures to
bring about these changes. He added
that by March 2017 there would be a
new structure that would focus on
investment promotion. He concluded by
stating that Sri Lanka is now ready for
business and that 2017 would be a very
crucial year where major improvements
would be introduced and would play an
important part in the country's future
economic development.
H E Tung Lai Margue, Ambassador of the
European Union responded on behalf of
the European Union and representatives
of the other European Union member
states. He stated that the EU Sri-Lanka

08
w w w. i nv e s t s r i l a n ka . c o m
Volume 04 - January, 2017 Board of Investment of Sri Lanka

JAPANESE SME BUSINESS DELEGATION VISITS

BOI ON AN EVALUATION MISSION
The Board of Investment of Sri Lanka hosted a
large delegation consisting of representatives
from the World Business Society of Tokyo
Small and Medium Enterprise Consultant
Association (WBS) who are currently visiting
Sri Lanka with the objective of evaluating
investment opportunities and opportunities
of partnerships between Sri Lankan Small and
Medium Enterprises and Japanese SMEs.

One factor which interested the delegation

was the fact that Sri Lanka's economy had
maintained high levels of economic growth as
a result of the country enjoying political
stability and increased security since the end
of the conflict in 2009.
The visiting delegation consisted of
representatives of 19 Japanese enterprises
who will act as consultants. They will
disseminate information on the investment
potential in Sri Lanka to Japanese SMEs.
In addition to this the Japanese delegation
expressed an interest in Sri Lanka since the
country is now a middle income nation by
World Bank classification and is committed to
attracting Foreign Direct Investment. Other
factors which are an interest to the Japanese
delegation is the healthy service sector and
the commitment on the part of the
authorities to stimulate higher value
production while taking into consideration
the lessons learned from other Asian nations.
Japan is already a major partner of Sri Lanka,
having participated significantly in developing
the country's airport, railways, power supply,
water and sewerage sectors. Japan is also
interested in Sri Lanka's knowledge industry
and examining option for investment. A
central point of interest to Japanese
enterprises is Sri Lanka's Geo political
The BOI hosted a delegation of Japanese SMEs interested in Sri Lanka's investment potential
importance, notably the close proximity to
the Indian subcontinent, and potential of
serving as a base to emerging trade between
Africa and south East Asia.
“a large
Sri Lanka, as a country with
English speaking
population, is well placed to
act as staging point to
connect South Asia with
East Asia, notably China.
Sri Lanka, as a country with a large English
” Silva, Director (Promotion) and Mr.
speaking population, is well placed to act as
staging point to connect South Asia with East
Asia, notably China. This factor makes the
island an attractive destination for future
Japanese investments.
Mr. Dilip S Samarasinghe Director (Media &
Publicity) made a presentation to the
Japanese delegation on the potential of
investing in Sri Lanka. Sri Lanka is particularly
keen in attracting investments with a high
value addition, where skills can be imparted
to the working population. Sectors such as
high-tech manufacturing, the IT and BPO
sector, logistics and tourism are examples of
areas which the BOI is keen to promote with
Japanese enterprises.
The Japanese delegation consisted of a wide
range of enterprises which could be defined
as SMEs.
The BOI was represented by Mr Prasanjith
W i j a y a t h i l a ke , E x e c u t i v e D i r e c t o r
(Promotion), Mr Dilip S Samarasinghe,
Director (Media & Publicity), Ms Nilupul De
Dhammika Basnayake, Assistant Director
(Promotion) Mr Hideo Horiguchi, JICA
Advisor to the BOI. The Japanese delegation
was led by Mr. Jun Sugiura, Chairman of the
World Business Associates and who was
assisted by Mr Athula R F Edirisinghe and Mr
Nihal Seneviratne of JASTECA.
The delegation will spend approximately one
week in Sri Lanka on their fact finding mission.
Dilip S Samarasinghe
Director (Media & Publicity)

dialogue is a useful tool both to attract
new investors and help those already in
the country.
In terms of economic importance the EU
is Sri Lanka's first trading partner
representing 31% of all of Sri Lanka's
exports. It is also Sri Lanka's 2nd largest
source of imports. Ambassador Margue
added that the EU imported an
estimated US$1.6 billion worth of
Lanka will have duty free access to the The Ambassador concluded by saying was seeking the possibility of setting up a
European Union market on all her that EU and Sri Lanka have been strong central portal where planned projects
products. partners historically and at present these would be listed.
relations are being further
Hence fisheries products Both sides also discussed matters
and agricultural relating to customs including facilitation
products which the
Minister had mentioned
would also be covered
under the GSP+
“ In terms of economic
importance the EU is Sri Lanka's
and also a clear definition of what
constitutes "used cars". Individual
European Union delegation brought to
the attention of the Sri Lanka side
agreement and will be first trading partner representing specific instances of companies that

garments and also was involved in
building up further economic ties with
Sri Lanka such as new EU funded trade,
lifting the fisheries ban and working
towards the restoration of new GSP+
benefits for Sri Lanka.
Hence the EU and Sri Lanka have worked
very closely together and on the fisheries
sector and have developed a very close
co-operation. Sri Lanka now has a very
efficient fisheries set-up which is unique
in the region. Furthermore Sri Lanka
now has good governance and has met
the EU standard for GSP+ to be restored.
The European parliament now has to
pass through the GSP+ restoration to Sri
Lanka and once that is complete Sri
able to enter the
European Union duty 31% of all of Sri Lanka's exports.
free. The Ambassador
also stated that one very
Positive aspect of GSP+ agreement was
its potential for bringing about backward
integration that would help in the
manufacture of Yarn in Sri Lanka which is
needed by Sri Lanka apparel
manufacturers for their production.
The Ambassador stated that the
dialogue would be an excellent platform
to address items issues that impact on
investment such as the lease of land,
ownership of property and the question
and the possible awarding of a 5-year
visa for investors in Sri Lanka.
”
strengthened. He wished every success
to the EU Sri Lanka business dialogue.
The agenda of the discussion included
subjects such as the 5 year visa to be
accorded to foreigners residing in Sri
Lanka. This was being considered in a
favourable light.
Another area which was discussed
included transparent tender procedures
to ensure that companies from the EU
can also bid for Sri Lankan Government
Tenders. The Sri Lanka Government
needed assistance. The question of
colour coding of food of sugar levels was
also raised by the EU side.
Hence the Ministry of Development
Strategies and International Trade and
the BOI by relaunching the EU-Sri Lanka
Business dialogue are confident of the
emergence of stronger economic ties
with the European Union, Sri Lanka's
premier trading partner and the world's
largest trading block. Favourable
conditions have be created for greater
levels of trade and investment inflows.
Dilip S Samarasinghe
Director (Media & Publicity)

09
w w w. i nv e s t s r i l a n ka . c o m
 Volume 04 - January, 2017
Roundtable conference with delegation
from Jilin , China
12
A round table conference was held by BOI for a visiting delegation from Jiling Province, China
A delegation from China led by Hon. Sui Zhong
Cheng, Vice Governor of Jilin Province consisting
of 33 officials and entrepreneurs from that
province visited the BOI with the purpose of
exploring avenues for trade and investment. The
delegation was welcomed by Mr. Upul Jayasuriya
BOI Chairman and Mr. Duminda Ariyasinghe
Director General. Mrs. Indira Malwatte,
Chairperson of the Export Development Board
was also present. BOI had organized a roundtable
conference where the high powered delegation
from China met senior officials of the BOI and
Export Development
“
Board.
a rise in Chinese investments
Jilin is a strategically in Sri Lanka is well on its way, and
located Province of
Sri Lanka can offer smooth
North Eastern China
bordering Russia and handling of investment, since key
North Korea. It is an
industrialized province
areas such as customs, exchange
with a GDP of about control and immigration are now
US$122 billion and a
per capita income of
under one roof, namely the BOI.
US$8200.
Mr. Jayasuriya briefed to the visiting delegation
on the history of the BOI, which was established
in 1978 with mandate to attract investment into
the country. He added that Sri Lanka welcomes
all investments including those from China.
The Chairman also added that China's position is
unique in Sri Lanka as steps have been taken to
establish a dedicated Export Processing Zone for
Chinese enterprises and for the management of
Hambantota Harbour and Airport to be
undertaken by Chinese enterprises. He further
described the longstanding ties between Sri
Lanka and China. For example both countries
have a long Buddhist tradition and this has
resulted in cultural similarities. Furthermore
both are tea producers which is an integral part of
the culture both countries.
10
At a diplomatic level they have been many visits
by the highest level officials of both countries to
Sri Lanka and China. In recent years both the
President and the Prime Minister of Sri Lanka had
made official visits to China resulting in increased
economic co-operation between the two
countries. Furthermore Chinese President Xi
Jinping has also visited Sri Lanka on a State Visit in
recent years.
Jayasuriya said “a rise in
Chinese investments in Sri
Lanka is well on its way,
and Sri Lanka can offer
smooth handling of
investment, since key
areas such as customs,
exchange control and
immigration are now
under one roof, namely
the BOI. Furthermore, Sri
”
Lanka does have a capable
workforce which can be
employed in many
industries.”
The Chairman also stated that currently the
largest number of delegations visiting Sri Lanka
for investment are those from different provinces
of China who are exploring options for
investment.
A presentation in Chinese language was done by
Mr. Vipula Jayasinghe Senior Deputy Director
(Promotion – China Desk Officer) for the visiting
delegation.
The Chinese delegation was also briefed by Ms.
Indira Malwatte Chairperson of the Export
Development Board, who added that Sri Lanka is
actively seeking to expand her exports to China.
She stated that there will soon be an opportunity
for both countries to access each other's markets
w w w. i nv e s t s r i l a n ka . c o m
Board of Investment of Sri Lanka
when a Free Trade Agreement is reached
between Sri Lanka and China. This agreement is
now been discussed, but when completed
Chinese companies will enjoy market access to
South Asia through the Free Trade Agreements
that Sri Lanka has already entered into with India
and with Pakistan.
In the future Sri Lanka is expected to enter into
another FTA with Singapore. Hence Sri Lanka is a
well integrated nation in the Asian region in terms
of market access.
The leader of the delegation Mr Sui Zhong Cheng
Vice Governor of Jilin Province also addressed the
gathering. He stated that Sri Lanka is an
important country for China for the “One Road
One Belt” Strategic Initiative of the People's
Republic of China. Under this initiative China was
building an extensive link to countries in Asia,
Africa, the Middle East and Europe on the historic
Silk Route.
Sri Lanka is expected to sign very soon a trade
agreement with China. However, the traditional
friendship between Sri Lanka and China is much
more deeply rooted and therefore is expected to
grow very much further. He added that many key
industries of China are located in Jilin Province
and some of these companies are represented in
the delegation. For example the First Automotive
Works which manufactures Red Flag Limousine is
based in Jilin.
Furthermore, the Jilin province is also a leader in
the manufacture of railway vehicles. In fact
China's biggest railway manufacturing plant is in
Jilin Province which also has an advanced high
speed railway network. Vice Governor Sui Zheng
Chen also stated that a high speed railway
network could be very relevant to Sri Lanka and
would significantly contribute to develop the
country's economy.
Another strength of Jilin is in the area of
Agriculture and Agro industries.
The Vice Governor further stated that whilst Jilin
Companies were exploring the possibility of
investing Sri Lanka, Jilin was also being promoted
in China as a province for investment. He added
that it is important to look at two way investment
between Sri Lanka and China.
During their visit the delegation was studying Sri
Lanka's business climate to explore avenues for
investment. Thereafter an interactive session
between the BOI and individual companies began
and some of the companies present were
engaged in manufacturing of fertilizers, the
construction of pipelines, property development
and value added tea.
One of the Companies represented was engaged
in the construction of the famous Birds Nest, the
Iconic stadium of the Beijing Olympics. Hence this
meeting could offer a potential for future
investment from China's Jilin Province.
Dilip S Samarasinghe
Director (Media & Publicity)
Volume 04 - January, 2017 Board of Investment of Sri Lanka

