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Ministry of Economic Development Macro Action Plan

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1 Ministry of Economic Development Macro Action Plan 2011-2015
Presented by P B Jayasundera Secretary, Ministry of Economic Development Under the guidance of Hon. Basil Rajapaksa Minister of Economic Development 1

2 Making the Vision a Reality

3 Interfacing Development
Self Reliant Household Economy Divi neguma Backyard cultivation Cottage industries, Animal husbandry Medium and long term crops Empowered Community (Villages) Gama neguma Access to Electricity, Water, Irrigation, Sanitation, Primary Health and Education Livelihood support and Community based economy Puraneguma Community friendly local authority Clean environment Business friendly systems and procedures Developed Townships Regional Growth centers Connectivity through critical infrastructure development Connecting townships Setting up flagship market centers and community facilities Shared Development Strategic Initiatives Emerging Economy National Botanical and Zoological Gardens network Tourism Economy Private Sector development 3

4 Divineguma – Self Reliant Household Economic Units
Servicing million home economies to empower back yard economic activities- Agriculture, Fisheries and Live stock , Small family enterprises etc by Provision of seeds and planting material Development of green houses , seed farms, poly tunnels, promotional nurseries, agro wells, organic fertilizer etc. Encouraging to plant and cultivate at least three coconut plants or other trees of commercial value in each home garden Development of cottage industries, handicrafts, artistic work , handloom enterprises and floriculture villages Promotion of self employment 4

5 Objectives of Divineguma- A three phase graduation
Phase I - Agriculture & Food production – Food security Phase II- Fisheries & Livestock- Nutritionally balanced consumption Phase III- Small Enterprises – Value added Economy to sustain Phases I & II

6 Divineguma - Implementation Mechanism
Cabinet Level Steering Committee (policy guidance) headed by Senior Ministers Operational Working Group headed by the Minister District Development Committee (participation of district political representatives and officials) District Operation and Review headed by the District Secretary Divisional Development Committees Divisional Development Committees headed by the Divisional Secretary Operational Services (Grama Niladari, Samurdhi Niladari, Govi Niladari and Family Health Officer) 6

7 Divineguma – Million Household Economic Units
This initiative was proposed by H.E the president in the 2011 Budget, targeting one million household economies in all Grama Niladari divisions in the country 09 Public awareness meetings at national level and 38 district and divisional level meetings were conducted by the Hon Minister with the participation of Ministers and Secretaries of Line Ministries, provincial representatives and other stake holders Initial supply of seed, guidelines, hand books etc were provided by the Ministry As of now 1,455,187 home economic units under divineguma are functional with predominant engagement in food production Inauguration of Divi Neguma Programme

8 Divineguma – Million Household Economic Units
Home Garden - Valachchenai Poultry Farming - Horana There are 1,356,594 home garden units and 94, livestock farming units functioning under divineguma across the whole country Retired public servants, civil society organisations and women have taken active interest in divineguma

9 Divineguma – Million Household Economic Units
Self Employment Support Program Under self employment support program various sectors have been identified Mobile shops concept was introduced in urban centers by providing leasing schemes vehicles have been distributed initially in Colombo. This will be popularised in other major townships based on the demand Pavement businesses have been re-arranged in Pettah, Nugegoda and Galle

10 Divineguma – Million Household Economic Units
Divineguma- Initial Push The first stage concentrated heavily on agriculture, livestock and planting for home gardens. Divineguma program will be extended to cover cottage industries promoting local production of gift items, local textiles, handicrafts, artistic creations, spices, bricks , clay and cement based building material etc to meet the increased demand arising from the development of various industries such as tourism , apparel , construction Industries. Technology transfer through the initiatives of the Ministry of Technology and Research.

