Boi Gen Presentation 2007 March
29
Investment Opportunities in Sri Lanka Chairman/Director General Board of Investment of Sri Lanka
Transcript of Boi Gen Presentation 2007 March
Investment Opportunities in Sri Lanka
Chairman/Director GeneralBoard of Investment of Sri Lanka
Why Invest in Sri Lanka?
Locational Advantage
Investment Climate
Good Infrastructure
Skilled and Literate Human Resources
Attractive Fiscal Incentives
Preferential Market Access Indo Lanka Free Trade Agreement Sri Lanka Pakistan Free Trade
Agreement GSP +
Area - 65,610 sq km.
Population - 19.6 Million
Work Force - 8.1 Million
Literacy Rate - 92%
Languages - Sinhala, Tamil, English
Business Language - English
Education - British based education system.
Sri Lanka Some Socio-Economic Statistics
Economic Indicators
2001 2002 2003 2004 2005 2006 (a)
GDP growth % -1.5 4.0 6.0 5.4 6.0 7.4
Inflation % 12.4 8.4 5.0 9.3 9.9 10.3
Budget Deficit (% of GDP) 10.8 8.9 8.8 8.2 8.7 8.4
Curr. Ac. Balance Deficit (% of GDP) 1.4 1.4 0.4 3.2 2.8 4.9
Foreign reserves (months of imports) 4.5 4.9 5.8 5.2 5.7 4.7
Indicator Sri Lanka **
India Pak. Bangladesh Nepal
1. GNP per capita (US$) * (Year 2005)
1,350 714 770 403 260
2. GDP Growth % (Year 2005) * 7.4 7.6 6.9 5.7 3.7
3. Inflation % (Year 2005) 10.3 4.6 2.9 6.7 5.7
4. Literacy % 92 59.5 48.7 43.1 44Source : World Development Report 2005, Sri Lanka Socio-Economic Data 2005, Central Bank of Sri Lanka 2006 * World Development Indicators Database, World Bank, August 2005
** For 2006
Our Business Environment
Total Foreign Ownership
No restrictions on Repatriation of Earnings
Safety of Foreign Investments Guaranteed by the Constitution
Commercial Law is based on the British Laws
Our Business Environment (contd….)
UK
Japan
India
Indonesia
Iran
Malaysia
Pakistan
Thailand
Korea
Australia
USA
Singapore
China
Canada
France
Germany…… etc.
Investment Protection (over 20 Countries)
Our Business Environment (contd….)
Double Taxation Relief (over 30 countries)
India
Japan
United Kingdom
UAE
United States
China
Korea
Iran
Malaysia
Pakistan
Saudi Arabia
Singapore
Thailand
Canada
France
Germany….etc.
Special Tariff Preferences for Sri Lankan products
• Indo-Lanka FTA - 4,232 products (zero duty)
• Sri Lanka-Pakistan FTA - 206 products (zero duty)
4,480 products – 20% immediate
duty preference
(phasing out to zero duty in 3 yrs)
• EU GSP + - 7,200 products (zero duty)
Sri Lanka – India FTA
Category(Type of concession)
No. of Items(at H.S.6 digit level)
Sri Lanka India
No concessions (Negative List) 1,220 433
(Tariff Rate Quota) - 1235 205
100% Tariff Concession (immediate zero duty)
1,225 4,233
25% Fixed Concession (Textile) - 553
Phasing out list (Duty free in year 2008) 2,779 -
Total 5,224 5,2241 – Garments (235) – in the Negative list2 – Tea (5) – not in the Negative list
Summary of Commitments
Sri Lanka – Pakistan FTA
Category(Type of concession)
No.of Items(at H.S.6 digit level)
Sri Lanka Pakistan
No concessions (Negative List) 697 537
(Tariff Rate Quota/Margin of Preferences) 1(02) 2(31)
100% Tariff Concession (immediate zero duty)
102 206
Phasing out list (Duty free in 3 or 5 years) 4,425 4,481
Total 5,224 5,224
1 – Basmati & Potatoes2 – Tea (4), Beatle leaves (1), Garments (21), Ceramic (5)
Summary of Commitments
Rules Of Origin Criteria - ISLFTA & SLPFTA
• Wholly produced/obtained products (both Agreements)
• Non-wholly produced/obtained products
35% domestic value addition of FOB value (both
Agreements)
(Cumulative ROO : 25% + 10%)
H.S. Code Transformation
ISLFTA – at 4-digit level
SLPFTA – at 6-digit level
Sufficient Process (both Agreements)
The EU Generalized System of Preferences
Effective Date : GSP+ -1st July 2005 (Provisional)New GSP System – 1st Jan 2006
Types of system : General Arrangement
: GSP+ Scheme for Specially vulnerable countries with special
development needs
: Special arrangement for LDC’s
Product coverage : Total - 7200 (3600 NS + 3600 S)
: All 7200 products will be eligible for duty free access under
GSP+ scheme
: No quantitative Limitations
The EU system of extending preferential access to its markets to developing countries.