Chinese Business Delegation
A very high powered business delegation led by
Mr. Lu Xinhua, Chairman of the Council for
Promoting South-South Co-operation (CPSSC)
and former Vice Minister of Foreign Affairs,
visited Sri Lanka recently. The delegation
consisted of several retired Chinese
Ambassadors and more than 30 leading Chinese
Entrepreneurs. The Board of Investment of Sri
Lanka warmly welcomed the delegation and
arranged for them to visit the BOI Export
Processing Zone at Katunayake (KEPZ).
On their visit to the Katunayake Export
Processing Zone the Chinese delegation was
accompanied by BOI Officials and also Ms.
Hwang Wanting, Third Secretary of the Chinese
Embassy in Colombo. Director (Zones) - KEPZ,
Mr. M K D Lawrance, Zone Administration and
the other officials received the delegation. A
brief presentation on the zone layout and of the
operational background of the zone was
conducted by Mr. Lawrence (Director -Zones).
CEO of Boehm Leckner Multi Moulds (Pvt) Ltd,
High Powered
Visits BOI Zone
Mr. Bandara also gave a briefing about his
factory to the delegation at the KEPZ
Auditorium. Boehm Leckner Mulri Moulds (Pvt)
Ltd Mr. Raj Nanayakkara - Director (Admin and
Finance) was also present at the meeting and
facilitated the factory visit. A comprehensive list
of factories located within the zone was also
distributed to the members for future interest
and bilateral co-operation.
Apart from the presentations and the briefings
the Chinese visitors inspected some of the
leading factories in the zone.
Hirdramani Mercury Apparels (Pvt) Ltd – a
company, involved in manufacturing garments
was one of the high technology companies
covered in the visit. The delegation was
received by Mr. Cyril Gooneratne (H R Manager)
of the company. Thereafter they visited Boehm
Leckner Mulri Moulds (Pvt) Ltd, a plant that
manufacture Injection Moulds, plastic items and
Pic Mac Sets. Director Mr. Raj Nanayakkara
warmly received the delegation.
Lalan Eco Latex (Pvt) Ltd, a Sri Lankan Company
manufacturing Rubber Products (Mattresses
and pillows etc) was also visited by the
delegation. Delegates were received by Mr.
Ashan Kurera - HR Manager of the company.
The visit to a BOI Export Processing Zone
provided an insight into the manufacturing
capability of Sri Lanka, which was important for
the Chinese enterprises since they were
evaluating the possibility of investing in Sri
Lanka.
Chinese investors are encouraged by the
Chinese Government to invest overseas
including Sri Lanka which has a long history of
friendship with China. Sri Lanka is also part of
the “One Belt One Road” (OBOR) initiative of the
Chinese Government to link China economically
to Asia, the Middle East, Africa and Europe.
Dilip S Samarasinghe, Director (Media & Publicity)

Sri Lanka tourism hits record $3.5 Bn in 2016
AFP: Sri Lanka earned a record $3.5
billion from tourism in 2016, seven
years after the end of a devastating
civil war, a Government minister
said.
But sources in the industry warned
that the post-war boom could be
The Chinese business delegation visited a factory at Katunayaka Export Processing Zone
short-lived as planned airport
closures forced the cancellation of
international flights.
Tourism on the Indian Ocean island
suffered heavily during a decades-
long civil war that ended in 2009, but
has been recovering in recent years.
Tourism Minister John Amaratunga
said Sri Lanka had 2.05 million
arrivals in 2016, short of its target of
2.2 million but still the best the island
has ever recorded.
The minister said he hoped for a
further rise in 2017, but industry
figures warned tourism could fall by
30 percent, hit by the daytime
closure of the Colombo international
airport for three months for a
runway upgrade.
“The drop will be because of the
partial airport closure and (national
carrier) SriLankan Airlines stopping
direct flights to France and
Germany,” a senior tourism official
told AFP.
International airlines have reduced
flights to Colombo during the airport
refurbishment that is expected to
continue until April.
“
Sri Lanka’s loss-making national
carrier has said it will lose $50 million
as a result of flight cancellations.
Tourists have long been attracted to
Sri Lanka for its golden beaches,
cultural sites and picturesque tea
plantations.
Authorities say tourism has also
been boosted by improvements in
the island’s international reputation
for human rights following the
ousting two years ago of former
president Mahinda Rajapakse,
widely criticised for suppressing
dissent.

11
w w w. i nv e s t s r i l a n ka . c o m
 Volume 04 - January, 2017
BOI PARTICIPATES AT 13 CHINA
ASEAN EXPO 2016 IN NANNING
(GUANGXI PROVINCE AND SRI LANKA INVESTMENT PROMOTION CONFERENCE 11TH -14TH SEPT 2016
The China-ASEAN Expo (CAEXPO) is a grand
and important platform for friendly
exchanges, business promotion and
cooperation in various fields between China
and the ASEAN countries. With support from
China and the 10 ASEAN countries, CAEXPO is
the only international trade fair which themes
on the China-ASEAN Free Trade Area and aims
at promoting the cooperation and common
development of China and ASEAN.
Have been held for 12 consecutive years,
CAEXPO attracts high-profiled participants
from political and diplomatic circles:
thousands of merchants, 25,580 enterprises,
more than 100 business associations and
delegations and 143 conferences involving 30
different fields.
The Commodity Trade Pavilion at the CAEXPO
features about 2,800 indoor booths arranged
by the 10 ASEAN Countries, focuses on brand
12
TH
products, food & agro-based products,
furniture and
furnishing, arts &
crafts, jewellery &
accessories, consumer
goods, etc.
Each year, CAEXPO
welcomes about
60,000 trade visitors
and businessmen from
over 20 countries and
regions who search for
markets and business
opportunities.
Rationale
To further enhance the multilateral
investment and trade cooperation with South
Asia the Organizers of the 13th China – ASEAN
Expo 2016 offered “Special Guest Country”
status to Sri Lanka which was a rare honor to
our country. The event was co-sponsored by
China's government and CAEXPO secretariat
and 10 ASEAN countries and the Special Guest
Country option is a major mechanism in
CAEXPO for China to link to economies it
considers as important and it is the first time
that CAEXPO has invited a country along the
21st Century Maritime Silk Road to be the
Special Guest Country.
In view of the above the Department of
Commerce of Sri Lanka under the Ministry of
Industry and Commerce coordinated Sri
Lanka's participation at the above Exhibition
in association with the Ministry of Foreign
w w w. i nv e s t s r i l a n ka . c o m
Board of Investment of Sri Lanka
Affairs, Export Development Board, Sri Lanka
Tea Board, Sri Lanka Tourism Promotion
Bureau, Board of Investment and National
Gem & Jewellery Authority.
As the “Special Guest Country” at the 13th
CAEXPO, Sri Lanka will showcase its current
development and opportunities in the fields
of trade, investment and tourism. Sri Lanka
was offered 105 sqm for the Country Pavilion
and 50 exhibition booths free of charge at the
Expo where Sri Lankan exporters displayed
their products and services. Further, Sri Lanka
was also given an opportunity to arrange an
Investment Promotion Conference on the
sidelines to the above event.
This was considered by the Board of
Investment of Sri Lanka as an excellent
opportunity to promote Sri Lanka as an
attractive Investment Destination to
encourage Chinese Investments into Sri
Lanka, especially from Guangxi Province
particularly at a time when there is much
uncertainty and doubt in the minds of
existing Chinese investors.
Event
Sri Lanka which is located in a strategically
important place along the maritime silk route
was given the rare honor of being the Special
Guest Country at 13th CAEXPO 2016. Only
South Korea and Australia has got this honor
prior to Sri Lanka. A series of special guest
country activities including a Sri Lanka
pavilion, national promotion conference and
commodity fair was held during the 13th
CAEXPO.
This event created a meeting platform for
Lankan manufacturers and exporters to link
with many eager Chinese importers and
manufacturers and also for the Chinese
businesses, a great window of opportunity to
the South Asian markets through Sri Lankan
partners and Sri Lanka's Free Trade
Volume 04 - January, 2017
Agreements with India and Pakistan. Also the
third round of negotiations on the proposed
China-Sri Lanka FTA were completed in
August
Sri Lanka's Minister of Industry and
Commerce Rishad Bathiudeen lead a strong
25-member trade delegation of Sri Lankan
exporters, business representatives and
government officials to China to participate
in the 13th China-ASEAN Expo (CAEXPO)
which was held from 11th-14th 2016, at the
Nanning International Convention &
Exhibition Center in Nanning (capital of
Guangxi Zhuang autonomous Region), China.
Among the Lankan sectors participating at
the CAEXPO 13 were Ceylon Tea, gems and
Jewellery, handicrafts, handlooms, batik,
lacquer work, and tourism.
The following officer was nominated to
represent the BOI at this event.
Mrs. Kumudini Ratnaweera (Deputy Director)
and organized to the China Division.
The Department of Commerce under the
Ministry of Industries who coordinated the
event allocated BOI an information desk at
the Sri Lanka country Pavilion together with
other government stakeholders viz Sri Lanka
Tea Board, National Gem & Jewellery
Authority., National Design Centre and Sri
Lankan Airlines.
The BOI prepared images to design the
illuminated pillars of the Sri Lanka pavilion
highlighting the key sectors for investment
and distributed flyers prepared in Chinese
language outlining the overview of the
country's business environment and the
investment policies to the interested visitors.
Arrangements were also made to screen the
corporate video in Chinese language.
Mrs. Kumudini Ratnaweera
Deputy Director (Investment Promotion)
Board of Investment of Sri Lanka
Nanning Investment Promotion Conference
An investment Promotion Conference was
organized on the sidelines of CAEXPO, by the
Department of Commerce of Sri Lanka in
association with the Sri Lanka Consulate in
Guangzhou and Secretariat of the Organizing
Committee of the 13th CAEXPO 2016 at the
Conference Hall of Nanning International
Convention & Exhibition Centre.
Opening remarks were made by Mrs Shanika
Dissanayake – Hon Consul General of Sri Lanka in audience with a very memorable and long lasting
Guangzhou. impression about the rich cultural heritage,
wealth of natural resources, bio diversity blended
The Hon Minister of Industry and Commerce with rare species of fauna and flora indigenous to
Rishad Bathiudeen made the keynote speech Sri Lanka and wild life sanctuaries. This was
highlighting the investment climate and the trade
followed by B2B meetings.
potential in Sri Lanka which was well attended by
over 60 participants.
Hon Minster's address was followed by a speech
from a Chinese Government official Madam Liu.
Thereafter a presentation made by Mr Gan
Shuiyan , CEO of Creative Cycles (Pvt) Ltd a
company established in Katunayake Export
Processing Zone to manufacture bicycles for
export market who spoke very positively about
his successful operations in Sri Lanka since 2004.
His valuable contribution helped to make a long
lasting impression and gave good proof that the
time is right for investments in Sri Lanka and that
the country is willing and able to assist investors in
a very fast and Professional manner.
Ms. Kumudini Ratnaweera – Deputy Director
(Investment Promotion) of BOI made a
presentation on Investment Opportunities in Sri
Lanka while other state agencies viz Dept of
Commerce, Tea Board Jem & Jewellery Authority,
Sri Lanka National Design Centre officials made
presentations covering their respective areas
which gave the distinguished gathering a
spectrum of wide aspect
of the economic, trade
and investment policies
a n d b u s i n e s s
environment of Sri Lanka.
Finally Ms Ruwanthi
Ariyarathne –
Commercial Counsellor
of Sri Lanka Embassy in
Beijing wounded up the
session with a very
illustrious presentation
on the tourism potential
of the country leaving the
13
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 Volume 04 - January, 2017 Board of Investment of Sri Lanka

