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

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Presentation on theme: "Ministry of Economic Development Macro Action Plan 2011-2015 1 Presented by P B Jayasundera Secretary, Ministry of Economic Development Under the guidance."— Presentation transcript:

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

2 Making the Vision a Reality 2

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

4 Divineguma – Self Reliant Household Economic Units o 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 III- Small Enterprises – Value added Economy to sustain Phases I & II Phase II- Fisheries & Livestock- Nutritionally balanced consumption Phase I - Agriculture & Food production – Food security 5

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) Divisional Development Committees District Operation and Review headed by the District Secretary 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 7 Inauguration of Divi Neguma Programme

8 Divineguma – Million Household Economic Units 8 Home Garden - Valachchenai  There are 1,356,594 home garden units and 94,011 livestock farming units functioning under divineguma across the whole country  Retired public servants, civil society organisations and women have taken active interest in divineguma Poultry Farming - Horana

9 Divineguma – Million Household Economic Units  Under self employment support program various sectors have been identified  Mobile shops concept was introduced in urban centers by providing leasing schemes. 162 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 9 Self Employment Support Program

10 Divineguma – Million Household Economic Units  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. 10 Divineguma- Initial Push

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

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 2006-2011 14

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

16 Gamaneguma-Empowering each Village Small Irrigation  During 2006- 2011 period 4,699 such small irrigation projects with a cost of Rs 1737.5 Mn have been completed in various villages scattered around Sri Lanka.  716,438 farmers got access to water to cultivate 187,960 acres.  Benefits expanded to environment and fauna and flora. 16 Gonawa wewa, Anuradapura District Ussana Irrigation scheme, Matale District

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 400,467 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 17

18 Karandeniya – Thewaththa Bridge 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 700,000 have gained access to such roads Addaragoda - Kandegoda Road 18

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 19 Karamba Drinking water project - Kalpitiya

20 Gamaneguma-Empowering each Village- Quality housing for the poor  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 Old House Built House

21 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 2,83,876 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  Regardless of who is responsible, economic development requires correction of those and put those projects right to give the full benefits to the people 22  Some of the projects demonstrate substandard quality, incomplete work and inappropriate projects Road in Mutthettugala Nena Sala in Ibbagamuwa Playground in Welgala

23 Distribution of resources under Gamaneguma 2006-2011 23 Water Sanitation

24 24 Access to Basic Services

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

26 26 Samurdhi Expenditure (Rs Mn) 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%

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 { "@context": "", "@type": "ImageObject", "contentUrl": "", "name": "Delivering commitment fid÷re njska, fifkyiska yd fi!kao¾hfhka msreKq.u ms

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) 29

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

31 Pura Neguma – Operational Arrangements National Steering Committee- co chaired by Minister of Provincial Council & Local Govt. and Minister 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) Funding and Supervision- Ministry of Provincial Council & Local Govt. and Ministry of Economic Development 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 - 2011 Phase II- 45,000 km of roads - 2012 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 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 Intra Provincial Roads 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 - 2011 Phase II- 13,000 systems - 2012 Phase III- 15,000 systems - 2013  All irrigation system development projects will be implemented with community participation 36

37 Rehabilitation of Irrigation systems Ampara Baticaloa Polonnaruwa Trincomalee 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 The Galle bus stand which was damaged by tsunami and neglected thereafter has been restored at a cost of Rs 414.7 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 Flagship Interventions 39

40 Need Assessment outcome (in consultation of Members of Parliament- 09.08.2011 and 17.08.2011) 40 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 41

42 Ruhunu Udanaya- Galle, Matara and Hambantota Districts 42

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 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 Palatuwa Gunarathana Vidyalaya Carpeting of Mamandala- Malpettawa Road 45

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

47 Demining Activities in North & East Status as at 30 June 2011 To be cleared 443 SqKm Totally Cleared Area 1,571 SqKm 47

48 District Cumulative (2002 to June 2011) m2 Remaining Hazardous area to be cleared m2 Devices Recovered From2002 to end June 2011 (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 AgencyRs. Mn GoSL2772.88 HALO Trust736.82 DDG692.7 MAG520.56 FSD1022.08 Sarvatra408.61 Horaizan330.11 MMIPE85.62 DASH22.47 Total6591.85 Area Cleared Expenditure in 2009/2010 Demining Activities in North & East 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 50

