volume 04 - january, 2017 board of investment of sri … lanka's strategy for investment : the...

Published by Media Department - Board of Investment of Sri LankaThe InvestorSRI LANKA

BOI

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B o a r d o f I n v e s t m e n t o f S r i L a n k a

B o a r d o f I n v e s t m e n t o f S r i L a n k aVolume 04 - January, 2017

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.

A colourful welcome c e r e m o n y w a s 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

Minister’s Office on the red carpet. Both sides of that route were also decorated with the national flags of both countries conveying the longstanding friendship between Sri Lanka and Malaysia.

Malaysia to explore new investment opportunities in Sri Lanka – Malaysian PMSri Lanka and Malaysia signed five agreements

Page 04

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

Asia will bail out the world, if it is allowed to frame the rulesNew 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

(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

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

Apparel Exporters’ Association upbeat on GSP+, more FTAs

Sri Lanka's Strategy for Investment :The United Kingdom

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THE IMPORTANCE OF TECHNOLOGY AND KNOWHOW IN ECONOMIC DEVELOPMENT

- GUEST LECTURE BY PROF. RICARDO HAUSMANN HARVARD KENNEDY SCHOOL OF GOVERNMENT

Prime Minister opens $50 m gloves exportfactory in Koggala

PM and President Xi talk investment in Davos

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

- Discuss Chinese-funded investment projects in SL and future plans - Meets with AIIB President; invites Nobel Laureate Prof. Joseph Stigilitz

SL will integrate trade in Asian region: PM

EU-SRI LANKA INVESTOR DIALOGUE TO BOOST TRADE AND INVESTMENTFROM EUROPE

Sri Lanka-ChinaIndustrial Zone is catalyst to investment

Editorial

Contact Details

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 st21 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

quality, capable of satisfying the most

discerning of customers in markets worldwide.

So we therefore need to look at the fact that

today we have the capacity of emulating the

quality of the past and can do the same if we

really we put our minds to that end. Hence a

strategic plan needs to be further developed

and enhanced if we are not to run the risk of

boarding Plato's doomed vessel.

In developing our vision we also need to look at

fundamentals. Hence this magazine which

examined in its last issue the importance of

food security, has ventured into the subject of

water as a strategic resource. In fact water

which is largely taken for granted in Sri Lanka,

could possibly be the country's most valuable

resource, if its importance and strategic value

are really understood.

In addition to natural resources such as water a

key component of the investment equation are

undoubtedly human resources.

Investors who decide to set up projects in Sri

Lanka invariably enquire on the availability of

suitable human resources to ascertain whether

production can take place in the country.

Currently the total workforce amounts to half

of Sri Lanka's population, with men making up

for slightly more than half of that. However,

women are often employed in some of the key

export industries of the countries such as

apparel, electronics, Tea, Rubber and

cinnamon. The importance of working women

to the economy and the challenges they face

are captured in an article in this magazine.

In addition women who work overseas remit

considerable sums of foreign exchange, and

therefore, contribute generously to the

country's economy. It is therefore of primary

importance to the country in long term to look

at the issues faced by working women. It is

imperative to meet the highest international

standards and also to ensure that the country

has the right type of human resources sought

by leading investors.

These points are essential and a clear

u n d e rs t a n d i n g o f t h e m a n d o t h e r

fundamentals could help us shape and create

in the long term a solid base for investment in

Sri Lanka.

Meet the Chairman

Tel: +94 11 2427001, E-mail: [email protected]

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.

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: [email protected] Assistant - Priyalal Sirisena

w w w . i n v e s t s r i l a n k a . c o m

ON STRATEGY, GLOBAL VISION AND UNDERSTANDING OF FUNDAMENTALS

Volume 04 - January, 2017


w w w . i n v e s t s r i l a n k a . c o m01


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.

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.

Sri Lanka-Malaysia ties built to boost trade and investment


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‘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 re c e i ve d h i s Ta j i k i s ta n i co u nte 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

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

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 andHon. 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 Corporat ion – s igned by Hon. Mal ik Samarawickrama, Minister of Development Strategies and International Trade of Sri Lanka and Hon. HikmatullozodaNematullo, Minister of Economic Affairs of TajikistanAfter 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 Amaratunga, Mal ika Samarawickrama, DayasiriJayasekera, Acting Foreign Minister Harsha de Silva, President’s Secretary P.B. A b e y k o o n a n d F o r e i g n S e c r e t a r y EsalaWeerakoon also took part in the bilateral discussions.