One Stop Shop

Ease of Doing Business
Facilitation Centre (EDBFC)
The Board of Investment of Sri Lanka (BOI) formally announces that the new Ease of
Doing Business Facilitation Centre has been opened at Level 27, West Tower, World
Trade Centre, Echelon Square, Colombo 1 to provide a fast track service to all investors.

The following services required by investors are now available

at one location;

Ease of Company Registration

Resident Visa processing for BOI Investors
Department of Inland Revenue functions
Custom functions
Environment concurrence for expediting environmental Clearances
Attending to Utility issues
Assistance in finding suitable land for BOI projects
Attending to queries of new investors and existing BOI enterprises

BOI
SRI LANKA

Level 27th, West Tower, World Trade Centre, Colombo 1

Tel: 011 2338359, Email: dumindap@boi.lk, Fax: 011 2333129

14
w w w. i nv e s t s r i l a n ka . c o m
Volume 04 - January, 2017
Sri Lankan auto-parts maker rides global demand wave
With Japanese insights, an auto-parts maker leads the way for Sri Lanka's industrial sector.
MARWAAN MACAN-MARKAR, Asia regional correspondent
Rohan Pallewatta talking about the impact sensors for airbags and seat belts for cars that his
factory producers. (Photo by Marwaan Macan-Markar)
BIYAGAMA, Sri Lanka -- Across a
brightly-lit factory floor in a free
trade zone in Biyagama, a
commercial town on the eastern
fringes of the Sri Lankan capital,
Colombo, workers in white
baseball caps are hunched over
long tables, methodically
threading wires into matchbox-
sized containers. The factory,
which makes impact sensors for
seat belts and vehicle airbags,
enjoys the automobile industry's
much-sought-after 1PPM (parts-
p e r - m i l l i o n ) q u a l i t y s afet y
standard, meaning that only one
defect is permissible for every
million parts produced.
Lanka Harness Company, which
owns the factory, trades on this
record as its calling card. "This is
the global standard for a critical
Women attaching wires to the impact sensors
component in a car that can decide
between life and death for a
passenger," Rohan Pallewatta, the
company's executive chairman,
told the Nikkei Asian Review. "It
requires the highest quality level;
there can be no exceptions.”
That may explain a remarkable
surge in orders since October 2015
for this 11-year-old company,
which had a turnover of $40
million last year. To cope with
demand, Pallewatta has expanded
into an adjoining building, sharply
increasing his army of nimble
fingered workers to 1,000.
The new orders have nearly
doubled monthly production to 2
million sensors, from a previous
average of 1.2 million a month.
The surge in demand followed a
global scandal that has shaken the
automobile industry: defective
airbags in millions of vehicles,
which continue to be recalled
following a string of deaths and
injuries of passengers.
Most of Lanka Harness Company's
fresh orders are for
Takata, a Tokyo-based
auto-parts company
that supplies impact
sensors to Toyota, the
world's biggest car
maker, which is one of
the automobile
companies affected
by the faulty airbags.
Sri Lankan analysts
have noted the niche that Lanka
Harness Company enjoys, despite
its location in a country with no
automobile sector to speak of. "It
is amazing for one company in Sri
Lanka to be part of such a high-
value chain in the car industry,"
said Anushka Wijesinha, chief
w w w. i nv e s t s r i l a n ka . c o m
“ A country does not have to
produce a whole car to reap the
gains from the rapidly expanding
global demand for automobiles
- Prof. Premachandra Athukorala
economist of the Ceylon Chamber
of Commerce, a Colombo-based
business body. "Catering to
Japanese quality standards and
retaining such a market share is
unusual."
But there is something even more
noteworthy about Lanka Harness
Company: It belongs to a small but
growing number of medium-sized
enterprises in Sri Lanka's free
trade zones that are tapping into
the growth of global production
networks, often producing highly
specialized components.
"A country does not have to
produce a whole car to reap the
gains from the rapidly expanding
global demand for automobiles,"
said Premachandra Athukorala,
professor of economics at the
Australian National University in
Canberra. "It can specialize in a
given slice of the production
process of automobiles, as the
Board of Investment of Sri Lanka
”
Lanka Harness case vividly
illustrates."
According to Athukorala, who
specializes in global production
networks, this shift in the global
supply chain is fertile ground for
emerging economies with
relatively cheap but skilled labor.
Sri Lanka has companies supplying
knitted components to
multinationals such as Nike, the
U . S . s p o r t s w e a r s u p p l i e r,
electronic components for lighting
devices to Japanese companies,
sensors for Airbus, and metal
components to other companies
in the European Union.
All this is part of the development
of a system of "international
production fragmentation" that is
replacing much bilateral trade
between countries, Athukorala
said.
15
 Volume 04 - January, 2017 Board of Investment of Sri Lanka

THE IMPORTANCE OF TECHNOLOGY AND

KNOWHOW IN ECONOMIC DEVELOPMENT
- GUEST LECTURE BY PROF. RICARDO HAUSMANN HARVARD KENNEDY SCHOOL OF GOVERNMENT
A highly informative lecture was
held recently at the BMICH where
the guest speaker was the eminent
Prof. Ricardo Hausmann of Harvard
University's Kennedy School of
Government. Prof. Hausmann
visited Sri Lanka to follow-up on a
programme to build capacity
among senior officials at the Board
of Investment of Sri Lanka, the
Export Development Board and
Tourism Authority.
One subject which has long
intrigued this writer, especially
since he spent his early life overseas
and had the chance to visit many
countries, is the fact that Sri Lanka
could achieve considerably more in
that Sri Lanka does have strengths,
fo r exa m p l e i n t h e H u m a n
D e ve l o p m e nt I n d ex , h av i n g
achieved a massive reduction of
poverty levels. However, the
country has suffered in the last 4
years from slow economic growth
rates which are below 4%. This is
contrast to many of our Asian
neighbours whose economies have
grown at trates of about 7% or even
more. Hence there was a need to
reaccelerate the Sri Lankan
economy.
One explanation that can be
provided for the shortcoming was
that Sri Lanka's exports have not
really experienced growth when
compared to the growth of
boosted China's exports and The assimilation of technology has
contributed to enriching the undoubtedly an important part to
population. play in these differences and the
Prof. Hausmann elaborated as to
In the case of Thailand there is also a what really does constitute
movement to go t e c h n o l o g y.
into the production
o f m a c h i n e r y.
Tu n i s i a o n t h e
“ Sri Lanka would need
to achieve greater
complexity in production
Technology is in
fact a successful
assimilation
other hand has not achieved by
achieved this
capability and achieve having the right
transformation and a higher quantum tools, the right
Sri Lanka is still
largely depended
on the export of apparel.
of know-how.
” c o d e s o r
procedures, but
more importantly the necessary
know how to make development
Where Sri Lanka has achieved some possible.
successes in diversifying her
exports, is in areas such as logistics, In order to acquire successfully the
finances and tourism. Sri Lanka is necessary technology, a country
also not a competitor of some of the should have heterogeneous teams
low end countries in the area of that work together to achieve the
manufacture. Hence this middle necessary requirements needed for
position does place the island technology to exist.
nation in an ambiguous situation
where it imperative that it moves to Hausman also examined the case of
a higher levels of production of two individuals, the former being an
exportable goods. Inuit living by catching fish, building
his own igloo and travelling by dog
Prof. Hausman also addressed the sleigh and then comparing him to a
question of how countries become modern office worker using a
wealthier. Drawing on Adam computer. He added that whilst the
Smith's classic work "the Wealth of latter may seem technologically
Nations", Hausmann stated that in more advanced, he would be totally
the 18th Century the Netherlands incapable of surviving in a hostile
was considered the richest country environment like the Arctic. Hence
in the world and others were more the question of what does really
or less equivalent. constitute technology remains a
highly debatable subject.

