USD 1.6 bn worth FDI expected from 66 projects, 45 expansions: BOI

Dec 15, 2015 (LBO) – Sri Lanka’s Board of Investment says they are expecting 1.6 billion US dollars worth foreign direct investments through 66 new projects and 45 expansions of existing projects. “As a result of the introduction of new procedures aimed at improving facilitation, the BOI succeeded in attracting a number of important projects in key sectors of investment,” the BOI said. The investment promotion bureau said once these investments are realized a total of 66 new projects and 45 expansions of existing projects will be operational, resulting in 1.6 billion US dollars FDI generating 16,075 new employment opportunities. As per the BOI data has signed three agreements with Dialog for a total investment of 175 million US dollars. The board has also signed an agreement with Senok Automobile to assemble Volkswagen automobiles in Sri Lanka which they said worth 26.5 million US dollars. Another project signed in 2015 was the revival of Kantale Sugar as a result of an agreement signed with M G Sugar Lanka, a 30 year project agreement run on Built, Operated and Transfer basis between the Government (51%) and the foreign investor (49%). “The investment is from Singapore and will result in creating 1,220 new job opportunities. The estimated value of the investment is 100 million dollars,” the BOI said. Other projects entered into in 2015 include Airport Express Air & Rail which will result in the building of an urban township development project that will link Colombo to Katunayake. This is a full foreign investment with participation from Malaysia, Portugal and Denmark. The BOI also inked a deal to set up a joint venture between Sri Lankan and Chinese companies to build a 176 roomed tourist hotel in Panadura for an estimated value of 20 million US dollars. The board has also signed an agreement with enterprises in sectors such as Hub operation activities to undertake offshore business and entrepot trading which one of the new investment segments that Sri Lanka is actively promoting. Laugfs Pharmaceutical has signed an agreement with BOI to manufacture pharmaceuticals with the estimated value of the project is 30.5 million US dollars. There are several other mixed development construction projects signed with BOI, the investment promotion bureau said.