Sri Lanka is ready for Trade and Economic Co-operation – President

Work begins on US$ 166 Mn Commercial Development at Havelock City 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.

Overseas Reality founder S.P. Tao



LSEG Facility consolidates investor confidence in SL

The investment in Sri Lanka by London Stock Exchange Group (LSEG) technology facility is a clear example of the investment 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 lear example o f investeor confidence for the government.The premier also said that in

addition the new lease deal for the Hambantota Harbour with a Chinese counterpart too will be inked in January and the Trincomalee Port c i t y d eve l o p m e nt w i t h t h e ass istance of Japanese and 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 wil l have new legislation drawn up to support

companies setting up office there.”

“The Megalopolis development too will bring in major foreign investors to Sri Lanka and help to usher

economic property to the country.”

L S E G w i l l i n d i r e c t l y o f f e r 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 a n d t e c h n o l o g y b u s i n e s s , 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

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 K i n g d o m , w i t h s i g n i f i c a n t operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 persons.

Shirajiv Siriamne, Daily News


SL will integrate trade in Asian region: PM

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.

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.

W e h o p e t o c o m p l e t e t h e negotiations with India, China and Singapore by June this year,” said Minister of Development Policies and

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

Expressway would be commissioned within the next two and a half years.

M i n i s t e r o f F i n a n c e R a v i 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 t e c h n o l o g y e d u c a t i o n a n d d e v e l o p i n g o t h e r d i g i t a l infrastructural facilities.

“

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London Stock Exchange Group has extensive experience of working in Sri Lanka through its global trading andtechnology business, MilllenniumIT, based in Colombo and Malabe.




Prime Minister opens $50 m gloves export factory in Koggala

ATG Hand Care Managing Director Fasal Ahabdeen shows a glove manufactured at the new plant of the Company at the Koggala Free Trade Zone to Prime Minister Ranil Wickremesinghe following its inauguration by the latter

Prime Minister Ranil Wickremesinghe yesterday opened a state-of-the-art factory producing gloves for export at the Koggala Free Trade Zone.

The factory, ATG Hand Care Ltd., is a $50 million investment that provides 7,000 jobs directly and 10,000 indirectly. ATG

Hand Care is a joint venture of ATG Ltd and British investor John Ward Ceylon. Incidentally, Wickremesinghe opened the Koggala Free Trade Zone in June 1991 as the then Minister of Industrial Development. This factory is the last project of the Zone.

Daily FT

Mövenpick Hotels and Resorts arrives in ColomboM ö v e n p i c k H o t e l s & 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 i n t e r n a t i o n a l h o t e l company in the country.

The hotel will be officially inaugurated today by Pres ident Maithr ipala Sirisena. It will be the city’s first new international five-star property in 25 years – a milestone that reflects the country’s new-found energy and optimism.

Mövenpick Hotel Colombo introduces a whole new level of vertical experiences in the heart of the city, offering a variety of culinary, wellness, entertainment and modern facilities from the ground floor to the rooftop.

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 to u r i s m , e d u cat i o n , fo re i g n employment and agriculture. The Pres ident a lso suggested the 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 t h e i n v e s t m e n t a n d t r a d e 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.

Malaysia to explore...

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, g o v e r n m e n t , i n t e r n a t i o n a l 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 have supported internat ional cooperation in the past by adapting them for today’s complex, multipolar world in ways that foster genuinely inclusive growth.

PM and President Xi talk...

...from Front Page

...from Front Page




Sri Lanka-China Industrial Zoneis 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 D e p a r t m e n t o f G o v e r n m e n t 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.

“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 b i l l i o n U S D b a s i c f o r e i g n

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

r e f u t e d t h e a l l e g a t i o n s 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 at C h i n e s e

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.

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 income around Rs .80 ,000 to 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 co n o my n e e d s to fo c u s o n

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 r a t e j o b opportunities about 35 times larger than the f r e e t r a d e z o n e s 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.

Harvard Professor lectures on

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 SamarasingheDirector (Media & Publicity)

“

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The success of the Hambantota

Industrial Zone will create not

just one million jobs but more

than five million.




Job Fair

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

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 Country 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

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.