“ In order to acquire successfully
the necessary technology, a country
should have heterogeneous teams
that work together to achieve the
necessary requirements needed
exports of many Asian However, in today's global economy
countries. One of the main there are enormous disparities The technological complexity of
reasons for this, according to between states with Malawi being many products manufactured today
Prof. Hausmann, was that considered the world poorest such as a Boeing airliner is often
other Asian countries have c o u n t r y. I n t h e We ste r n more than what a single country can
diligently developed new atmosphere that position is held by hope to produce. Hence in today's

”
for technology to exist. types of businesses and have Haiti. globalized economy, technology is
terms of development despite t h e refo re s u c c e s sf u l l y not confined within the borders of a
having an educated population, an diversified their export base. For Furthermore there are enormous single country but often scattered in
excellent locations, some natural example China has added 70 new discrepancies that exist even within many parts of the world. Successful
re s o u rc e s a n d c o m p a ra t i v e products for exports while Sri Lanka individual countries, with an production is therefore based on
advantages in many areas. Some has only achieved 7 products. The enormous diversity between the ability to work together to build
answers to that daunting question importance of the new products to regions. In Mexico for example the co m p l ex p ro d u c t s , s u c h a s
can indeed be found in the lecture the economy is that they contribute poorest state Guerrero has a GDP of commercial aircraft.
delivered by Prof. Hausmann. towards boosting the GDP of the US$ 5,000 while the state of Nuevo
country. In the case of China the Leon, the GDP is at $42,000, which Generally speaking, rich countries
The lecture however sought to e c o n o my h a s a l s o b e c o m e is comparable to that of the make complex goods while poor
examine ways in which countries technologically more advanced Republic of Korea. countries are forced to produce
such as Sri Lanka could achieve with a planned move from the relatively few goods that almost
higher development by identifying production of garments to that of Hence there is a factor of 8 just every other country is quite capable
bottlenecks and creating a timeline electronics and from there on, to between regions of Mexico and this of making.
to achieve high economic growth. producing machinery. Hence the divergence exists in many countries
Prof. Hausmann began by stating addition of these new products has in the world. Sri Lanka's position is somewhere in

16
w w w. i nv e s t s r i l a n ka . c o m
Volume 04
03 - January,
August, 2016
2017 Board of Investment of Sri Lanka

the middle of the spectrum of
nations. However, this analysis is
somewhat complex since in
countries such as Turkey and
Mexico there are considerable
differences with regards to the type
o f g o o d s
produced.
examples of Ghana and Thailand to
show how development can take
shape.
In 1962 the two countries were in
fact similar in terms of GDP per
capital and in fact
Ghana may have
where textile and rubber (both
leading exports at present) can be
combined to manufacture specific
medical products. Harvard
University is currently working with
the BOI and the Ministry of
D e v e l o p m e n t S t ra t e g y a n d
International Trade to develop a
scenario could be considered
possible in the case of Sri Lanka
where a large overseas population
could play a role in bringing in
knowhow.
Hausmann also spoke of the need
to understand better the dynamics

Hausmann said
that a country like
India endowed
“ Sri Lanka's success

determined by the
extent to which the
e v e n
in the long term will be advantaged, having
b e e n

invested more in
education and
new products space for the
country.

Sri Lanka's success in the long term

of business travel to ascertain
whether it could lead to greater
investment and exports.

with advanced country can develop a benefiting from will be determined by the extent to In addition it is imperative that FDI
technology and great diversity of skills being an English which the country can develop a as a percentage of the GDP be
t h e refo re h a s which turn will be speaking country. great diversity of skills which turn increased if Sri Lanka is to achieve
what it takes to the catalysts for But Thailand moved will be the catalysts for greater wealth. Today FDI is just 1%
be a rich country. manufacturing a wide from the production manufacturing a wide range of of the country's GDP, which
However, that is range of advanced of agricultural advanced products. contrasts with Albania where FDI is

”
not a case. By products.
the same token
Greece which has relatively little
technology and knowhow does in
fact enjoy comparative wealth.
First for Sri Lanka to achieve greater
wealth she would need to add
more letters to her portfolio under
so called "scrabble theory". Sri
Lanka would need to achieve
greater complexity in production
capability and achieve a higher
quantum of knowhow. What is
also needed is a clear
understanding of industries and
particularly acquire the ability to
moving to clusters of industries. A
country is in fact a collection of
technologies and these determine
the extent to which development
takes place.
Hausman cites the case of
products and built
new exports such as
electronics and later machinery.
Today Thailand manufactures
electronics, cars and trucks while
Ghana is still dependent on Cocoa
and manganese exports.
The case of Sri Lanka is in fact
similar. Some decades back
Vietnam and Sri Lanka were in fact
comparable in economic terms.
Sri Lanka exports today apparel, tea
and rubber. But the country faces
the challenge of finding a way to
diversify its basket of exports.
Vietnam on the other hand has
s u c c e e d e d i n c o n s i d e ra b l y
widening the number of exports
having initially started at a similar
level to Sri Lanka.
In the future Sri Lanka will produce
products such as medical
equipment particularly those
Hausmann also raised the issue of
how knowhow is a highly mobile
force in the global economy. This
mobility can take place between
firms, through immigration, by the
existence of a large overseas
diaspora, through business travel
and finally Foreign Direct
Investment.
These are factors which Sri Lanka
can in fact exploit effectively
particularly when it comes to the
overseas diaspora.
The case of China is very apparent:
there is considerable evidence that
overseas Chinese returned to China
when the Deng Xiaoping came to
power. Those overseas Chinese
brought in skill and knowhow that
jump started the new liberalized
Chinese economy. A similar
already 10% of the GDP, while in
Singapore's case it has achieved a
staggering 15% of the GDP.
It is therefore clear that there is a
strong connection between the
level of technology that a country
has succeeded in achieving and
investment inflows and wealth of
the said country.
Prof. Hausmann's lecture therefore
created awareness on the need to
create a diversified Sri Lanka
economy with a high level of
technology and knowhow.
Dilip S Samarasinghe
BA(Hons) Essex, MIA Columbia
Director (Media & Publicity)
Board of Investment of Sri Lanka
The views expressed in this articles
are personal to the writer.

17
w w w. i nv e s t s r i l a n ka . c o m
 Volume 04 - January, 2017
OBG BUSINESS BAROMETER: GCC CEO SURVEY
Business confidence upbeat despite global economic uncertainty
Middle East, October 2016: A first-
time survey of CEOs undertaken by
the global publishing, research and
consultancy firm Oxford Business
Group (OBG) suggests that business
sentiment across the GCC remains
broadly positive, despite the current
challenging economic climate.
As part of its landmark Business
Barometer: GCC CEO Survey,
produced in association with Saudi
Hollandi Bank, OBG asked 196
business leaders a comprehensive
series of questions on an
anonymous basis to gauge their
confidence levels and short-term
plans for investment. Compiled over
the past six months, the findings are
now available to view on OBG's new
Editors' Blog. The data was also used
to assess the broader economic
outlook across the region for the
coming year. OBG is now preparing
to carry out further CEO surveys
across the other regional markets in
which it operates, namely: Africa,
Asia, Latin America and the
Caribbean.
Responding directly to OBG's
questions, 52% of business leaders
surveyed said they were "likely or
18
very likely" to make a sizeable capital
investment in the coming 12
months. Just under half of all
respondents said they found gaining
access to credit "easy or very easy",
while significantly, 57% estimated
that government spending currently
drives less than 40% of business in
their respective sectors.
Andrew Jeffreys, OBG's CEO and
Editor-in-Chief, said the Group's first
CEO survey represented yet another
research milestone for the firm at a
time when investors were giving
more importance than ever before
to accurate data, compiled at source
using reliable methodology.
"While business leaders are
increasingly keen to explore the
openings that emerging markets
offer, a lack of credible intelligence
and information vacuums remain a
concern," he said. "I firmly believe
that our new CEO surveys will help
to fill this void and give investors
something they can immediately
relate to, namely, the views and
perceptions of decision-makers like
themselves obtained at ground
level."
w w w. i nv e s t s r i l a n ka . c o m
Bernd van Linder, Saudi Hollandi
Bank's managing director, said that
while the fast pace of development
throughout GCC economies was
producing plenty of opportunities
for new investment streams and the
reallocation of capital across the
sectors, it also heightened the need
for reliable data to ensure accurate
interpretation of the changes taking
place. "We therefore welcome our
association with Oxford Business
Group on this new
tool, which I'm confident will
provide local and international
business leaders with an insight into
the decisions currently being made
by their peers regionally," van Linder
said.
OBG's Managing Editor for the
Middle East Oliver Cornock added
that the GCC CEO survey had
produced some surprising results
that would be of interest to
investors.
"Despite global media reports that
the region is in a period of economic
turmoil, our GCC CEO survey results
point to a wholly more positive
outlook, with sentiment across the
Board of Investment of Sri Lanka
sectors far from weak," he said. "Of
course, there are significant
challenges. However, what can be
deduced from the results is that the
region's corporates remain broadly
positive and are positioning
themselves to be able to compete
when stronger growth returns."
Cornock's in-depth evaluation of the
survey's results can be found on
OBG's Editors' Blog, which is titled
'Next Frontier'. All four of OBG's
regional managing editors will use
the new platform to share their
expert analysis of the latest
developments taking place across
the sectors of the 35+ high-growth
markets covered by the publishing
firm's research.
The OBG Business Barometer: GCC
CEO Survey has been produced in
association with Saudi Hollandi
Bank. The surveys mark the latest
addition to the firm's extensive
portfolio of research tools. All GCC
markets were represented. The full
results of the GCC survey will be
made available online and in print.
Volume 04 - January, 2017 Board of Investment of Sri Lanka