11 Services at door step EMPOWERED FAMILY Grama Niladari 25 Households
Samurdhi Development Assistant Agriculture Research & Productivity Assistant 50 Households Family Health Officer 100 Household community Technical and extension services Deserving Households

12 Gamaneguma – Empowering Each Village
Provision of rural infrastructure to have access to Electricity, Water, Sanitation , Communication, Roads, Minor irrigation Filling gaps – Maternity and Health Care Centers, Pre-schools, Market places, storages etc on a need basis Livelihood development – One Village-One Crop, Agriculture, Livestock, Fisheries, Trade, Self employment Restoration of abandoned/substandard projects 12

13 Gamaneguma- Operational Arrangements
Overall National Program – Ministry of Economic Development District Development Committees (Need assessment and prioritisation) Divisional Development Committees (Identification of projects, programs and budget) Community Level Identification Implementation by Community Participation 13

14 Gamaneguma

15 Gamaneguma – Total Solution
RESOURCEFULL VILLAGE Access to roads Access to electricity Access to safe drinking water and sanitation Access to small irrigation Quality health and education Livelihood development

16 Gamaneguma-Empowering each Village Small Irrigation
During period ,699 such small irrigation projects with a cost of Rs Mn have been completed in various villages scattered around Sri Lanka. 716,438 farmers got access to water to cultivate 187, acres. Benefits expanded to environment and fauna and flora. Ussana Irrigation scheme, Matale District Gonawa wewa, Anuradapura District 16

17 Matale- Bogahalanda Electricity Project
Gamaneguma-Empowering each Village Electricity 7,785 rural electrification projects have been implemented with a cost of Rs 2,370 Mn These schemes have provided access to electricity to 400, households It has benefited rural schools, hospitals, religious places and access to IT and computers in rural Sri Lanka Electricity has promoted rural investment, storages, small industries and agricultural processing Matale- Bogahalanda Electricity Project 17

18 Karandeniya – Thewaththa Bridge Addaragoda - Kandegoda Road
Gamaneguma-Empowering each Village- Access to quality road 61, 226 projects consisting of concrete roads, small bridges and improvement to rural and agricultural roads have been completed with a cost of Rs 26,124 Mn A population of about 700, have gained access to such roads Karandeniya – Thewaththa Bridge 18 Addaragoda - Kandegoda Road

19 Gamaneguma-Empowering each Village- Community water
2,864 projects with each project having capacity of 5000 liters have been completed with a cost of Rs 1,133.3 Mn A population of 504,200 have gained access to quality drinking water Access to quality drinking water has improved health standard of the rural community Water Supply Scheme - Adampan Karamba Drinking water project - Kalpitiya 19

20 Gamaneguma-Empowering each Village- Quality housing for the poor
Old House Built House 18,950 houses have been built through Diriya Piyasa (Samurdhi Housing) at a cost of Rs 1,201 Mn Toilets ,and basic facilities (access to quality water) have been provided to improve low income households Cadjan thatched and temporary houses are being converted to quality houses 20

21 Cinnamon chopping- Ratnapura
Gamaneguma-Empowering each Village Livelihood Development 14,341 livelihood projects targeting agricultural processing , livestock , handicraft, building material, light engineering, carpentry etc have been promoted. This has contributed to high income and new employment for 2,83, people. A number of households have emerged as entrepreneurs. MOED proposes to form Samurdhi Entrepreneurs Chamber (SEC) to harness an enterprising society in villages. Cinnamon chopping- Ratnapura 21

22 Addressing substandard work
Some of the projects demonstrate substandard quality, incomplete work and inappropriate projects Regardless of who is responsible, economic development requires correction of those and put those projects right to give the full benefits to the people Playground in Welgala Nena Sala in Ibbagamuwa Road in Mutthettugala

23 Distribution of resources under Gamaneguma 2006-2011
Sanitation Water

24 Access to Basic Services

25 Achievements – country witnessed a marked reduction in poverty in 5 years
Poverty Reduction

26 The reduction in poverty is reflected in the number of Samurdi beneficiaries. Despite the reduction in beneficiaries, expenditure on Samurdhi is maintained to provide enhanced assistance to deserving people. Even if we assume doubled the poverty head count at 17.2%the no of people receiving benefits account for 32.4% Samurdhi Expenditure (Rs Mn)

27 The strength Samurdhi allowance scheme has generated compulsory savings of Rs 17 Bn of which, Rs 3 Bn is on reserve It has promoted 1043 functioning Samurdhi Banking Societies and generated voluntary savings of Rs 15 Bn Savings habits have promoted leasing and other financing instruments supporting Samurdhi livelihood activities and enterprises Divineguma and Gamaneguma have created the opportunities for them to move out of poverty trap 27