SRI LANKA EYES BIGGER ROLE FOR PRIVATE SECTORBoard of Investment signs Memorandum of Understanding with Oxford Business Group for new report

For more information please contact:Marc-André de Blois, Director of CommunicationsE-mail: [email protected] Media City, Aurora Tower Floor 14 OfficePO Box 502 659 Dubai UAET +971 4 426 4642F +971 4 426 4641131 Great Titchfield St. LondonW1W 5BB United KingdomT +44 20 7403 7213F +44 17 3026 0274

BOI scheme to engage job seekers outstations showsgreat success in Kurunegala District

http://www.oxfordbusinessgroup.com

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A b u s i n e s s d e l e ga t i o n f ro m Guangdong Province visited the Board of Investment of Sri Lanka (BOI) with the objective of exploring opportunities for investment in Sri Lanka. The delegation consisted of Senior Chinese State and Party officials and executives of enterprises f r o m G u a n g d o n g particularly from the port city of Nansha.

The Chinese delegation was received by Mr. Duminda A r i ya s i n g h e , D i re c t o r General of BOI. Assisting the Director General were Ms. Ni lupul De S i lva, (Director – Promotion), Mr. Dilip S Samarasinghe (Director – Media & Publicity) Mr. Vipula Jayasinghe Senior Deputy Director (Promotion – China Desk Officer), Ms. Kumudini Rathnaweera, (Deputy Director- Promotion) and other senior officials of the BOI.

There have been strong economic relations between Colombo and Guangzhou, since both are included in China's One Belt One Road (OBOR) strategic initiative to connect China by trade, to Asia, Africa and Europe.

The leader of the visiting delegation Madam Huaying Zhong, Chairperson C h i n e s e P e o p l e ' s P o l i t i c a l Consultative Conference, Committee of Nansha District of Guangzhou, indicated that their visit to Sri Lanka was to evaluate the island's potential

for trade and investment. They added that there are many companies in Nansha who could be interested in investing in Sri Lanka. The delegation also invited the BOI to visit Guangzhou province to meet Chinese investors.Guangzhou (formerly Canton) is a

highly developed city which is on the Eastern Coast of China, where much o f t h e c o u n t r y ' s e c o n o m i c development has taken place. Hence there was considerable opportunity to pursue trade and investment with this province.

Furthermore Nansha is a very important port city in China and particularly developed in the area of E-commerce. Nansha is also a platform for trading with Southern China. The Sri Lankan side explained to the Chinese visitors that the country is currently seeking to attract m o r e i n v e s t m e n t i n t h e manufacturing sector, particularly focusing on value added production in targeted sectors such as electronic, apparel and rubber based products. The BOI delegation informed the Chinese visitors that the manufacture

of electrical equipment is one targeted area which could provide an opportunity for future Chinese investments.

Another area of potential co-operation is in the manufacture of Jewellery which is highly developed in Nansha, since the city has a large 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 Agr iculture, 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.

DELEGATION FROM GUANGDONG PROVINCE, CHINA VISITS BOI

BOI welcomed a visiting delegation from Guangdong Province, China

Asia willbail out ......“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.

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 rga 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, wariyapola, Bingiriya, panduwasnuwara, K u r u n e g a l a , M a w a t h a g a m a , D o d a m g a s l a n d a , P o l g a h a w e l a , K u l i y a p i t i y a , K a t u g a m p a l a a n d Dambadeniya areas, to find suitable employment opportunities. More than thirty eight leading BOI and EDB enterprises who are seeking to employ staff participated at the job fair and therefore approximately 2000 job seekers were given a rare opportunity to meet company representatives and select jobs in diversified fields. This was indeed a new experience for the youth of the area.

Hon Sujeewa Senasinghe, the State 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 rat n e , D i s t r i c t S e c reta 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.