Abans promotes Colombo City Centre:

Luxury living and lifestyle in heart of Colombo
NEXT Hotels the pride of SilverNeedle
Hospitality caters to satisfy the needs
of a business traveller and thus
embodies a customer-centric design
approach that provides greater value
in areas that matter most to its
respective guests. For those that
believe time is of the essence, NEXT
Hotel Colombo is your answer. It is
designed predominantly around your
have access to cinema’s, supermarket,
restaurants, food court, entertainment
and shopping all within the same
complex without having to step out.
The Residences at Colombo City
Centre create an excellent opportunity
for investors. Investors can expect
good capital appreciation and rental
return. They will also receive freehold
title to their apartments.

“ The mall will feature a large shopping arcade infused

with a plethora of brands both local and international,
supermarket, games and recreational activities
providing an enjoyable experience for individuals

”
as well as families alike.

(Artistic Impression)
Colombo City Centre, the majestic
mixed-use development project by
Abans Group in collaboration with
Silver Needle Hospitality is getting
ready to redefine the benchmark of
luxury in Colombo, Sri Lanka. Located
in the heart of Colombo opposite the
scenic belt of Beira Lake at Sir James
Peiris Mawatha, Colombo 02, this 47
storey mixed-use lifestyle centre
comprises of a shopping mall, luxury
comparable to the larger malls of
Dubai and Singapore, NEXT Hotel
Colombo – the flagship brand of Silver
Needle Hospitality catering to the
professional and leisure needs of
business travellers and Residencies at
Colombo City Centre bringing to Sri
Lanka what can only be perceived as
the next frontier to high-luxury living.
The mall will feature a
personal business conduct with all the
fine traits of modern urban lifestyle
that empowers guests with choice,
flexibility and control.
With its strategic location, tech-
forward facilities and sophisticated
services, Colombo City Centre will
offer the finest guest experiences
imaginable, carefully crafted for
today’s luminaries who will make this
hotel their home away from home.
Residencies at Colombo City Centre
withhold a variety of options ranging
from 2,3,4 and 5 bedroom apartments
with size variances of 973 sq to 4898
sq. The subsequent prices span from $
330,000 to $ 2 million.
In addition to the amenities provided
that fall nothing short of magnificent,
residents will also enjoy panoramic
views of the city and coastline from
this 47-storey iconic landmark.
Furthermore along with separately
demarcated parking facilities,
entrances and lifts for the mall, hotel
and residences the residents will also
be offered exclusive access to the
swimming pool, state-of-the-art gym,
sauna, barbecue area, children’s play
Colombo City Centre is a masterpiece
that combines elegance with comfort
and entertainment offering people an
experience like no other. The carefully
constructed architectural design of
this building is truly cutting edge
highlighting pure elegance with its awe
inspiring façade reflecting its beauty at
both night and day. It is geared towards
being a qualitative addition to the
vision of Sri Lanka to be positioned on
the map of flourishing tourism and
investments.
Not only does Colombo City Centre
offer a vast array of amenities such as
retail, leisure, entertainment and
luxury living under one roof it is also
conveniently located near the best
schools and hospitals in the city. Abans
Group together with Silver Needle
Hospitality bring forth their proven
competencies in retail, hospitality and
services with this iconic landmark
which will undoubtedly create both
short and long term value for all
investors.
Sri Lanka is characterised by strong
fundamentals making it one of the
most attractive investment
destinations today.
These include a vibrant diversified

apartment complex and hotel.
Colombo City Centre is a proud project
beyond the ordinary that offers
amenities adding to the quality
lifestyle of Sri Lanka.
By joining hands with Silver Needle
“
large shopping arcade Abans Group together with Silver culture, rich history, strategic
infused with a plethora Needle Hospitality bring forth their geographic location, strong stable
of brands both local proven competencies in retail, government leadership, agricultural
and international, hospitality and services with this abundance and progressive industrial
supermarket, games iconic landmark which will production. Colombo is seen as having
and recreational undoubtedly create both short and the potential to be South Asia’s hub for
activities providing an

Hospitality, Abans Group has initiated
a connection between local and
international partners, in-turn
establishing a global footprint for Sri
Lanka and bridging the gap across
borders. This mixed use development
project currently under construction is
smartly designed to accommodate a
five-storey lifestyle retail mall
long term value for all investors.
enjoyable experience
for individuals as well
as families alike. Home to the cities
trendiest dining and entertainment
options Colombo City Centre will
encompass an international food
court, restaurants and cinemas that
will redefine lifestyle, leisure and
hospitality in the nation.
”
area and a sky lounge on the 43rd floor.
Furthermore, residents do not need to
stress about entertaining themselves
or their guests with the option of
having immediate access to a hotel.
Colombo City Centre takes luxury living
to an all new level wherein residents
real estate investment and Sri Lanka in-
turn is soon growing to be the most
vibrant and sought-after destinations
around the globe.
That said, Colombo City Centre is a
project that truly marks an incredible
milestone for Abans Group assuring
the highest standards of lifestyle,
leisure and retail attractions. .

19
w w w. i nv e s t s r i l a n ka . c o m
 Volume 04 - January, 2017
BOI’s Strategy for Investment:
The United Kingdom
The United Kingdom, which is a
country that has had a long history
of close ties with Sri Lanka, is
“
also one of the country's major
sources of Foreign Direct
Investment.
British investment is Sri Lanka
represent very diverse sectors
ranging from textiles, apparel,
accessories, electronic
products, Security Printing,
tourism, infrastructure
development, IT and IT enabled
services, rubber – based
products, agriculture, food
processing and financial and
educational services.
However, though the UK has
invested considerably in the past in
Sri Lanka, in recent years British
investments have reduced in
importance. In 2015 only US$24
million worth of FDI from the UK
flowed into the island.
As of September 2016, a total of
US$20 million in FDI from the UK
was recorded this year.
Naturally a lot more can be
achieved in terms of FDI from the
UK and the BOI has identified a
number of sectors that could
generate more significant FDI
inflows into Sri Lanka.
These sectors include IT and IT
enabled services, textiles and
apparel, tourism and recreation,
Infrastructure development,
research and development,
manufacturing in sectors where
In addition Sri Lanka is a country
there is value addition, education
where English is widely spoken,
and skill development. Some of
being the language of Business and
the selling points of Sri Lanka is that
also having a legal and banking
the country offers a very conusive
systems based on those of the UK.
environment for manufacturing.
These factors contribute to making
“ Sri Lanka is a country where
English is widely spoken, being
the language of Business and
also having a legal and banking
systems based in those of the
UK. These factors contribute to
making Sri Lanka a safe and
conducive environment for
British investments.
The same goes for the tourism
industry that is currently
undergoing a rapid expansion.
There are also many opportunities
20
available in the country as Sri Lanka
has been promoting exports
Since many British products
are exported to the Middle
East, South Asia, South East
Asia and Africa the
comparative proximity of
these markets to Sri Lanka
makes the island a potentially
attractive destination for
British FDI in the
”
manufacturing sector.
through backward linkages, high
technology and value addition.
As costs of production in the UK are bilateral agreements that cover
very high, British companies may
look at alternative locations for
their industries to achieve greater
profitability.
Since many British products are
exported to the Middle East, South
Asia, South East Asia and Africa the
comparative proximity of these
markets to Sri Lanka makes the
island a potentially attractive
destination for British FDI in the
manufacturing sector.
Sri Lanka a safe
and conducive
environment for
B r i t i s h
investments.
British companies
if they set up in Sri
Lanka can in
addition access
” the Indian and
Pakistani markets
duty free under the Free Trade
Agreement that Sri Lanka has
signed with those two South Asian
countries.
w w w. i nv e s t s r i l a n ka . c o m
Areas where there is considerable
potential for FDI is the Business
Process Outsourcing as well
a s Research and
Development. British
companies can use some of
the advantages that the
island can offer such the
widespread use of English,
skilled workforce, modern
telecommunications,
infrastructure, computer
skills and other factors and
simply being ahead in time to
the UK.
It must also be added that
close relations between the
governments of Sri Lanka and the
United Kingdom have resulted in
many areas relating to investment.
British investments to Sri Lanka
enjoy protection from
nationalization. If necessary there
is a mechanism to ensure prompt
and adequate compensation.
Remittances of earnings, capital
and business fees are free and
permitted. Settlements of any
disputes can be done under the
International Convention for the
Settlement of investment Disputes
(ICSID)
Sri Lanka is also a member of the
Multinational Investment
Guarantee Agency (MIGA) which
provides safeguards against
expropriation and has commercial
risk.
Sri Lanka has also signed a double
tax agreement with the UK. A
double tax Relief Agreement
between Sri Lanka and other
countries provide reduced tax rates
on dividends, interests and
royalties.
Hence there are many reasons why
FDI from the UK to Sri Lanka could
increase in the future, considering
factors such as the strong
economic, political and cultural
links that have existed in the past.
The United Kingdom remains one of
Sri Lankan's main investors if the
FDI figure is taken as a cumulative
over the years. However in recent
years the FDI inflows from the UK
have not grown, hence there is a
pressing need on the part of the BOI
to actively promote Sri Lanka in the
UK in the future.
Board of Investment of Sri Lanka
Leading British
companies operating
in Sri Lanka
IT /IT enabled services (BPO)
· HSBC Electronic Data
Processing Lanka Pvt
Ltd