28 Delivering commitment
“fid÷re njska, fifkyiska yd fi!kao¾hfhka msreKq .u ms<sn| ud olsk isyskh “.u keÕ=u” f,i h:d¾:hla njg m;a lrus' oYl .Kkdj ;=< wfma oEia bosrsmsgoS u msrsySug ,la jq .u mqk¾cSjkh lrus'” Mahinda Chintana- Vision for the Future-2005

29 Pura Neguma- Empowering Local Authorities- Two initiatives to finance from ADB credit facility
Local Authority Empowerment Program – Uthuru Wasanthaya and Nagenahira Navodaya – Local Authority Empowerment Program – Local Government & Provincial Council Ministry (proposed for the pradesheeya sabhas)

30 Pura Neguma- Northern sector
Canal System Mosque Houses Community & Health Centre Children s’ Park

31 Pura Neguma – Operational Arrangements
National Steering Committee- co chaired by Minister of Provincial Council & Local Govt. and Minister of Economic Development Funding and Supervision- Ministry of Provincial Council & Local Govt. and Ministry of Economic Development Implementation - by eligible Pradesheeya Sabhas (committed to simplified systems and procedures, clean environment and community infrastructure, Sathi pola and basic needs improvement) 31

32 Implementation of 2011 Budget proposal- Sathi pola
2011 Budget proposed to modernise sathi pola, three wheel stations, mobile shops, small boutiques around religious and common places to add value to small timers at least cost These initiatives will also provide openings for direct market access to producers and consumers without intermediaries Does not involve heavy overheads and expenditure 32

33 Balanced Regional Development – Interfacing by Ministry of Economic Development
Priorities – 3,000 km Intra Provincial Road Rehabilitation Program 30,000 Minor Tanks and Irrigation Rehabilitation Program Flagship common facilities- Galle Bus Stand Construction of shops for pavement hawkers Relocation facilities for displaced markets Selected Economic Development Initiatives- Dutch Canal Rehabilitation to support Tourism corridor from Wattala to Negombo (old tourism resort area) Small townships 33

34 Intra Provincial Roads
Three year program has been designed to restore intra provincial roads to fill gaps in road network development program implemented by RDA , Provincial councils and District secretariats All 25 districts and 324 divisional secretariat areas will be reached simultaneously in three phases Phase I- 30,000 km of roads Phase II- 45,000 km of roads Phase III- 60,000 km of roads- 2013 All roads will be carpeted with concreting supports, drainage and culverts and natural water ways 34

35 Intra Provincial Roads
Dambagalla Medagama Road (14.440km) Madagama DSD in Monaragala District Expenditure Rs. 6,191,154.52 Warakagoda Frosester Ferry Road (3km) Bulathsinghala in Kaluthara District Project Cost Rs. 30 Mn Bonagala Rukgahawila Road (3.8km) Attanagalla DSD in Gampaha District Project Cost Rs. 38 Mn 35

36 Minor Tanks and Irrigation
Three year program has been designed to restore rural irrigation systems and abandoned systems to fill gaps in irrigation network development program implemented by the Department of Irrigation , Provincial Authorities and Agrarian Service Department Agricultural areas will be reached simultaneously in three phases during off cultivation periods Phase I - 12,000 systems Phase II- 13,000 systems Phase III- 15,000 systems All irrigation system development projects will be implemented with community participation 36

37 Rehabilitation of Irrigation systems
Ampara Baticaloa Trincomalee Polonnaruwa 37

38 Flagship Interventions
Development by various agencies have created gaps by not addressing critical common facilities (maternity clinics, bus stations, market for displaced small businesses, drainage systems ) required to maximise full benefits of Economic Development 38

39 Flagship Interventions
The Galle bus stand which was damaged by tsunami and neglected thereafter has been restored at a cost of Rs Mn with facilities for shopping and rest areas Model maternity clinics are being promoted with private sector support With the urban modernisation programs, small traders occupying un authorised areas are being provided with modern facilities for their self employment activities. Two such facilities in Pettah, Nugegoda have been completed at a cost of Rs 41.0 mn 39

40 Need Assessment outcome (in consultation of Members of Parliament- 09
Need Assessment outcome (in consultation of Members of Parliament and ) Need assessment carried out in consultation with Members of Parliament gave higher priority for unattended roads and irrigation