Dilip S Samarasinghe, Director (Media & Publicity)

...from Front Page

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The Sri Lankan side explained to the Chinese visitors that the country is currently seeking to attract more investment in the manufacturing sector,particularly focusing on value addedproduction

Jagath De Silva, Senior Deputy Director (Media & Publicity)



EU-SRI LANKA INVESTOR DIALOGUE TO BOOST TRADE AND INVESTMENT FROM EUROPE

A meeting was organized by the Board of Investment of Sri Lanka and the Ministry of Development Strategies and Internat ional Trade to address outstanding matters concerning investors from the European Union. The Sri Lankan side was led by Hon. Malik S a m a r a w i c k r a m a , M i n i s t e r o f D e v e l o p m e n t S t r a t e g i e s a n d International Trade assisted by his Ministry secretary Mrs Chandani Wijewardhana, Mr. Upul Jayasuriya and Mr. Duminda Ariyasinghe, respectively Chairman and Director General of the BOI and Mrs . Ind i ra Malwatte 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

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 a m b a s s a d o r s a n d c o m m e r c i a l 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 Republ i c o f I ta ly, H .E . Joanne

Doornewaard, Ambassador, Embassy of the Kingdom of Netherlands, Ms. Eva-

van Woersem, Deputy Head of Mission, Embassy of the Kingdom of Netherlands, Mr. Gerhard Trumper, Head of Commercial Section,Embassy of the Federal Republic of Germany, Mr.

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 D e v e l o p m e n t S t r a t e g i e s a n d 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

matter was now to be finalized at the European Parliament for final approval.

Another very posit ive development was the end of the ban on Sri Lanka's fisheries products. Minister Samarawickrama spoke of the need to improve exports further mentioning fruits, vegetables, floriculture and horticulture products as additional goods to be exported to the EU.

Sri Lanka was currently experiencing 6% - 7 % economic growth and

interest rates are very attractive. He added that he wanted various countries to have ratings which would be on par with those of India.

On the pol it ical front Minister 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 s e e k i n g t o a c t i v e l y d e v e l o p 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

th ree ports , namely Co lomb o, Tr i n c o m a l e e a n d H a m b a n t o ta . Furthermore, there would be 4 major airports in the country at Colombo, Hambantota, Hingurakgoda and Palali.

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

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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.



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

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.

Sri Lanka, as a country with a large English 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 xe 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 Silva, Director (Promotion) and Mr. 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.

JAPANESE SME BUSINESS DELEGATION VISITS BOI ON AN EVALUATION MISSION

The BOI hosted a delegation of Japanese SMEs interested in Sri Lanka's investment potential

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 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

Lanka will have duty free access to the European Union market on all her products.

Hence fisheries products a n d a g r i c u l t u r a l products which the Minister had mentioned would also be covered u n d e r t h e G S P + agreement and will be a b l e t o e n t e r t h e European Union duty 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 n e e d e d b y S r i L a n k a a p p a r e l 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.

The Ambassador concluded by saying that EU and Sri Lanka have been strong partners historically and at present these r e l a t i o n s a r e b e i n g f u r t h e r

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

was seeking the possibility of setting up a central portal where planned projects would be listed.

Both sides also discussed matters relating to customs including facilitation and also a clear definition of what constitutes "used cars". Individual European Union delegation brought to the attention of the Sri Lanka side specific instances of companies that 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.



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Sri Lanka, as a country witha large English speaking population, is well placed toact as staging point to connect South Asia with East Asia, notably China.

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In terms of economic importance the EU is Sri Lanka's first trading partner representing 31% of all of Sri Lanka's exports.




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.

Jilin is a strategically located Province of North Eastern China bordering Russia and North Korea. It is an industrialized province with a GDP of about US$122 billion and a per capita income of 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.

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 handl ing 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 e m p l o y e d i n m a n y

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

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.

Roundtable conference with delegation from Jilin , China

12A round table conference was held by BOI for a visiting delegation from Jiling Province, China


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a rise in Chinese investments in Sri Lanka is well on its way, andSri Lanka can offer smooth handling of investment, since key areas such as customs, exchangecontrol and immigration are now under one roof, namely the BOI.




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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 ret i red 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,

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.

Chinese Business Delegation Visits BOI Zone

The Chinese business delegation visited a factory at Katunayaka Export Processing Zone

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

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 f l ights 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.

High Powered

Dilip S Samarasinghe, Director (Media & Publicity)




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

products, food & agro-based products, f u r n i t u r e a n d furnishing, arts & crafts, jewellery & accessories, consumer goods, etc.

Each year, CAEXPO w e l c o m e s a b o u t 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

thAsia the Organizers of the 13 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

st21 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

Affairs, Export Development Board, Sri Lanka Tea Board, Sri Lanka Tourism Promotion Bureau, Board of Investment and National Gem & Jewellery Authority.

thAs the “Special Guest Country” at the 13 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.