New GSP System
Our Infrastructure
COLOMBO PORT
World Port Ranking No. 1 in South Asia Within Top Ten in the Region
37th among the World container ports (Source: Containerisation International Yearbook 2005)
COLOMBO AIRPORT
Brand new US$ 100 Mn investment facility opened this year
BOOMING TELECOM INDUSTRY
NEW ROAD NETWORKS
SLPA
SAGT
2006 Total Container throughput TEU’s* – 2.5 Mn
2005 Transshipment TEU’s – 1.6 Million
Throughput growth - over 20% (1996-2004)
Transshipment Cargo - 66%
33 Major Shipping Lines
14 Feeder Services
Operations fully computerized and linked to all major Freight Stations
Colombo Port ….
*Twenty foot Equivalent Unit
Colombo South Port Expansion
Projected Cost
US$ 1 Bn
Projected Capacity
4 Mn TEU (12 New Berths)
Projected Area600 Hectares
Colombo Port (contd….)
India & the Subcontinent
Port Transit Time
Chennai - 2 Days Kolkatta - 2 Days Cochin - 15 Hrs Mumbai - 4 Days Tuticorin - 8 Hrs Karachi - 3 Days
India & the Subcontinent
Port Transit Time
Chennai - 2 Days Kolkatta - 2 Days Cochin - 15 Hrs Mumbai - 4 Days Tuticorin - 8 Hrs Karachi - 3 Days
Port Transit Time
Japan
Yokohama - 9 Days
Australia
Sydney - 11 Days
Europe
Amsterdam - 18 Days
Middle-East
Bahrain/UAE - 5 Days
UK
Felixstowe - 14 days
USA
New York - 21 Days
Singapore - 3 Days
Port Transit Time
Japan
Yokohama - 9 Days
Australia
Sydney - 11 Days
Europe
Amsterdam - 18 Days
Middle-East
Bahrain/UAE - 5 Days
UK
Felixstowe - 14 days
USA
New York - 21 Days
Singapore - 3 Days
Malaysia Port Kelang - 3 days
South Korea Pusan - 16 Days
Middle-East Bahrain/UAE - 5 Days Egypt - Alexandria - 18 Days
Colombo Airport
We Fly Direct
India (All Cities) over 106 per week
City Flights Per Week
• Singapore 26• Dubai 25• Bangkok 15• Kuala Lumpur 13• London 12• Hongkong 11 • Zurich 5• Paris 4• Tokyo 3• Frankfurt 3• Munich 3 • Beijing 3
Colombo Airport Expansion
Passenger Movement
5 Mn / AnnumCargo Movement
250,000 tons / Annum
Aircraft Parking apron Cpacity25 Stands
New Airport in WeerawilaIn the Southern Region
International Operators NTT Japan Telia AB Sweden Nortel of Canada Hutchison Whampoa HK Telekom Malaysia SARC Corporation NV Netherlands VSNL Millicom Celltel Singapore Telecom
Information & Communications
Technology (ICT)
Projected Investment 2006 – US $ 300 Million
(Mobile, Fixed Line, CDMA, Wireless & Payphones)
Information & Communications
Technology (ICT) (contd….)