41 Regional Growth Initiatives
Ruhunu Udanaya Uthuru Wasanthaya Nagenahira Navodaya Sabaragamu Arunalokaya Kandurata Udanaya Wayamba Pubuduwa Rajarata Navodaya Pubudamu Wellassa Batahira Ran Aruna Regional Growth Initiatives 41

42 Ruhunu Udanaya- Galle, Matara and Hambantota Districts

43 Ruhunu Udanaya- Interfacing with Line Agencies and Provincial Council to integrate Ruhuna Economy with following Promote Economic Activities revolving around Magampura port city (air port, port ) Develop connectivity between Katunayake – Hambantota corridor to benefit the surrounding Rural Economy Promote resort development for tourism and construction of Galle Port as a Tourism Port Support Tea and Cinnamon cultivation and promote value added industrial activities 43

44 Transform Koggala Export Processing Zone to an Industrial Township
Ruhunu Udanaya- contd.. Transform Koggala Export Processing Zone to an Industrial Township Assist Ruhuna University to drive Knowledge Based Economic Activities with emphasis on Medicine/Engineering Develop International sports facilities 44

45 Ruhunu Udanaya – selected outcomes
Carpeting of Mamandala- Malpettawa Road Palatuwa Gunarathana Vidyalaya 45

46 Uthuru Wasnthaya- Jaffna, Kilinochchi, Mullativu, Mannar & Vavuniya Districts

47 Demining Activities in North & East
Status as at 30 June 2011 Totally Cleared Area 1,571 SqKm To be cleared SqKm 47

48 Demining Activities in North & East
Area Cleared Expenditure in 2009/2010 District Cumulative (2002 to June 2011) m2 Remaining Hazardous area to be cleared m2 Devices Recovered From2002 to end June (AT, AP & UXOs) Jaffna 33,004,149 13,130,413 196,615 Killinochchi 571,523,791 39,494,991 196,702 Mullaitivu 142,824,567 184,583,453 69,561 Vavuniya 174,178,796 31,494,489 90,348 Mannar 276,032,258 113,303,215 94,690 Trincomalee 95,232,735 16,266,644 4,428 Batticaloa 235,468,492 18,888,445 22,765 Ampara 42,876,881 24,026,481 464 Anuradhapura 174,308 2,178,935 2,584 Polonnaruwa 48,279 157,074 14 Total 1,571,364,255 443,524,140 678,171 Agency Rs. Mn GoSL HALO Trust 736.82 DDG 692.7 MAG 520.56 FSD Sarvatra 408.61 Horaizan 330.11 MMIPE 85.62 DASH 22.47 Total 48

49 Uthuru Wasanthaya-Activity Plan Interfacing with Line Agencies and Provincial Council to integrate Northern Economy with following De-mining program Resettlement and Livelihood development Restoring public service delivery – Health Education Rehabilitation and Skills Development Civil administration and Judicial services Strengthening the community – Local Government Services Co-operatives Religious places Samurdhi Restoration of Banking , Financial Institutions and Trade and Commerce 49

50 Uthuru Wasanthaya- contd..
Rehabilitation of Rural and Provincial infrastructure – Electricity Irrigation Roads Community Water Supply Reconstruction of Highways Railways Ports Fishery harbours Major irrigation Water supply and Drainage systems Common facilities and Townships National schools Hospitals Universities Investment promotion to attract Private Investment in Agriculture Manufacturing Tourism and services

51 Uthuru Wasanthaya – Selected outcomes
Karainagar Reconstructed Adampan MMV Reconstructed Houses Giant’s tank rehabilitated at a cost of Rs Mn to provide water for 9890 Hectares of cultivation 09 Irrigation schemes including Iranamadu are being rehabilitated Giant’s tank - Mannar 51

52 Uthuru Wasanthaya- contd.
National- A- 9 , A 32 Highways Jaffna Teaching Hospital Jaffna water supply Yoda wewa, Iranamadu Vocational Training Railway KKS harbour Palali Airport Stadium Jaffna University 52

53 Nagenahira Navodaya- Trincomalee, Batticaloa, & Ampara Districts

54 Nagenahira Navodaya-Activity Plan Interfacing with Line Agencies and Provincial Council to integrate Eastern Economy with following Restoration of housing for resettlement Strengthening Social infrastructure Restoration of Economic infrastructure Electricity Railways Roads Water supply and Sanitation Major irrigation and Flood protection Reconstruction of bridges to re establish connectivity 54