EventSri 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

THBOI PARTICIPATES AT 13 CHINA ASEAN EXPO 2016 IN NANNING

TH TH(GUANGXI PROVINCE AND SRI LANKA INVESTMENT PROMOTION CONFERENCE 11 -14 SEPT 2016




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)

th thwhich was held from 11 -14 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)

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

Guangzhou.

The Hon Minister of Industry and Commerce

Rishad Bathiudeen made the keynote speech

highlighting the investment climate and the trade

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

A r i y a r a t h n e –

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

audience with a very memorable and long lasting

impression about the rich cultural heritage,

wealth of natural resources, bio diversity blended

with rare species of fauna and flora indigenous to

Sri Lanka and wild life sanctuaries. This was

followed by B2B meetings.




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.

thLevel 27 , West Tower, World Trade Centre, Colombo 1Tel: 011 2338359, Email: [email protected], Fax: 011 2333129

SRI LANKABOI

One Stop Shop

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

The following services required by investors are now available at one location;




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 l o n g ta b l e s , m e t h o d i c a l l y 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-per-mi l l ion) qual i ty safety 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

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 t h e a u t o m o b i l e 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

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

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 e m e rg i n g e co n o m i e s w i t h relatively cheap but skilled labor. Sri Lanka has companies supplying k n i t t e d c o m p o n e n t s t o 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.

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Sri Lankan auto-parts maker rides global demand waveWith Japanese insights, an auto-parts maker leads the way for Sri Lanka's industrial sector.

Rohan Pallewatta talking about the impact sensors for airbags and seat belts for cars that his factory producers. (Photo by Marwaan Macan-Markar)

Women attaching wires to the impact sensors

MARWAAN MACAN-MARKAR, Asia regional correspondent

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



- GUEST LECTURE BY PROF. RICARDO HAUSMANN HARVARD KENNEDY SCHOOL OF GOVERNMENT

THE IMPORTANCE OF TECHNOLOGY AND KNOWHOW IN ECONOMIC DEVELOPMENT

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

terms of development despite having an educated population, an excellent locations, some natural resources and comparat ive advantages in many areas. Some answers to that daunting question can indeed be found in the lecture delivered by Prof. Hausmann.

The lecture however sought to examine ways in which countries such as Sri Lanka could achieve higher development by identifying bottlenecks and creating a timeline to achieve high economic growth. Prof. Hausmann began by stating

that Sri Lanka does have strengths, for example in the Human Development Index, hav ing 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 exports of many Asian countries. One of the main reasons for this, according to Prof. Hausmann, was that other Asian countries have diligently developed new types of businesses and have therefore successfu l ly

diversified their export base. For example China has added 70 new products for exports while Sri Lanka has only achieved 7 products. The importance of the new products to the economy is that they contribute towards boosting the GDP of the country. In the case of China the e co n o my h a s a l s o b e co m e technologically more advanced with a planned move from the production of garments to that of electronics and from there on, to producing machinery. Hence the addition of these new products has

boosted China's exports and contributed to enriching the population.

In the case of Thailand there is also a movement to go 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 other hand has not a c h i e v e d t h i s transformation and Sri Lanka is still largely depended on the export of apparel.

Where Sri Lanka has achieved some successes in diversifying her exports, is in areas such as logistics, finances and tourism. Sri Lanka is also not a competitor of some of the low end countries in the area of manufacture. Hence this middle position does place the island nation in an ambiguous situation where it imperative that it moves to a higher levels of production of exportable goods.

Prof. Hausman also addressed the question of how countries become wealthier. Drawing on Adam Smith's classic work "the Wealth of Nations", Hausmann stated that in the 18th Century the Netherlands was considered the richest country in the world and others were more or less equivalent.

However, in today's global economy there are enormous disparities between states with Malawi being considered the world poorest c o u n t r y. I n t h e We s t e r n atmosphere that position is held by Haiti.

Furthermore there are enormous discrepancies that exist even within individual countries, with an enormous diversity between regions. In Mexico for example the poorest state Guerrero has a GDP of US$ 5,000 while the state of Nuevo Leon, the GDP is at $42,000, which is comparable to that of the Republic of Korea.

Hence there is a factor of 8 just between regions of Mexico and this divergence exists in many countries in the world.