· L S E G Business Services
Colombo (Pvt) Ltd/
London Stock Exchange
Textile Garments and
Accessories
· Linea Aqua (Pvt) Ltd -
Speedo International
· Oxley Threads
· Marks & Spencer
· Claudia International
Lanka (Pvt) Ltd
· Coats Thread Exports
(Pvt) Ltd
· Britannia Garment
Packaging (Pvt) Ltd
· Linea Aqua (Pvt) Ltd



· Next Manufacturing
(Pvt) Ltd
· Spencer Denim
Industries (Pvt) Ltd
· Christy Leema (Pvt) Ltd
· Thomas Kershaw Lanka
(Pvt) Ltd
· Wacoal Timex (Pvt) Ltd
· Rose Mill Fibre Grinders
(Pvt) Ltd
Security printing
· De La Rue Lanka
Currency & Security
Printing (Pvt) Ltd
Higher Education
· Northshore College of
Business & Technology
(Pvt) Ltd
Air cargo pallet nets
· AMsafe Brid Port (Pvt)
Ltd
Nilupul De Silva
Director (Promotion)
Dilip S Samarasinghe
Director (Media & Publicity)
Volume 04 - January, 2017
Apparel Exporters’ Association upbeat
on GSP+, more FTAs
Felix A Fernando, Director,
Omega Line Ltd was appointed
as the new Chairman of the Sri
L a n ka A p p a re l E x p o r te rs
Association (SLAEA) at its
Annual General Meeting, held
at Jaic Hilton Residency,
Colombo.
Rehan Lakhani and Azeez Rumi
were appointed as the new Vice
Chairman and Treasurer.
Fernando, the new Chairman of
SLAEA pledged his best support
to the industry, together with
the executive committee and
the council. He expressed
gratitude to his predecessor,
Saifuddin Jafferjee for an
outstanding job done in the last
two years.
New Chairman's speech
revolved around the
importance of apparel industry
to the economy of the country
and the state of the global
apparel industry today. He said,
the export of textile and apparel
accounted for 46% of the total
exports, and it accounts for 6%
of the GDP of the country.
“Income from the Apparel
Industry is the second largest
source of foreign exchange.
Apparel industry also accounts
for nearly one million direct and
indirect employments out of a
total labour force of 8.3 million.
In other words, 12.5% of the
country's total labour force is
employed in the apparel
industry, and it is equivalent to
46% of the total employment in
the industrial sector”, said
Fernando.
He added, “Although it was
disheartening to digest the
current economic realities and
the state of world economy and
our own economy, we value the
current government's desire to
achieve a sustainable
development through export
led growth with globally
connected value chains. The
Prime Minister, in his recent
Economic Statement
acknowledged the importance
and hoped for the revival of the
industry with the restoration of
the GSP+.”
“Our position is that the
restoration of GSP+ will give
some room to breathe and
consolidate the industry. The
GSP+ benefit we will enjoy for
the next 3 or 4 years, can be
used to accomplish many other
medium and long term goals,
which will not only be beneficial
to the apparel, but to boost all
the exports from our country.
We have already made a
commitment to the
government authorities to
increase our exports to the EU
by US$ 500 million annually
once the GSP+ is restored.
If the proposed FTA with China
can be successfully concluded,
w w w. i nv e s t s r i l a n ka . c o m
we will have a great opportunity
to expand our market in China.
The same cannot be said
however about the proposed
FTA with India. It is necessary to
remove the quota in its totality
in respect of the apparel sector,
if our industry to see a
significant benefit from the
proposed ETCA.
We must enter into more FTAs
with few other countries
including Japan, Russia, Korea,
Brazil, and South Africa. Sri
Lanka must also seriously
consider negotiating a trade
agreement with the EU, since
the GSP+ can be enjoyed for a
maximum of 4-5 years at most.
We thank the Hon Minister of
Finance for the 75% rebate
proposed for the additional
profits from exports, as a result
of government's drive to
encourage and increase the
country's exports. Regrettably,
the government has abolished
the SVAT scheme, which was a
hassle free system for the
ex p o r te rs . W h i l e
acknowledging the
government's aspiration to
collect the taxes due on time,
we urge the Finance Ministry to
take due care in ensuring that
refunds will be made on time.
We are of the view, until the
RAMIS system is fully tested and
implemented, SVAT scheme
need to be continued.
We need to re-visit the system
of holidays. We do not propose
to reduce the number of
holidays, but to rationalise them
to avoid holidays in the middle
of a week. We all need to find
and diversify into new markets
for exports.
Board of Investment of Sri Lanka
Considering the reputation Sri
Lanka has for its quality, and our
inability to compete on the low
end value products which are
made in neighboring South
Asian countries, we must
increase the production of
higher value added products,
such as formal wear and high-
end outerwear.
Few major players are investing
in automation, but largely the
use of automation in the
industry is lacking. This will
become even a critical factor in
time to come, when one
considers the lack of labor
supply in the country.
Labor turnover is on the
increase compared to a decade
ago. Female workers who quit
the industry are more than the
new entrants to the industry.
We humbly request from the
media to help elevate social
status of the female factory
worker in the society.
Our country has reasonably
good training facilities including
University of Moratuwa, Sri
Lanka Institute of Apparel &
Apparel (SLITA) and few other
private sector institutions. Our
industry must fully utilize the
training resources available for
us”, said Felix A. Fernando.
The out-going Chairman,
Saifuddin Jafferjee said they are
very disturbed by the proposal
to abolish the SVAT scheme
which is currently functioning
smoothly. Prior to SVAT scheme
VAT refunds were the no one
pain point for every exporter
and we see no merit to make
any changes to a scheme that is
functioning well”.
21
 Volume 04 - January, 2017
Ivory box made in Sri Lanka for King of Portugal
Sri Lanka is essentially an island and
is advantaged by having an
excellent location at the crossroads
of many of the international sea –
lanes. In the Indian
ocean few countries
can boast of a better
location, close to some
of the fastest growing
countries in Asia, the
world's economic
“ It is necessary to really see
Sri Lanka not in isolation but
as part of a highly complex
power house and to
trading system connecting
other regions such as countries and cities in Asia
the Persian Gulf, Africa
and Oceania.
and beyond.
This idea of being a hub
has always been deeply ingrained
in the psyche of the Sri Lankan
people and has indeed shaped the
island's history and its world view.
OF HUBS, PORT CITIES AND THE EXCHANGE OF IDEAS
In today's global context, many
outside observers see the Sri
Lankan population as being very
cosmopolitan, adaptable, tolerant,
and capable of absorbing concepts
and ideas from many parts of the
world - a truly globalized people.
Historically, this openness to the
outside world had resulted in
considerable wealth from trade
with the region and beyond. There
is considerable evidence from the
discovery of ancient Chinese
porcelain, from coins and other
objects and the accounts of foreign
travellers such as Pliny, Ptolemy, Fa
Hien, Ibn Battuta and Marco Polo
that the island interacted
commercially with Ancient Greece,
Imperial Rome, the Arab caliphates,
imperial China and Sassanian
Persia.
The large quantity of these objects
has led many observers to theorize
that Sri Lanka was in fact an
entrepot for trade with much of the
ancient world. As a trading nation
Sri Lanka enjoyed considerable
wealth which is visible in the form
of stupas barely less tall than the
great pyramids of Egypt, gigantic
irrigation tanks and palaces which
were no doubt built with the
earnings from the exports of in
spices, gems, ivory, elephants,
peacocks and even steel.
However to understand this wealth
it is necessary to really see Sri
22
Lanka not in isolation but as part of Europeans were actively engaged
a highly complex trading system in exchanging goods through trade.
connecting countries and cities in However the exhibition focuses not
Asia and beyond. just on the trade of goods but also
exa m i n e s t h e exc h a n g e o f
knowhow and ideas. It would be
correct to say that the Port Cities
were among the first megapolises.
One characteristic of the port cities
were the emergence of
populations of mixed ethnicity with
very distinctive hybrid cultures,
cosmopolitan ideas and also what
”
could be considered a global world
view.
In many ways there are modern
parallels as we currently seek to The port cities of Asia had an
develop the country as a logistics ancient history but they would
hub and to connect it successfully undergo major upheavals with the
to the global supply chain. emergence in Asia of the western
This idea of a regional trading maritime powers: the Portuguese
community connecting countries and Spanish followed by the Dutch
and resulting in the sharing of and the British.
knowhow, technology
and indeed of ideas is From being on
the subject of a very the periphery
fine exhibition that this
writer was privileged to
view at the Museum of
Asian Civilizations in
“ What make these
cities distinctive are
not just their location
of the trading
s ystem and
essentially
traders seeking
to bring back to
Singapore. which is highly
The exhibition which is strategic but also their sEurope pices and
rare
titled “Port Cities” wealth, their very o t h e r
deals with the cosmopolitan culture treasures, the
emergence of trading European
hubs in the Asian and non typical powers would
”
Region. environment. t h r o u g h
m i l i t a r y
The cities in question technology
include not just Temasek, (the old and a ruthless exploitation of local
name for Singapore) but also a divisions, emerge as the key
number of cities dotted throughout players in the trading systems,
Asia such as the booming Chinese through colonialism.
port city of Xiamen, which this
writer also visited recently, and In spite of this they would still have
linked together through an to contend with the elephant in the
extensive and highly developed room, Asia's oldest culture and
web of international trade. leading power, Imperial China.
What make these cities distinctive Interestingly in those times, like
are not just their location which is today, the Middle Kingdom was the
highly strategic but also their center of production of consumer
wealth, their very cosmopolitan goods and was undoubtedly the
culture and non typical cornerstone of the trading system.
environment. These goods such as silk, porcelain
and tea were traded to the known
Ethnically speaking they are world through Asia's port cities.
booming markets that act as Only China seemed capable of
gathering points where Chinese, meeting the growing demand.
Malays, Indians, Arabs and later
w w w. i nv e s t s r i l a n ka . c o m
Board of Investment of Sri Lanka
Porcelain bowl
made in China
for Persia
In fact Imperial China even
produced goods aimed at different,
distinctive markets. There were
porcelain goods with western
designs that went to Europe, while
others with Arabic calligraphic
inscriptions were shipped to Asia's
other global power, the Ottoman
Empire, and porcelain with Persian
miniatures found their way to the
Savafid Empire.
This was proof of the existence of a
highly sophisticated market but
also of one where the products
reflected the fusion of different
cultures.
This rich mixing of style and
cultures was not restricted to
products from China. One exhibit of
interest to the readership of this
magazine is an exquisite carved
ivory chest, made by Sinhalese
craftsmen but in a European,
Christian style. The object, which
was part of the exhibition, had
been the personal property of the
King of Portugal.
Hence it would be correct to say
that many of the ideas which we
have about developing Sri Lanka
into an economic hub, of
strengthening her links to the
leading markets of the world
through a comprehensive network
of Free Trade Agreements or even
for that matter China's ambitious
One Belt One Road Strategic
initiatives to integrate Asia, Africa,
the middle East and Europe in a
modern day silk route, have historic
origins that go back to very early
times when port cities acted as
meeting points for many cultures
which traded in spices, tea and
porcelain and exchanged know
how and ideas.
Dilip S Samarasinghe
BA(Hons) Essex, MIA Columbia
Director (Media & Publicity)
Board of Investment of Sri Lanka
The views expressed in this articles
are personal to the writer.
Volume 04 - January, 2017
THE ROLE PLAYED BY THE BOI IN THE LIVES
OF THE FEMALE ZONE WORKERS
"The hand that rocks the cradle, Rocks the
World" such is the importance of the
female in society. In the BOI Zones too the
female workers are considered hard
working and indispensable. The BOI is a
main contributor to the economy. And in
this economic contribution the total female
workforce is around 52%. The main issue
faced by many factories inside the Zones, is
to find suitable female labour. There are
around 7,114 vacancies in factories which
remain un filled.
What this article is mainly focused on is to
investigate the problems that these female
workers face. Social and Economic changes
took place in early 80's with the
introduction of the open economy. Many
“
The factories too have changed
their outlook. Social problems
are tackled by Human Resource
Development programmes.
garment factories were established due to
the export oriented economy. Society then
began to label these females as "garment
workers". Their hard work dedication and
consciousness has given much to the
enterprises and to the economy of this
country.
When young girls move away from their
homes and are surrounded by a new
strange world, the problems are new. It's
difficult to adjust and comprehend the city
live style. With passing of time,
globalization and new exposure to the
rapidly growing world brought new issues
to the lives of the zone female workers. The
factories too have changed their outlook.
Social problems are tackled by Human
Resource Development programmes. The
factory worker is considered unique each
different from the other. Orientation, social
awareness programmes, physical training
programmes are necessary for the workers
to acquaint into the new surroundings.
Many non-governmental organizations
have taken the lead role, BOI too has hosted
many educative training and awareness
programmes. It's that these workers have
little knowledge of the society, having to
fend for themselves, and also to help their
families with their income is also another
reason, to try and search for easy money.
Unaware of precautionary measures and
being lured into illegal relationships make
these factory workers young mothers.
Many cases of strangling infants dumping
the unwanted babies into ditches,
adopting dangerous methods to kill the
fetus are some of the unfortunate
happenings in the Zone workers lives.
The so-called "garment worker concept"
has to be changed. Society should
understand the economic contribution
made by these workers. Their intelligence
skill and ability to work and meet the
international standards has to be admired
and accepted. The Department of labour
and other institutions which care and look
into the benefits of these employees have
to be more vibrant to make changes and
productive in the lives of these female
employees.
The factors that contribute to the building
of the lives of these factory workers are the
social, economic and cultural background.
In the Zones the factories have been
constructed and also requested to meet
International Standards. The BOI has been
instrumental in driving the factory
management to train and educate their
