BOI signs 19 agreements worth Rs.319Mn in March 2016

Apr 28, 2016 (LBO) – Sri Lanka’s Board of Investment signed a total of 19 new investment agreements in varied sectors in March 2016, the investment agency said in a statement. The agreements signed are valued of 139 million US dollars and are expected to generate 3100 direct new employment opportunities. As per the BOI statement, these projects cover a wide range of sectors as outlined below.   Housing Apartment Complexes A total 5 investment agreements have been signed to build apartment complexes in Thimbirigasyaya, Rajagiriya, Kohuwala, Nugegoda and Mount Lavinia, by the companies Ekroma Relators (Pvt) Ltd., Brix Realty (Pvt) Ltd., Blue Mountain Apartment (Pvt) Ltd., Alpha Homes (Pvt) Ltd and Rush Housing (Pvt) Ltd, accordingly.  The cumulative value of these 5 projects is US$ 28 million resulting in creation of 1575 employment opportunities.  The new buildings once completed will contribute towards creating a modern lifestyle in the Colombo District. Hotel Projects In the month of March 2016 two agreements were signed to develop hotel projects in Sri Lanka with a cumulative value of US$ 11 million.  Sunset Beach Resort & Spa (Pvt) Ltd signed an agreement to set up a 32 roomed boutique hotel in Wadduwa.  Another company JinkanySirigiya (Pvt) Ltd signed agreement to set up 60 roomed “four Star” hotel in Sigiriya. The construction of these hotels will contribute towards achieving the current target of the Sri Lankan Government to build a 75,000 rooms capacity in the country to meet the requirements of 4 million tourist arrivals by 2020. Manufacturing Projects Furnimix (Pvt) Ltd signed an agreement to set up a project to manufacture particle boards, Melamine content particle boards, Plywood Sheets, Pantry Cupboards, Timber veneer laminated furniture, office chairs, Foam mattresses, Steel cupboards, Sofa etc., for the local market.  The company will cultivate a plant known as “TabebuiaRosea” to manufacture wooden products.  This is a backward integration exercise by the Company where the raw material will be produced in Sri Lanka. Zhonggang Exports International (Pvt) Ltd., signed an agreement to set up a project to manufacture granite blocks in value added foam for the export market.  The production facility will be set up at Narawila, Matugama.  Thermotex (Pvt) Ltd., signed an agreement to set up a manufacturing plant in Malabe to produce printed fabric for the export market. These investments contribute to the development of quality human resources which are sought by Sri Lanka’s growing private sector. Education Sector Educo Lanka (Pvt) Ltd, signed an agreement to set up a Higher Education institute at Rajagiriya to provide degree and diplomas in the areas of Engineering, IT, Arts, Business Management & Commerce.  This is an institute affiliated to Monash University, Australia.  Another Company Vinum Academy (Pvt) Ltd., signed an agreement to set up a Hospitality Education Centre to train professionals for the hospitality industry. The value of the investment is U$ $ 1 Million and will be located in Colombo 3. Agriculture Projects Two agricultural projects were signed in March 2016. Cropwiz (Pvt) Ltd., signed agreement to set up a project to cultivate high quality vegetables for the export market.  The facility will be located at Walpita with an investment of US$6.1 million. Watawala Dairy Ltd signed an agreement to set up a Dairy Farm at Hatton.   The investment of the project is US$ 12 million.  This project is important as Sri Lanka imports much of her dairy requirements and can be considered an import substitution project. Mini Hydro projects As power generation is one of the Key areas of investment, BOI encourages investment in this sector.  Thannewatta Mini Hydropower Holdings (Pvt) Ltd., signed an agreement to set up a 1MW mini hydropower plant in Diyatalawa, Badulla. Energy Craft (Pvt) Ltd., signed an agreement to set up 750 Kw Mini-Hydro Power plant in Kitulgala. Moragahaoya (Pvt) Ltd has signed an agreement to set up a 1.5 MW Mini Hydro Power plant in Panvila, Kandy The cumulative investment of these two projects is estimated to be US$4 million. The electricity generated by these projects will be supplied to the National Grid which helps to meet the growing demand for electricity in the country. Hub Operations E F L Hub (Pvt) Ltd signed an agreement to set up a project to undertake offshore business, Front-end services and headquarters operations with an investment value of US $ 1.2 Million. This project is approved under the Commercial hub operations category. Sri Lanka is an ideal location for entrepot trading. Sri Lanka is a very attractive destination for this style of operation due to the Island’s central location in the Indian Ocean. E A Macro Holdings (Pvt) Lt signed to set up a mixed development project in Colombo 3 with an investment of U S $ 55 Million. In the first 3 months of 2016 an estimated cumulative investment US $ 249 Million worth of projects were signed by the BOI.  These represent a total 35 projects and will generate an estimated 4,350 direct employment opportunities.  In addition once started they will contribute towards strengthening Sri Lanka’s export base and introducing new know-howinto in the country.