The assimilation of technology has undoubtedly an important part to play in these differences and the Prof. Hausmann elaborated as to what really does constitute

t e c h n o l o g y . Technology is in fact a successful a s s i m i l a t i o n a c h i e v e d b y having the right tools, the right c o d e s o r procedures, but

more importantly the necessary know how to make development possible.

In order to acquire successfully the necessary technology, a country should have heterogeneous teams that work together to achieve the necessary requirements needed for technology to exist.

Hausman also examined the case of two individuals, the former being an Inuit living by catching fish, building his own igloo and travelling by dog sleigh and then comparing him to a modern office worker using a computer. He added that whilst the latter may seem technologically more advanced, he would be totally incapable of surviving in a hostile environment like the Arctic. Hence the question of what does really constitute technology remains a highly debatable subject.

The technological complexity of many products manufactured today such as a Boeing airliner is often more than what a single country can hope to produce. Hence in today's globalized economy, technology is not confined within the borders of a single country but often scattered in many parts of the world. Successful production is therefore based on the ability to work together to build complex products , such as commercial aircraft.

Generally speaking, rich countries make complex goods while poor countries are forced to produce relatively few goods that almost every other country is quite capable of making.

Sri Lanka's position is somewhere in

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In order to acquire successfully the necessary technology, a countryshould have heterogeneous teamsthat work together to achieve thenecessary requirements needed for technology to exist.

Sri Lanka would need to achieve greater complexity in productioncapability and achieve a higher quantum of know-how.

B o a r d o f I n v e s t m e n t o f S r i L a n k aVolume 03 - August, 2016



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.

Hausmann said that a country like India endowed with advanced technology and therefore has what it takes to be a rich country. However, that is not a case. By 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 a l s o n e e d e d i s a c l e a r 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

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 e v e n b e e n advantaged, having invested more in e d u c a t i o n a n d b e n ef i t i n g f ro m being an English speaking country. But Thailand moved from the production o f a g r i c u l t u r a l 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 co 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 p ro d u c t s s u c h a s m e d i c a l equipment particularly those

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 eve l o p m e nt S t rate g y a n d International Trade to develop a new products space for the country.

Sri Lanka's success in the long term will be determined by the extent to which the country can develop a great diversity of skills which turn w i l l b e t h e c a t a l y s t s f o r manufacturing a wide range of advanced products.

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 a n d f i n a l l y Fo re i g n D i re c t 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

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

In addition it is imperative that FDI as a percentage of the GDP be increased if Sri Lanka is to achieve greater wealth. Today FDI is just 1% of the country's GDP, which contrasts with Albania where FDI is 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 SamarasingheBA(Hons) Essex, MIA ColumbiaDirector (Media & Publicity)Board of Investment of Sri Lanka

The views expressed in this articles are personal to the writer.

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Sri Lanka's success in the long term will be determined by the extent to which thecountry can develop agreat diversity of skills which turn will be the catalysts formanufacturing a wide range of advanced products.




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 s e r i e s o f q u e s t i o n s o n a n 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

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."

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

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.


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 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 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

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 large shopping arcade infused with a plethora of brands both local and international, supermarket, games a n d r e c r e a t i o n a l activities providing an 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.

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

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 faci l i t ies , 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

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

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.

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 m o s t a t t r a c t i v e i n v e s t m e n t destinations today.

These include a vibrant diversified culture, rich history, strategic geographic location, strong stable government leadership, agricultural abundance and progressive industrial production. Colombo is seen as having the potential to be South Asia’s hub for 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. .

Abans promotes Colombo City Centre: Luxury living and lifestyle in heart of Colombo

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The mall will feature a large shopping arcade infused with a plethora of brands both local and international, supermarket, games and recreational activitiesproviding an enjoyable experience for individuals as well as families alike.

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.

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(Artistic Impression)


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

BOI’s Strategy for Investment:The United KingdomThe 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, a c c e s s o r i e s , e l e c t r o n i c products, Security Printing, t o u r i s m , i n f r a s t r u c t u r e 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 there is value addition, education and skill development. Some of the selling points of Sri Lanka is that the country offers a very conusive environment for manufacturing.

The same goes for the tourism i n d u s t r y t h a t i s c u r r e n t l y undergoing a rapid expansion. There are also many opportunities

available in the country as Sri Lanka has been promoting exports

through backward linkages, high technology and value addition.

As costs of production in the UK are 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.