workers. There are cases with special
emphasis to the female employees in the
SEPZ, who are from the Estate Back ground.
Their educational knowledge, inability to
speak in Sinhala and English sometimes
becomes a problem, when looking for
employment.
Social issues
The female workers direct from their
homes are exposed to the new society and
culture, find it difficult to adopt. They are
unaware of the society, the new pattern of
living, and at times become prey to
vultures. It has been found that some of
these workers engage in unwanted
activities. That's because
they are driven into
antisocial activities. There
are BOI factories which
provide boarding houses to
their female employees.
So as to protect them and
ensure their safety. The
media too at times
”
becomes over active when
they become aware of
some news relating to the
lives of these workers. Society should
understand the needs of these poor,
innocent workers. Their physiological
needs, their expectations and
disappointments. The Industrial Relations
Department has been very active in
organizing image building programmes.
Many Government Organizations involve
with the BOI to arrange programmes for the
Female Workers on World Women's Day.
The Labour Department provides the
guidance required for the BOI and the
factories to hold seminars and programmes
on women. In the Zones the workers prefer
"white color jobs" and feel it's more
prestigious. The SEPZ female work Force is
predominately from the Ratnapura,
Nuwara Eliya and Kegalle Districts. These
Districts depend most on the plantation
sector. To up lift the lives of these
employees the Government has taken and
provided the opportunity through the
Zone. When providing employment its
these three regions that are considered on
p r i o r i t y. Through friends and
acquaintances girls find employment in
factories. Once they get into the zone
depending on the popularity, benefits and
“
Coming from homes
that are unsettled,
children left in the
care of other, husbands
addicted to liquor,
smoking drugs etc.,
are social problems
that need to be handled
”
carefully.
opportunities available in the factories they
move from factory to factory, seeking green
pastures.
As any one of us the inability to adjust to the
new surrounding is a major factor that
contributes for worker shortages in
factories. "Man is a social animal".
Therefore, having to build new friendships,
break away from the usual and convenient
practices etc., makes live for these girls a bit
hard. Most of the factories today provide
boarding facilities to their staff. The
working atmosphere is made conducive by
providing the essential necessities.
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Other predominates factor that needs
attention is to tackle the personal problems
these workers are saddled with. Coming
from homes that are unsettled, children left
in the care of other, husbands addicted to
liquor, smoking drugs etc., are social
problems that need to be handled carefully.
The female worker should have a collected
and peaceful mind set to work.
Many Women's Organizations, Ministry of
Labour, Health Department, the Sri Lanka
Police, Women's Bureau involve with the
BOI to conduct awareness programmes.
Today some of the Political parties are
trying to use these workers and draw them
into protest and rallies. This has been
observed in the recent past. But the BOI
always seeks to ensure the peace in the
working environment. The Industrial
Relations Department is very active in
mediating on behalf of the workers to the
management of the factories. Generally
any worker representative body is
permitted to function in the factories. It's
said "prevention is better than cure" . So
before any unforeseen thing happens, the
BOI intervenes in preventing major
calamity. Due to political intervention a
tragic happening took place, leading to the
death of an employee in one of the zones.
Benefits of the workers
Sri Lankan female work force is considered
well educated, and intelligent to
comprehend and practice any new
technological practices. In comparison to
the other countries in the region we are far
ahead. Even though labour is cheap in
countries like Vietnam and Bangladesh our
work force is far superior. We should
always ensure that we keep up this
standard. To reach our expectation and
meet "sustainable development" goals, the
work place Environment, and workers
needs have to be looked after. The
Industrial Relations Department
concentrates on keeping these female
workers aware of the social draw backs they
face in an alien environment. Having met
and mingled with these female factory
workers at SEPZ its felt that society should
be very concious of their problems. The
workers are sometimes straight after
school when they find their new
surroundings alien, life pattern, food
pattern cultural change makes these
workers feel a bit displaced in coordinating
w i t h t h e e n t e r p r i s e s t o p ro v i d e
opportunities for the workers. Working in
the SEPZ has provided me with the
opportunity to meet with investors, service
seekers, service providers, last not least
with the massive female workforce. The
BOI Industrial Relations Department has
been instrumental in building deep rooted
bonds between the investor community
and the employees. Training Programmes,
Health Education seminars, competitions,
Board of Investment of Sri Lanka
s p o r t s a n d va r i o u s o t h e r ca re e r
development programmes have been
organized through the BOI and the Labour
Department collectively.
The mutual understanding between the
BOI and the Labour Department has also
been a contributory factor towards the
worker related Environment becoming
conducive. The instructions and advice
conveyed to the BOI Industrial Relation
Departments are followed by the factories
to ensure that the workers receive their
share of Benefit. In order to reach the
sustainable Development goals of the
nation, the work place and workers need
more care and attention. As its their man
power and hard work that contributes
towards the Economic development of the
nation. To make any institution or work
place to become profitable the working
Environment should be pleasant and
peaceful. In case the workers are
dissatisfied, subject to harassment
unhappy with the Management if they do
not have their basic necessities looked aft
the entire work place is in chaos. The BOI
has always been instrumental in
maintaining the peace within the zones and
have also ensured that the employees
interests are being safeguarded and
protected.
Concerns of BOI
The BOI with special focus on the IR
Department is to see that the production,
manufacture of the factories should always
ensure proper health standards. According
to labour regulation, and the World Health
Organization there are certain
manufacturing activities, chemicals and
raw materials unhygienic and dangerous.
Withholding the fact that profit is the
ultimate good of the employers should not
forget, that health and safety of these
workers. Today in most factories its difficult
to find males to work. As they prefer to
engage in small business, drive three wheel
or do some other office job. As they feel its
more acceptable to society. Therefore, in
most of the factories today specially in the
zones females are engaged in jobs. So we
should always be very careful, in the safety,
and hygienic conditions. Therefore, is extra
cautions on the types of industries that are
being permitted, to be set up inside the
industrial zones and elsewhere.
Projects that involve chemicals, lead, metal
and dangerous processes are well
screened, prior to approving. The
Environment and Monitoring Departments
play an important role, by carrying out
periodical inspections, to keep the required
standards.
Its happy to say that BOI does not only limit
itself by having events on 8th of March on
"Women's Day", but does continue its work
right throughout the year. Daily educating
ourselves, observing best practices,
globally and being practical and pragmatic
is how we in the zones work towards
achieving the goals. In any society or
community whether developed or
developing, issues and problems are bound
to be there. Understanding Humanity,
Social Background of the workers,
Environment, work place background,
living conditions, working conditions and
psychology needs of the worker, are the key
issues that needs attention to ensure a
better future for the female worker and
humanity.
Mrs. Yasodhara Bogamuwa
Senior Deputy Director (SEPZ)
23
 Volume 04
03 - January,
August, 2016
2017
EVALUATING WATER AS A STRATEGIC RESOURCE
In recent years there has been a
growing interest in survival by humans
in hostile environments. A number of
television series have focused on
studying the extent to which a person
can prevail in a wild environment. The
key to survival is really about securing
successfully the basics requirements
for life, namely shelter, fire, water and
food, in that order of importance.
However it can be argued that water is
probably the most important of the
four. A person can live about 10 days
without eating, but will die within 3
days if he or she fails to secure a supply
of fresh drinking water.
In fact, we need to consider that
humans essentially consist of water
since it constitutes about 70% of our
bodies and about 90% of our brains.
Water therefore holds the key to our
life in the planet and if food security,
the subject covered by this writer in the
past issue of this newsletter, is indeed
important then achieving water
security is even more so.
This last point was well understood by
ancient and medieval Sinhalese rulers
whose entire rule was based on
achieving mastery over water through
the construction of irrigation Tanks.
King Parakkramabahu I had even said
that no drop of water should flow to the
sea without first contributing to the
well-being of his subjects.
In more recent times projects like the
Mahaweli have helped considerably Sri
Lanka boost her agricultural
production from irrigation, and her
energy needs through hydroelectric
power.
But today looking at the issue
internationally would underscore the
fact that there is a lot of concern about
achieving water security. Many
countries around the world fear that
they may face a situation where ground
water resources would be depleted.
There is also a concern that this
valuable resource cannot be easily
restored, if at all. Hence the prospect
of some countries not having a regular
source of potable water is a very real
one.
The problem does not just affect the
24
countries of the Horn of Africa or the
Sahel but also some of the Desert
States of the USA.
Furthermore, studies have been
conducted on how countries have used
this precious resource in a highly
ineffective manner. It is in fact
estimated that the vast bulk of water
consumed, a staggering 70%, goes into
agricultural production.
In fact what many people do not realize
is that everything they eat and drink
“
It is also important to take stock
of the fact that these industries
are precisely those which use
vast quantities of water just as
Sri Lanka's current main exports
”
sector, namely apparel.
needs to be produced by using vast
quantities of water. In developed
countries where meat consumption is
very high, it is estimated that 4,500
litres of water are needed to produce a
250 gram beef steak.
Currently Sri Lanka is looking at
developing high end industries such as
pharmaceutical and rubber products
which will result in economic
expansion as they will boost exports
and also reduce imports. But it is also
important to take stock of the fact that
these industries are precisely those
which use vast quantities of water just
as Sri Lanka's current main exports
sector, namely apparel. It takes 6,800
litres of water to produce 1 pair of blue
jeans. To grow the cotton for a simple
T-Shirt, 1,500 litres of water are
required.
T h e m a n u fa c t u r e o f a s i n g l e
automobile is estimated to use 117,000
Litres of water. Each tire needed for
this car will utilize 1,900 Litres of water
in the process of production.
Given the total dependence on this
valuable resource, governments all
around the world and other
institutions are working at ways to
rationalize the use of water.
w w w. i nv e s t s r i l a n ka . c o m
The challenge they often face is that
the global economy is market driven,
hence it becomes difficult for
authorities to shape production, which
means that they often have a limited
capability to rationalize the use of
water.
Crops are grown because there is a
demand for them in local and
international markets.
Nevertheless Governments can indeed
look at ways of saving water by
identifying for
production crops that
use comparatively little
water.
Recycling of water is
also high on the
agenda. A lot of
research in this field
has been done in Israel,
an arid country that
has achieved the
capacity of recycling
80% of its water.
Israel has made significant
breakthroughs in this area including in
the use of sand as a bio active filter,
which waste water passes through.
A new focus is on the need to use water
efficiently. There is a realization that
flood irrigation which is used all around
the world, results in loss of about 15 –
20% of the water, due to wind and
radiation. Lack of planning has caused
a loss of a valuable resource.
Desalination plants have often been
shown as the solution to the problem
of water shortage. However they are
yet another Sword of Damocles
hanging over our heads since they cost
hundreds of millions of dollars to build
and also burn vast quantities of fossil
fuel.
One solution put forward to address
some of the issues is the so called
“toilet to tap” technology. This is
essentially to take the waste water and
treat it so that it becomes pure H2O.
This is what Singapore and many parts
of California have already achieved.
They have successfully recycled “black
water” for the purpose of drinking.
Board of Investment of Sri Lanka
It is interesting to look at new solutions
p ro p o s e d to d e a l w i t h wate r
conservation. One solution that has
been put forward is to have two
separate pipes to bring in water into
the home and two to send the water
out.
The water in one pipe will be used for
the toilets and the other for everything
else such as cooking, drinking and
washing. The water sent out will
consist of black water (toilets) and grey
water (the rest). The water sent out
will be used for specific purposes.
The grey water can be used for non-
potable purposes such as cooling
power plants. The vast quantity of the
waste water could meet the needs of
massive power plants required to
address future energy needs.
Black water is already used and the
carbon food waste is often made into
bio diesel.
There have also been research into the
field of nutrient recovery from waste
water. The nutrients from black water
have already been used in some
countries to grow crops. Hence there
are new opportunities that can be
tapped and the recycling of this waste
has generated considerable interest in
the area of urban farming, where crops
could be grown within cities, in
buildings where natural conditions
would be simulated.
Hence there should be much more
awareness on the part of all
stakeholders of the fact that water
resources need to be carefully
preserved and that solutions to utilize
this precious resource in a planned and
efficient way will determine our long
term success in our quest to develop
economically or simply survive.
Dilip S Samarasinghe
BA(Hons) Essex, MIA Columbia
Director (Media & Publicity)
Board of Investment of Sri Lanka
The views expressed in this article are
personal to the writer.
Volume 04 - January, 2017 Board of Investment of Sri Lanka