51 Uthuru Wasanthaya – Selected outcomes Reconstructed Houses Karainagar Giant’s tank - Mannar Reconstructed Adampan MMV  Giant’s tank rehabilitated at a cost of Rs 289.5 Mn to provide water for 9890 Hectares of cultivation  09 Irrigation schemes including Iranamadu are being rehabilitated 51

52 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 Uthuru Wasanthaya- contd. 52

53 Nagenahira Navodaya- Trincomalee, Batticaloa, & Ampara Districts 53

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

57 Sabaragamu Arunalokaya- Kegalle and Ratnapura Districts 57

58 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 Carpeting Gange yaya- Kolonna Road Reconstruction of Galbokka Tank- Embilipitiya Animal Reproductive Center- Imbulpe 60

61 Wayamba Pubuduwa- Kurunegala and Puttlam Districts 61

62 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 Rehabilitation of Pathragala TankCarpeting Mawathagama- Lihiniyagala Road 64

65 Rajarata Navodaya- Anuradapura and Polonnaruwa Districts 65

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

69 Kandurata Udanaya- Nuwara Eliya, Matale & Kandy Districts 69

70 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 72

73 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 75

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 Low Level Road- Kolonnawa Construction of MOH building- Weliweriya 78

79 Development of Recreation and Leisure Facilities Corporate strategy for Department of Zoological Garden (approved by cabinet on 28.09.2010)  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 Sheds in Elephant free living enclosureRenovations to Butterfly park Dehiwala zoo Internal Access Road stores and supplies building Pinnawala 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) 84

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

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 87

88 Capacity creation 88

89 July 2010 Foundation Laying Ceremony May 2011 Opening Ceremony Malu Malu Resort Passikuddah- 60 Room Luxury Boutique Hotel Several new projects are gradually adding to promote Sri Lankan Tourism products

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

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 92 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- B iased towards high spending Tourists  Sri Lankan Tourists- 5 Mn  Indian - 300,000  Chinese- 150,000  Japanese- 50,000  Russian – 100,000  Korean - 50,000  Australian – 100,000  Middle Eastern-100,000  European - 200,000  Transit – 500,000 93

94 Activity Focus  Wild-life and environment– 100,000  Sports - 200,000  Culture - 300,000  Beaches – 300,000  Business - 50,000  Knowledge activities -100,000 (conventions/seminars and conferences) 94

95 Tourists Arrivals 2000-2011 up to August 95

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

97 Investment strategy- Emerging Economy with Wider Boundaries  To raise investment to 33-35 percent of GDP by 2015 to accelerate and sustain economic growth in excess of 8 percent  The composition of total investments to be as follows: 97

98 Gradual push on Investment 98

99 Planned Investment strategy Promotion of investments for i. 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 500-750 Mn) 100

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 102

103 Strategic Development Projects  Under Implementation : Shangri-La Hotel Lanka (Pvt) Ltd. – Colombo - Project - 283 Mn 10 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) 103

104 104 Moving to Emerging Regions (Private Investments) Company NameLocationInvestment (USD Mn) No of Employees Omega Line (Pvt) Ltd.Vavuniya, Rajandrakulum 20990 Orit Trading Lanka (Pvt) Ltd.Vavuniya, Manik- Farm 61800 Timex Garment (Pvt) Ltd.Mannar Industrial Estate 2.3500 Fergasm Grament Ind. (Pvt) Ltd. Mannar Industrial Estate 2.3500 Brandix Apparels Ltd.Batticaloa, Punani9600 MAS Active (Pvt) Ltd.Achchuveli Industrial Estate 3500 Total42.64,890

105 Medium Term Investment Plan- FDI 105

106 Outcome Expected - 2015  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 3 rd phase of Mahinda Chintana in 2016 Phase I – 2006 - 2010 USD 1000 2400 Phase II – 2011- 2015 USD 2700 5000 Phase III - 2016 - 2020 USD 5000 7500/ 10,000 106

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

108 Proposals to be considered  Divineguma to take to the 3 rd 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 108

109 Reforms In the Ministry  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 109 Proposed Divineguma integrated rural development department with three divisional offices in south, central and north Sri Lanka Tourism Authority (SLTA) Present

110 Thank You 110

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