55 Nagenahira Navodaya- contd..
Promoting agricultural base for surplus production of Paddy, Maize, Fisheries, Livestock Private sector investment promotion in Storages, Marketing, Processing ( paddy milling), Fruit and Export agriculture zone in Maduru Oya Investment promotion in industries in Cement, Mineral sand and Industrial zones Promoting Tourist resorts , Beaches, Wild life and Bird sanctuaries 55

56 Re construction of Irakkandy Bridge
Nagenahira Navodaya -selected outcomes Renovation of Anchorage Trincomalee Renovation of Mayadunna Vidyalaya- Ampara Re construction of Irakkandy Bridge Fish Market - Baticaloa 56

57 Sabaragamu Arunalokaya- Kegalle and Ratnapura Districts

58 Improvement of National and Provincial roads
Sabaragamu Arunalokaya – Interfacing with Line Agencies and Provincial Council to integrate Sabaragamuwa Economy with following Improvement of National and Provincial roads Construction of Urban water supply schemes Rehabilitation of Chandrika Wewa Horticultural centers in Kuruwita, Ratnapura and Kegalle 58

59 Sabaragamu Arunalokaya – contd..
Replant and cultivate Plantation Crops Develop Ratnapura as a Gem cutting and processing center Promote Echo Tourism and Leisure activities, centered around Pinnawala Zoological Garden and Elephant Orphanage Develop Sabaragamuwa University and use as a resource center for regional development 59

60 Sabaragamu Arunalokaya- Selected outcomes
Elephant Orphanage - Pinnawala Animal Reproductive Center- Imbulpe Reconstruction of Galbokka Tank- Embilipitiya Carpeting Gange yaya- Kolonna Road 60

61 Wayamba Pubuduwa- Kurunegala and Puttlam Districts

62 Rehabilitation and expansion of Provincial and National Road network
Wayamba Pubuduwa – Interfacing with Line Agencies and Provincial Council to integrate Wayamba Economy with following Rehabilitation and expansion of Provincial and National Road network Diversion of Deduru Oya and Expansion of Irrigation Facilities- Deduru Oya (to feed 200 small tanks and supply water for 30,000 hectares of new land for cultivation) Development of Kalpitiya Tourist Resort and Wilpattu National Park to develop Tourism 62

63 Wayamba Pubuduwa- contd..
Securing and restoration of Cultural and Archeological sites (Dambadeniya, Paduwasnuwara ,Yapahuwa and Thonigala) Development of Paddy, Coconut, Fruits and Vegetable cultivation and Inland fisheries and Aquatic resources Project Wayamba University as a resource center for Agriculture ,Food technology and Business management 63

64 Wayamba Pubuduwa – selected outcomes
Carpeting Mawathagama- Lihiniyagala Road Rehabilitation of Pathragala Tank 64

65 Rajarata Navodaya- Anuradapura and Polonnaruwa Districts

66 Rajarata Navodaya – Interfacing with Line Agencies and Provincial Council to integrate Rajarata Economy with following Rehabilitation of all major irrigation systems and down stream facilities Transform the un irrigated part of Rajarata through Moragahakanda Irrigation Project to provide water to Weli Oya and Madawachchiya 66

67 Rajarata Navodaya – contd..
Establish Road and Railway connectivity to Anuradapura to make it a hub city Develop Anuradapura sacred city and preserve archeological sites Promote paddy, maize, fruits, vegetables, inland fisheries and food processing facilities Rajarata University to become a resource center 67

68 Rajarata Navodaya- Selected outcomes
Rehabilitation of Alaadioodaya Canal Rehabilitation of Poodoor Anicut - Thamankaduwa 50 ft long Bridge in Divulwewa Pre school - Dimbulagala 68

69 Kandurata Udanaya- Nuwara Eliya, Matale & Kandy Districts

70 Promote Kandy sacred city
Kandurata Udanaya – Interfacing with Line Agencies and Provincial Council to integrate Kandurata Economy with following Promote Kandy sacred city Develop Nuwara Eliya , Kandy and Dambulla as Tourism cities Develop Botanical Garden network Peradeniya University township Conservation of Hydro electricity resources in the province 70