Growth in Telecommunications, 1995-2006 June
1,509,9131,393,403
2,211,158
3,361,775
4,284,256
1,243,994
939,013
991,239
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
No
s.
Fixed phone lines (SLT)
Mobile phone subscribers
Source: Telecommunications Regulatory Commission of Sri Lanka
Fastest
Growing
Sector
Existing Zones
12 Fully Operational Zones with
all infrastructure facilities
administered by the BOI
New Zones for Public/Private Partnership
DevelopmentOther Potential Sites for Zones
• 12 Acre Katunayake Offshore Shopping Complex & Airport related BPO
• Pelmadulla Gem & Jewelry Zone – Ratnapura (50 acres)
• Trincomalee Industrial zone at Kappalthurai (750 acres)
• Puttalam Industrial Zone for Chemical industries(278 acres)
• Tourism Development Zones at Kalpitiya & Arugam Bay
• Textile Zone at Horana (220 Acres)• Special Economic Zone at Godagama – Matara • (700 acres)
• EPZ at Dambulla (600 acres)• Educational, IT & BPO hub at Henagama –
Biyagama (120 Acres)
Godagama (Matara)
Bata-atha
Biyagama
Puttalam
Establishment of Industrial Estates
Incentives
Investment US$ 1,000,000 03 years Investment US$ 5,000,000
08 years Investment US$ 25,000,000 10 years
Investment US$ 50,000,000 12 yearsInvestment US$ 75,000,000 15 years
Our First Private SectorTextile Zone has been
established at Thulhiriya
• Thulhiriya
• Jaffna
Ratnapura
• Polonnaruwa
• Dambulla
The Board of Investment of Sri Lanka
Under the purview of the Ministry of Enterprises Development and Investment Promotion.
Principal agency for Promoting, Approving and Facilitating Foreign Direct Investment (FDI) in to Sri Lanka
Central facilitation point for investors – One-Stop-Shop
A BOI Agreement is valid for the lifetime of the project
Your Single Window
BOI Incentives
Power Generation, Transmission and Distribution, Petroleum & Petroleum Products
Textile & Fabric Manufacture, Printing, Dying, Washing & Finishing (deemed exports)
Development of Highways, Ports, Airports, Public Transport and Water
services
Establishment of Industrial Estates Min. Investment US$ 1,000,000 - 3 Years
Min. Investment US$ 5,000,000 - 5 Years
Min. Investment US$ 25,000,000 - 10 Years
Min. Investment US$ 50,000,000 - 12 Years
Min. Investment US$ 75,000,000 - 15 Years
5 to 15 Year Tax Holiday
BOI Incentives (contd….)
Export Oriented Manufacturing Export Oriented Services Advanced Technology / Pioneering industries
Regional Operating Head Quarters
Tourism / Leisure Agriculture Research and Development Construction of Houses / Hospitals Small Scale Power Generation Other small scale infrastructure
3 - 5 Year Tax Holiday
Regional Head Quarters
3 Year Tax Holiday
BPO Industry
3 to 12 Year Tax Holiday
5 to 12 Year Tax Holiday
IT & IT enabled services (domestic market)
Training Institutes
3 to 12 Year Tax Holiday
BOI Incentives (contd….)
BOI Incentives (Contd….)
Export Oriented Manufacturing Export Oriented Services
Small Scale Infrastructure Large Scale Infrastructure IT Enabled Services Regional Operating Head Quarters Agriculture Research and Development
Duty Free Imports
On Capital Goods & Raw
materials
Only on Capital Goods
Exemption from Exchange Control Applicable to companies that export goods and services
and/ or receive earnings in foreign exchange
Leading Global Outsourcing in Sri Lanka
Leading Global Investments in Sri Lanka
www .boi.lk
Thank You
The BOI stands committed to facilitating your investment in Sri Lanka
![BOI-Brochure-Why-AW [Converted] · Title: BOI-Brochure-Why-AW [Converted] Author: admin Created Date: 4/25/2007 11:24:47 AM](https://static.fdocuments.in/doc/165x107/5f5889c69cf9ed11d37ff8b8/boi-brochure-why-aw-converted-title-boi-brochure-why-aw-converted-author-admin.jpg)