BOI Staff News

Lecture on “Reconciling harmonious Christmas Celebrations

existence and aesthetic pursuits”
At Head Office

The Association of the Executives of the Board of Investment of Sri Lanka has initiated to
hold a comprehensive lecture series by selected distinguished guest lecturers, with the
objective of enhancing knowledge of BOI employees on diverse areas applicable to day to
day life and work.

The first lecture of the series was conducted by Dr Jayalath Manoratne, the renowned At KEPZ
artist, actor and academic who covered the topic of “Reconciling harmonious existence The BOI Staff at
and aesthetic pursuits” on 18th November 2016 at the BOI auditorium at the World Trade KEPZ Office
In-house aesthetic talents
Centre. Dr Manoratne's lecture was very well received and generated considerable interest
among the BOI staff.
conducted a
constructive
C h r i st m a s
Celebration Event
BOI wins two prestige awards on 21st December
, 2016 from 16.00
hrs. to 24.00 hrs.
to KEPZ for the
first time in
collaboration
w i t h t h e
Manufactures
and FTZMA at
KEPZ under the
guidance of Mr.
M K D Lawrance –
Director-(KEPZ).
A Charity Event
also donating dry
BOI won two prestige Awards at the Social dialog & workplace Co-operation award ceremony rations and other
conducted by the Ministry of Labour and Trade Union Relations. Katunayaka Export Processing Zone essential Items to
won the Gold Award for the Service Sector large Scale category. Seethawaka Export Processing S t . A n n s '
Zone won the Gold Award for the Service sector medium Scale category. O r p h a n a ge at
Demanhandiya ,
Katana and some

In Search of Paradise:
A glimpse from the mythical history to the reality
Contract Workers
who live in
poverty had been
organized with
the financial
of Bandaranayake assassination contributions of
the BOI and
Employees of BOI
at KEPZ for the
consecutive 25th
year.
Sixteen Groups of
Employees
representing the
Enterprises at KEPZ participated in the Carol Singing Contest with a
glamorous style. This Event highly showcased the talents of the
Employees at KEPZ Enterprises and enhanced the industrial harmony of
the Zone whilst sharing the Christmas Message among the Zonal
Community. The Groups of Employees of M/s. Flintec Transduces Ltd. ,
M/s. Next Manufacturing (Pvt.) Ltd. and M/s. Noratel Intl. (Pvt.) Ltd. ,
M/s. Isabella (Pvt.) Ltd. and M/s. ATG Ceylon (Pvt.) Ltd won the First ,
Second , Third , Forth and Fifth Place respectively in the Carol Singing
Contest which was judged by Rev. Fr. Shivantha Wass OMI ( English &
The veteran film maker Dharmasiri Bandaranayake's latest documentary film “IN Music Teacher at St. Josephs' Seminary , Kohuwala ) , Mr. Anton
SEARCH OF PARADISE” was screened at the BOI auditorium recently. The Ruwantha ( Music Teacher at St. Peters' College , Gampaha) and famous
documentary chronicles the turbulent Sri Lankan socio-political history, Musician , Mr. Prasanna Rosa.
culminating in the first ever politically-motivated assassination, the assassination of Mr. Duminda Ariyasinghe , the Director General of BOI, graced this
the Prime Minister S W R D Bandaranayake. occasion as the Chief Guest.
This film show was organized by the Association of Executives of BOI

w w w. i nv e s t s r i l a n ka . c o m
Designed by Chanaka Kumanayaka - BOI (Meadia & Publicity)