1. Investment Opportunities in Sri Lanka

2. Agenda 1.Brief profile of Sri Lanka 2.Infrastructure facilities available for investments 3.Investment opportunities 4.Business environment 5.BOI and BOI incentives 6.Discussion

3. 1. Brief profile Total population20.2 Mn. Literacy rate90.8% Male92.7% Female89.1% Life expectancy Male68 Female75.6 Per capita GDP (At Market Prices)2,014 US$ Key economic indicators - 2008 Source : Central Bank of Sri Lanka, 2008

4. Brief profile contd… Gross Domestic Product (GDP) growth rate in Sri Lanka 2002-2007 Source : Central Bank of Sri Lanka

5. US$ Mn. FDI Trends (2001-2008) Brief profile contd… Source : Board of Investment of Sri Lanka

6. 2. Infrastructure facilities Passenger movement 5 Mn /Per annum Cargo movement 250,000 tons / Per annum Highest number of flights to India from any country Colombo Airport

7. Colombo South port development (under construction) 5 days transit time to Dubai Centrepoint on the East/West sea routes Gateway to the Indian subcontinent World Port Ranking No. 1 in South Asia Total container throughput 4 Mn. TEUs Transshipment cargo 70% Colombo Port Infrastructure facilities contd… Capacity to be increased - 11.7 million by 2012

8. Hambantota port development A gas-fired power plant project A ship repair unit A container repair unit An oil refinery A bunkering terminal Infrastructure facilities contd… Development cost - US$ 1 billion. The project includes: Nearly 150, 000 ships passing Sri Lanka annually Sri Lankas strategic location in the sea routes are important in connecting East to the West.

9. Telecommunications Infrastructure facilities contd… –SEA-ME-WE III –SEA-ME-WE IV (Connectivity Bandwidth - 1.32 terabits per second) Sri Lanka is being developed as regional hub for telecommunications Fastest growth sector driven by public private partnership Development of faster and more efficient technologies Fiber Optic Cables with SEA-ME-WE IV fiber cable network

10. Power 4. Pipeline projects Trincomalee Coal Power Project LNG Power & LNG Terminal India Sri Lanka high-tension Power Connection 1. Main power sources - Hydro - 52% - Thermal - 48% 2. Projects under construction Norochcholai Coal Power Project Upper Kothmale Hydro Power Project Infrastructure facilities contd… 3. Future requirements Total existing capacity- 2650 MW Additional capacity by 2015 - 2500 MW

11. Industrial/Free Trade Zones 12 industrial zones with all infrastructure facilities administered by the BOI Infrastructure facilities contd…

12. Nawaloka Hospital, Colombo Health Care up to International Standards Apollo Hospital, Colombo Infrastructure facilities contd…

13. Educational institutions of international standards Infrastructure facilities contd…

14. Prestigious Hotels / Leisure Facilities Golf Courses Hilton, Colombo Infrastructure facilities contd…

15. Modern Office Complexes World Trade Center, Colombo Infrastructure facilities contd…

16. Luxury Residential Apartments Havelock City, Colombo Infrastructure facilities contd…

17. Finance and Banking Standard Chartered, Colombo Colombo Stock Exchange Infrastructure facilities contd…

18. 3. Investment Opportunities a)Garments, Textile & Apparel b)Software Industry c)BPO/KPO d)Gems & Jewellery e)Tourism f)Agriculture & Dairy Farming g)Fisheries

19. Garments, Textile & Apparel Developed into a sophisticated industry from mere tailors to total solutions specialists. Garments without guilt. Approximately 44% of the total exports. Pioneer in green factories. Global brands/buyers: Victorias Secret Gap Marks & Spencer Triumph 3. Investment Opportunities contd…

20. Software Industry A highly literate workforce with a solid mathematical background. Easily trainable & strong analytical skills Low levels of attrition. High linguistic adaptability Value of IT industry exports – 2008 - US $ 250 million – Target for 2012 - US $ 1 billion Leading companies include Millennium Technologies, Virtusa, IFS, hSenid 3. Investment Opportunities contd… Orion City IT Park, Colombo