71 Kandurata Udanaya – Selected outcomes
Tourist Attractions Wewalawewa Elevated Irrigation 71

72 Pubudamu Wellassa- Badulla & Monaragala Districts

73 Uva Wellassa University township
Pubudamu Wellassa - Interfacing with Line Agencies and Provincial Council to integrate Wellassa Economy with following Diversion of Uma Oya Uva Wellassa University township Development of Tea, Rubber, Paddy and Vegetable plantation Connect the land locked province to South and East 73

74 Pubudamu Wellassa – Selected outcomes
Eladaluwa- Mudunpita Road Moretota- Katugaha Road 74

75 Batahira Ran Aruna- Colombo, Kalutara and Gampaha Districts

76 Batahira Ran Aruna – Interfacing with Line Agencies and Provincial council to integrate Western Economy with following Develop Floriculture Zones and Tropical fruit Zones Promote Small holder Agriculture and develop Coconut plantation and Fisheries industry Introduce under-passes and by-passes to remove city congestion and facelift urban townships Develop Dutch Canal and associated area as a Recreation and Tourism Belt 76

77 Batahira Ran Aruna – contd..
Develop Emerging Economic activities associated with Air port, Express way, Outer Circular Highway, Southern Expressway and Associated townships (Kerawalapitiya, Peliyagoda, Kadawatha, Kaduwela and Kottawa etc) and The Port City and Colombo Develop ancillary facilities around Fish market and Vegetable market in Peliyagoda Transform Export Processing Zones in Katunayake, Biyagama, Wathupitiwela, Malwatta and Horana into new townships and ease the road congestion Promote Knowledge Economic Centers linking to National Universities located in the province 77

78 Batahira Ran Aruna -Selected outcomes
Construction of MOH building- Weliweriya Construction of Low Level Road- Kolonnawa 78

79 Development of Recreation and Leisure Facilities
Corporate strategy for Department of Zoological Garden (approved by cabinet on ) Establishment of a safari park in a 500 acre land at Ridiyagama Setting up of a new Zoological garden in Kegalle Modernisation of Dehiwela Zoological Garden to provide breeding centers , better waste disposal system and improve internal access roads and staff quarters. Encourage industries to supply local products for shopping, restaurants and entertainment to popularise zoological facilities among both local and foreign tourists Upgrade and maintain sorrounding infrastructure 79

80 Zoological Gardens(Dehiwela & Pinnawela) Visitors Arrival (No), Earnings (Rs Mn)

81 Department of National Zoological Gardens- New development initiatives
Safari Park - Hambantota Construction of Animal Hospital Improvements of Dehiwela Zoo Improving access roads including for differently abled visitors Developments in Elephant Orphanage -Pinnawala Construction of Feeding hut 81

82 Dehiwala zoo Pinnawala 82 stores and supplies building
Renovations to Butterfly park Sheds in Elephant free living enclosure Pinnawala stores and supplies building Internal Access Road 82

83 Development of Recreation and Leisure Facilities
Corporate strategy for Botanical Gardens Improvement of common facilities (toilets , reception center, restaurants, shopping , access roads and staff quarters) of the existing Botanical Gardens at Peradeniya, Gampaha, Hakgala, Ganewatta etc Development of new Botanical Gardens in Hambantota and Avissawella Promote horticulture zones , flower shops and household and micro cultivation for exports Create small urban Botanical Gardens/ forestries in selected government lands to add environment value to emerging cities 83

84 Botanical Gardens Visitors Arrival (No), Earnings (Rs Mn)

85 New Botanic Gardens in Avissawella and Hambantota
Water Garden, Avissawella Cactus Collection, Hambantota 85 Orchid collection, Hambantota Great Lawn, Avissawella

86 Tourism Economy Reforms –
Setting up a single authority for promotion and regulation of tourism in place of prevailing multiplicity of organisations Tourism promotions to be collectively undertaken by Tourism Development Authority, BOI, Tea Board, EDB, Sri Lankan Air Line and Private sector TDA promotional offices to be attached to Sri Lankan missions abroad and linked to Sri Lankan Air Line country offices. 86

