Sri Lanka's BOI signs 16 agreements for first 2 months of 2016

Apr 01, 2016 (LBO) – The Board of Investment of Sri Lanka has signed 16 new project agreements for the first two months of this year.

The said agreements represent a cumulative future investment of 110 million US dollars, the BOI said in a statement.

The investment office further said these projects will be generating an estimated 1,250 new direct employment opportunities.

As per the BOI statement, these projects cover a wide range of sectors as outlined below.

Mini Hydro Power projects boost energy capacity

A key area of investment is in power generation as it enhances the capacity of the country. Five new agreements have been signed in January / February 2016 to set up Mini Hydro power projects in Ratnapura, Haldummulla, Matale and Hali Ela area. The total value of these investments is US$ 18 Million. The electricity generated by these Mini power Plants will be supplied to the National Grid which helps to meet the growing electricity demand in the country. Euro Lanka Energies (Pvt) Ltd, Meunex Nahalwathura Hydropower (Pvt) Ltd, Lower Lemastota Hydropower (Pvt) Ltd, Escas Digital (Pvt) Ltd and Bambarapana Hydropower (Pvt) Ltd have obtained BOI investment approvals for Mini Hydro power plant projects.

New Hotel projects for a rapidly growing industry

Tourism is an industry that is experiencing a rapid growth; hence new projects in tourism strengthen a sector where Sri Lanka already has a strong competitive advantage. Wild Coast Lodge (Pvt) Ltd signed agreement to set up a 28 roomed boutique hotel in Palatupana, Yala. Dodunduwa Watta (Pvt) Ltd signed agreement to set up 64 roomed hotel in Palalla, Weligama. These two new hotel projects will help the Government to achieve its target to build 75,000 rooms to cater to 4 million tourist arrivals by 2020.

New apartment complexes boost Colombo’s housing capacity

As Colombo develops further the demand for apartments will correspondingly increase. Hence two agreements have been signed to set up new apartment complexes. Both Superlative Properties (Pvt) Ltd and Mulberry Holdings (Pvt) Ltd will set up new housing complexes in Colombo. The estimated value of investment is US$ 14 Million. 

Garment manufacturing projects

The textile and garment sector is a strategic industry that contributes US$ 4 billion in exports (approximately 38% of total exports) and provides 276,000 direct employment opportunities. The garment sector remains a vital sector of the economy.

New Verazo Apparel Export (Pvt) Ltd and I C Collection (Pvt) Ltd will set up projects to manufacture garments for export markets in Bandarawela and Jaffna accordingly. The value of these investments is US$ 6 Million and they will create 263 new direct job opportunities.

A diversified economic base

The remaining projects that were signed in January and February 2016 represent diversified sectors as follows;

New Silkroad Aquatic Company (Pvt) Ltd signed an agreement to set up a project to manufacture fish meal for export market. This project will be set up in Mannar.

Unfield Integrated Services (Pvt) Ltd signed agreement to set up a project to manufacture metal based electrical components using imported coils and steel sheets for the export market. The project will be set up in Seeduwa.

J R Holdings Lanka (Pvt) Ltd signed an agreement to set up a Mixed Development project in Kottawa.

Horizon Knowledge City Ltd will set up a Higher Education Institute in Malabe. This institute will conduct Degree programmes in various fields with International affiliated Universities.

Celogen Lanka (Pvt) Ltd signed agreement to set up a project to manufacture Pharmaceutical products for the local market. This manufacturing facility will be set up in the Kandy Export Processing Zone.