In addition Sri Lanka is a country where English is widely spoken, being the language of Business and also having a legal and banking systems based on those of the UK. These factors contribute to making

Sri Lanka a safe and conducive environment for B r i t i s h investments.

British companies if they set up in Sri L a n k a c a n i n 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.

Areas where there is considerable potential for FDI is the Business

Process Outsourcing as well a s R e s e a r c h a n d Deve lopment . Br i t i sh companies can use some of the advantages that the island can offer such the widespread use of English, skilled workforce, modern t e l e c o m m u n i c a t i o n s , 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 bilateral agreements that cover many areas relating to investment.

British investments to Sri Lanka e n j o y p r o t e c t i o n f r o m 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 M u l t i n a t i o n a l I n v e s t m e n t 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.

Nilupul De SilvaDirector (Promotion)




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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 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.



Apparel Exporters’ Association upbeat on GSP+, more FTAs

Felix A Fernando, Director, Omega Line Ltd was appointed as the new Chairman of the Sri Lanka Apparel Exporters 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.

N e w C h a i r m a n ' s s p e e c h r e v o l v e d a r o u n d t h e 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 a c h i e v e a s u s t a i n a b l e development through export led growth with globally connected value chains. The Prime Minister, in his recent E c o n o m i c S t a t e m e n t 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 c o m m i t m e n t t o t h e 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,

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 e x p o r t e r s . W h i l e a c k n o w l e d g i n g t h e 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.

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”.




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 wo r l d ' s e co n o m i c power house and to other regions such as the Persian Gulf, Africa and Oceania.

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.

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

Lanka not in isolation but as part of a highly complex trading system connecting countries and cities in Asia and beyond.

In many ways there are modern parallels as we currently seek to develop the country as a logistics hub and to connect it successfully to the global supply chain.

This idea of a regional trading community connecting countries and resulting in the sharing of knowhow, technology and indeed of ideas is the subject of a very fine exhibition that this writer was privileged to view at the Museum of Asian Civilizations in Singapore.

The exhibition which is titled “Port Cities” d e a l s w i t h t h e emergence of trading hubs in the Asian Region.

The cities in question include not just Temasek, (the old name for Singapore) but also a number of cities dotted throughout Asia such as the booming Chinese port city of Xiamen, which this writer also visited recently, and l inked together through an extensive and highly developed web of international trade.

What make these cities distinctive are not just their location which is highly strategic but also their wealth, their very cosmopolitan c u l t u r e a n d n o n t y p i c a l environment.

Ethnically speaking they are booming markets that act as gathering points where Chinese, Malays, Indians, Arabs and later

Europeans were actively engaged in exchanging goods through trade. However the exhibition focuses not just on the trade of goods but also examin es th e exch an ge 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 w e r e t h e e m e r g e n c e o f populations of mixed ethnicity with very distinctive hybrid cultures, cosmopolitan ideas and also what could be considered a global world view.

The port cities of Asia had an ancient history but they would undergo major upheavals with the emergence in Asia of the western

maritime powers: the Portuguese and Spanish followed by the Dutch and the British.

From being on the periphery of the trading s y s t e m a n d e s s e n t i a l l y traders seeking to bring back to Europe rare s p i c e s a n d o t h e r treasures, the E u r o p e a n powers would t h r o u g h m i l i t a r y t e c h n o l o g y

and a ruthless exploitation of local divisions, emerge as the key players in the trading systems, through colonialism.

In spite of this they would still have to contend with the elephant in the room, Asia's oldest culture and leading power, Imperial China.

Interestingly in those times, like today, the Middle Kingdom was the center of production of consumer goods and was undoubtedly the cornerstone of the trading system. These goods such as silk, porcelain and tea were traded to the known world through Asia's port cities. Only China seemed capable of meeting the growing demand.

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 i nto a n e co n o m i c h u b , o f 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.


The views expressed in this articles are personal to the writer.

OF HUBS, PORT CITIES AND THE EXCHANGE OF IDEAS



Ivory box made in Sri Lanka for King of Portugal Porcelain bowl made in China for Persia

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It is necessary to really see Sri Lanka not in isolation but as part of a highly complex trading system connecting countries and cities in Asia and beyond.

What make these cities distinctive are not just their location which is highly strategic but also their wealth, their very cosmopolitan cultureand non typical environment.