87 Tourism Economy-Key Initiatives
Promotion and Development– Development of language skills in Chinese, Japanese and Russian Etc Vocational Skills development for tourism trade One stop approval process Simplified land alienation on leases and based on up front payments Promotion of Home-stay tourism Refurbish old heritage homes & walauwas to accommodate elite high spending tourists Promotion of lesser known local tourist destinations Upgrading of common facilities in tourist stopovers (toilets, rest areas, shopping) Sponsorship of coffee table books , specialised events and preparation of tourist s’ guides and hand books etc. Attraction of Internationally renowned Hotel Chains Integrate with diversified economic activities to increase backward integration (harvesting, crafting, fishing, cultural and religious activities) Promotion of museums, temples, churches , heritage sites. Regulations – Minimum rate for 5 star hotels Strict enforcement of standards

88 Capacity creation

89 8989 Several new projects are gradually adding to promote Sri Lankan Tourism products                                                  Malu Malu Resort Passikuddah- 60 Room Luxury Boutique Hotel July 2010 Foundation Laying Ceremony May Opening Ceremony

90 Tourism Zones Tourism Zones
Jaffna Kuchcheweli Sigiriya Polonnaruwa Kalpitiya Anuradapura Passikuddah Hill Country Negombo Arugambay Colombo Ratnapura Yala Bentota Hambantota Galle 90

91 Developing Tourism Corridors through private investments
Passikudah Kalpitiya Kuchchuveli Negombo Yala Kandy- Dambulla- Nuwara Eliya Anuradapura Bentota - Hikkaduwa 91

92 New markets India China Japan South Korea Russia
Australia ( far east) – Colombo- Middle East Europe linked markets- London,Paris, Frankfurt, Zurich and linked to North American markets Networking and market penetration through Sri Lankan Air Lines / Mihin Lanka fleet expansion to 20 air crafts by 2011 and 30 air crafts by 2013 and facilitate other international air lines to promote Sri lanka as a destination. Direct flights to India, Japan, China, Russia, Europe, Middle East, Philippines, Indonesia and Bangladesh Developed and Emerging Economies in Asia will be the key targeted markets. (Per capita income and upper income families in these Economies are on the rise)

93 Market Focus- Biased towards high spending Tourists
Sri Lankan Tourists- 5 Mn Indian ,000 Chinese ,000 Japanese ,000 Russian – 100,000 Korean ,000 Australian – 100,000 Middle Eastern- 100,000 European ,000 Transit – 500,000 93

94 Activity Focus Wild-life and environment– 100,000 Sports - 200,000
Culture ,000 Beaches – ,000 Business ,000 Knowledge activities ,000 (conventions/seminars and conferences)

95 Tourists Arrivals 2000-2011 up to August

96 Annual Room Occupancy Rate
(Graded) Receipts from Tourists (Rs Mn)

97 Investment strategy- Emerging Economy with Wider Boundaries
To raise investment to percent of GDP by to accelerate and sustain economic growth in excess of 8 percent The composition of total investments to be as follows:

98 Gradual push on Investment

99 Planned Investment strategy
Promotion of investments for Basic industries – Cement (USD 450 Mn), Tyre (USD 75Mn), Steel (USD 75Mn) , Textiles (USD 100 Mn) , Pharmaceutical (USD 200 Mn) , Agriculture (USD 50Mn) , Dairy and milk food (USD 500 Mn) to replace imports Total import of these items is USD 1500 Mn ii. Tourism (USD 2500 Mn) , IT/BPO (USD 100 Mn) , Branded garments and Logistic hubs (USD 200 Mn ) and Gems (USD 50 Mn) Potential additional foreign exchange earning over next 3-5 years is around USD 4,000 Mn 99

100 Planned Investment strategy contd..
Promotion of investments for iii. Exports of value added Tea (USD 100 Mn), Rubber (USD 100 Mn), Cinnamon and spices (USD 100 Mn) and Handlooms (USD 50 Mn) Export earning potential is around USD 2,000 Mn and employment potential is huge iv. The development of emerging regions under the regional development initiatives (promote domestic investment) v. Commercial infrastructure Port terminals (USD 1000 Mn), Renewable energy and Power generation (USD 1000 Mn), Waste disposal (USD 500 Mn), Industrial zones / IT parks (USD 200 Mn) Etc vi. Urban Property development (USD Mn)

