BOI attracts FDI deals worth US $ 1.6bn in year 2015
As a result of the introduction of new procedures aimed at improving facilitation, the Board of Investments (BOI) has succeeded in attracting a number of important projects in key sectors of investment to the tune of US $ 1.6 billion in value, the country’s apex investment promotion body said.
“Once these investments are realized, a total of 66 new projects and 45 expansions of existing projects will be operational, resulting in an estimated US$ 1.6 billion foreign direct investment (FDI) inflow and generating an estimated 16,075 new employment opportunities,” the statement said.
According to BOI, these projects reflect growing investor confidence in Sri Lanka under the present management of the BOI which has introduced new methods to fast track investment including a one-stopshop”.
Among the agreements signed in 2015 were a number of projects which would positively impact Sri Lanka’s economy.
BOI signed three agreements with Dialog Axiataplc, Dialog Broadband Networks (Pvt) Ltd and Dialog Television (Pvt) Ltd for a total investment of US$ 175 million. This new investment brings the total investment by Dialog Axiata to US$ 1.96 billion.
Another very significant agreement signed by the BOI in 2015 was with Senok Automobile (Pvt) Ltd, to assemble Volkswagen automobiles in Sri Lanka. This investment which is worth US$ 26.5 million brings Sri Lanka into the age of automobile manufacturing.
The project signed for the revival of Kantale Sugar with M G Sugar Lanka (Pvt) Ltd was another important agreement BOI entered into.
This was a 30-year project agreement run on built, operated and transfer (BOT) basis between the Government of Sri Lanka (51 percent shareholding) and the foreign investor (49 percent shareholding).
This investment is from Singapore and will result in creating 1,220 new job opportunities. The estimated value of the investment is US$ 100 million
Other very significant agreements entered into in 2015 include Airport Express Air & Rail Co (Pvt) for an urban township development project that will link Colombo to Katunayake. This is a full foreign investment with participation from Malaysia, Portugal and Denmark.
As the inflow of tourists to Sri Lanka grows, there will also be a corresponding growth in investment in the tourism and leisure sector. One such project is the joint venture between Sri Lankan and Chinese companies to build a 176room tourist hotel in Panadura. The estimated value of the project is US$ 20 million. Jie Zhone Jie Lanka Developing Construction Engineering (Pvt) Ltd signed an agreement with BOI regarding this project. There are several other agreements relating to tourism and leisure sector that have been signed during 2015.
BOI has also signed an agreement with enterprises in sectors such as hub operation activities to undertake offshore business and entrepot trading, one of the new investment segments that Sri Lanka is actively promoting.
Furthermore Laugfs Pharmaceutical (Pvt) Ltd which is a local company has signed an agreement with BOI to manufacture pharmaceuticals. The estimated value of the project is US$30.5 million. This sector is of strategic importance to the country as most pharmaceuticals are currently imported.
A very high profile project in the future will be the high rise mixed development construction project by Shreepati Edifice. The estimated value of this project is US$ 330 million.
Another important project is Orion Towers Ltd that will lead to the construction of mixed development project in Colombo. The estimated value is US$ 42.7 million.
Greener Water Ltd has entered into an agreement with BOI to build a 5 star hotel with 380 rooms in Negombo. The estimated value of the investment is US$ 60 million.