"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

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 l ive style. With passing of t ime, 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 issuesThe 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 dr iven 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 m e d i a t o o a t t i m e s 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 n e e d s , t h e i r e x p e c t a t i o n s a n d 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. T h r o u g h f r i e n d s a n d acquaintances girls find employment in factories. Once they get into the zone depending on the popularity, benefits and

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.

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 workersSri Lankan female work force is considered well educated, and intel l igent 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 I n d u st r i a l Re l a t i o n s D e p a r t m e nt 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 wi th the enterpr i ses to prov ide 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,

sports and var ious other career 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 a lways been instrumental in maintaining the peace within the zones and have also ensured that the employees interests are being safeguarded and protected.

Concerns of BOIThe 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 O r g a n i z a t i o n t h e r e a r e c e r t a i n 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 BogamuwaSenior Deputy Director (SEPZ)

THE ROLE PLAYED BY THE BOI IN THE LIVES OF THE FEMALE ZONE WORKERS



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The factories too have changed their outlook. Social problems are tackled by Human Resource Development programmes.

Coming from homesthat 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.

B o a r d o f I n v e s t m e n t o f S r i L a n k aVolume 03 - August, 2016

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 L a n ka b o o st h e r a g r i c u l t u ra l 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

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

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 wil l 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 re 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 a ro u n d t h e wo r l d a n d o t h e r institutions are working at ways to rationalize the use of water.

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

i d e n t i f y i n g f o r production crops that use comparatively little water.

Recycling of water is a l s o h i g h o n t h e agenda. A lot of research in this field has been done in Israel, an arid country that h a s a c h i e ve d t h e capacity of recycling 80% of its water.

I s r a e l h a s m a d e s i g n i f i c a n t 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.

It is interesting to look at new solutions proposed to dea l with water 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 a l l 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.


The views expressed in this article are personal to the writer.

EVALUATING WATER AS A STRATEGIC RESOURCE




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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.



In-house aesthetic talents

BOI Staff News

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 artist, actor and academic who covered the topic of “Reconciling harmonious existence

thand aesthetic pursuits” on 18 November 2016 at the BOI auditorium at the World Trade Centre. Dr Manoratne's lecture was very well received and generated considerable interest among the BOI staff.

BOI wins two prestige awards

At KEPZ

In Search of Paradise: A glimpse from the mythical history to the reality

of Bandaranayake assassination

The veteran film maker Dharmasiri Bandaranayake's latest documentary film “IN SEARCH OF PARADISE” was screened at the BOI auditorium recently. The documentary chronicles the turbulent Sri Lankan socio-political history, culminating in the first ever politically-motivated assassination, the assassination of the Prime Minister S W R D Bandaranayake.

This film show was organized by the Association of Executives of BOI

At Head Office

The BOI Staff at K E P Z O f f i c e c o n d u c t e d a c o n s t r u c t i v e C h r i s t m a s Celebration Event

ston 21 December , 2016 from 16.00 hrs. to 24.00 hrs. to KEPZ for the f i r s t t i m e i n c o l l a b o r a t i o n w i t h t h e M a n u fa c t u r e s and FTZMA at KEPZ under the guidance of Mr. M K D Lawrance – Director-(KEPZ).

A Charity Event also donating dry rations and other essential Items to S t . A n n s ' Orphanage at Demanhandiya , Katana and some Contract Workers w h o l i v e i n poverty had been organized with t h e f i n a n c i a l contributions of t h e B O I a n d Employees of BOI at KEPZ for the

thconsecutive 25 year.

Sixteen Groups of E m p l o y e e s 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 & Music Teacher at St. Josephs' Seminary , Kohuwala ) , Mr. Anton Ruwantha ( Music Teacher at St. Peters' College , Gampaha) and famous Musician , Mr. Prasanna Rosa.

Mr. Duminda Ariyasinghe , the Director General of BOI, graced this occasion as the Chief Guest.

Christmas Celebrations Lecture on “Reconciling harmonious existence and aesthetic pursuits”


BOI won two prestige Awards at the Social dialog & workplace Co-operation award ceremony conducted by the Ministry of Labour and Trade Union Relations. Katunayaka Export Processing Zone won the Gold Award for the Service Sector large Scale category. Seethawaka Export Processing Zone won the Gold Award for the Service sector medium Scale category.

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volume 04 - january, 2017 board of investment of sri … lanka's strategy for investment : the...

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