101 Incentives for Investment
Applicable concessions – 3 year tax holiday commencing from the date of commercial operation for investments within Rs 50 – 300 Mn 5-7 year tax holiday commencing from the date of commercial operation for investments over USD 3 Mn Up to 25 year tax holiday for strategic investments Deferment of VAT and exemption of custom duty, PAL during project implementation period to reduce up front cost on capital BOI Law to provide Exchange control and Visa concessions for FDIs Simplified Import and Export control system under Import control Gazette of September 2011 101

102 Barriers to Investments
Non compliance by line agencies to investment decisions Time consuming approval process (from Cabinet to pardesheeya sabhas and other involved agencies) Indecisive decision making process involved in business disputes/frustrations at Customs, Tax Dept., Exchange control, Import control No proper follow up by officials in institutions (BOI,UDA, TDA ) Absence of accepted pricing formula and guaranteed procurement arrangement which create uncertainties

103 Strategic Development Projects
Under Implementation : Shangri-La Hotel Lanka (Pvt) Ltd. – Colombo - Project Mn acre Land - USD 125 Mn Shangri-La Investment Lanka (Pvt) Ltd – Hambantota- USD 120 Mn Petroleum Exploration- Cairn Lanka (Pvt) Ltd. – Mannar – USD 125 Mn Expansion of Ceylon Steel Corporation (CHICO) – Athurugiriya- USD 70 Mn Pipe Line Projects : Almost ready to kick-off Mixed Development Project (CATIC/AVIC) – Colombo- USD 450 Mn Colombo South Container Terminal – USD 500 Mn 2X250 MW Coal Power Plant – Trincomalee –USD 500 Mn Magampura Port City Investment projects –USD 600Mn (Sugar refinery, fertiliser and chemicals ,cement and vehicle assembly)

104 Moving to Emerging Regions (Private Investments)
Company Name Location Investment (USD Mn) No of Employees Omega Line (Pvt) Ltd. Vavuniya, Rajandrakulum 20 990 Orit Trading Lanka (Pvt) Ltd. Manik- Farm 6 1800 Timex Garment (Pvt) Ltd. Mannar Industrial Estate 2.3 500 Fergasm Grament Ind. (Pvt) Ltd. Brandix Apparels Ltd. Batticaloa, Punani 9 600 MAS Active (Pvt) Ltd. Achchuveli Industrial Estate 3 Total 42.6 4,890

105 Medium Term Investment Plan- FDI

106 Outcome Expected Emerging Middle Income Economy status with USD 5000 Economy Self Reliant Household Economy Empowered Villages & Poverty free Sri Lanka Position the Country to enter the 3rd phase of Mahinda Chintana in 2016 Phase I – USD Phase II – USD Phase III USD / 10,000

107 Position the Country to enter the 3rd phase of Mahinda Chintana
Outcome expected -2015 Self Reliant Household Economy Empowered Villages and Poverty Free Sri Lanka Emerging Middle Income Economy status with USD 5000 Economy Position the Country to enter the 3rd phase of Mahinda Chintana

108 Proposals to be considered
Divineguma to take to the 3rd Phase for value added activities Rationalise wide range of Samurdhi allowances and promote micro credit through Samurdhi Banking societies to empower Divineguma and self reliant households Gamaneguma to target 20,000 small villages to fill gaps in road access, drinking water, irrigation etc Strategise a marketing campaign for new Sri Lanka that promotes Exports , Tourism and Investment Promote 20 Apparel / Handloom factories in emerging districts Pursue FDI through already established foreign investors

109 Reforms In the Ministry
Present Proposed Divineguma integrated rural development department with three divisional offices in south, central and north Samurdhi Authority of Sri Lanka Department of Commissioner General of Samurdhi Department of Up- Country Peasantry Rehabilitation Southern Development Authority Uda Rata Development Authority Department of National Zoological Garden Department of National Botanical Garden Sri Lanka Tourism Promotion Bureau Sri Lanka Tourism Development Authority Sri Lanka Convention Bureau Sri Lanka Institute of Tourism & Hotel Management Board of Investment of Sri Lanka (BOI)- with full time DG Sri Lanka Tourism Authority (SLTA)

110 Thank You 110

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