21. BPO/KPO Our Success stories HSBC WNS OfficeTiger/ RR Donnelly Amba Research Worlds 2 nd largest pool of UK-licensed Financial Accountants Connected to SEA-ME-WE-4 fiber optic network 3. Investment Opportunities contd…

22. Gems & Jewellery Emerging precision gem cutting and finishing center in the world. 75 out of 200 varieties of gem stones are found in Sri Lanka. Sapphire capital of the world. Duty free facility on import of gems. Value of exports in 2008 - US $ 530 million. Target for 2013 - US $ 1 billion. Main markets are USA, Switzerland, Thailand, Hong Kong, Japan, France, Germany, Singapore and UAE. 3. Investment Opportunities contd…

23. Tourism Focus on upmarket tourism Increasing regional tourist arrivals Access to diversified attractions (bio-diversity, cultural sites, wild life reserves and beaches). Current room capacity- 14,700 rooms. Target for 2015- 25, 000 rooms. Opportunities for investors Tourism related infrastructure Theme parks Golf courses 3. Investment Opportunities contd…

24. Tourism Development - Northern and Eastern provinces Trincomalee - Ocean City Arugam Bay- Resort for surfing Pasikudah - National Holiday Resort Jaffna - Beach Resort Apartments Kalpitiya - Beach Resort Island Tourism 3. Investment Opportunities contd… Mannar Ampara North East Trincomalee Baticaloa Jaffna Kilinochchi Mullattivu Vauniya

25. Agriculture & dairy farming Diverse agro climatic zones Processing and value addition opportunities for export market eg: Middle East and Japan Control agriculture, green house and drip irrigation technology. Large lands in Eastern Province. Opportunities in local dairy market Imports - US $ 300 million. Zero tariff for agricultural products to India & Pakistan and European Union. 3. Investment Opportunities contd…

26. Rubber based industries Worlds largest manufacturer of solid rubber tyres. Renowned for high quality crepe rubber. Leading international glove supplier. Our Success stories Ansell - Australia CEAT - India Loadstar - Belgium Trelleborg - Sweden Investment Opportunities contd…

27. Fisheries Investment opportunities - Deep Sea Fishing & Processing - Aqua-culture Development of New Port/ Fishery harbours. Export to Europe ( with GSP+) and Japan & Singapore Investment Opportunities contd… Maritime Zones of Sri Lanka

28. 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. 4. Business environment

29. Investment Protection (over 20 Countries) Australia Canada China France Germany India Indonesia Iran Japan Korea Malaysia Pakistan Singapore Thailand UK USA Business environment contd…

30. Double Taxation Relief (over 30 countries) Canada China France Germany India Iran Japan Jordan Kuwait Korea Malaysia Pakistan Saudi Arabia Singapore Thailand UAE UK USA Business environment contd…

31. Special Tariff Preferences for Sri Lankan products Indo-Lanka FTA - 4,232 products (zero duty) Pakistan-Sri Lanka FTA - 4,686 products (zero duty) EU GSP + - 7,200 products (zero duty) Business environment contd…

32. 5. Board of Investment of Sri Lanka & BOI incentives Established in 1978. Functions under the Ministry of Enterprise Development and Investment Promotion. Government authority to promote and approve foreign investments. First contact point for foreign investors.

33. BOI incentives Export oriented manufacturing & services. Tourism & Leisure. Agriculture & food processing. IT, IT enabled services & BPO. Education & Training. 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. 3 to 15 Year Tax Holiday

34. BOI Incentives contd…. Export Oriented Manufacturing Export Oriented Services Infrastructure IT Enabled Services Agriculture 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

35. Major Investors by Country (2008) Country FDI (US$ Mn.) 1. Malaysia150 2. India126 3. Netherland117 4. UK87 5. Luxembourg82 Total - US $ 888 million

36. Some of our global investors

37. USA Companies - 76 Total FDI-Over US$ 200 Mn. US companies in Sri Lanka

38. www.investsrilanka.com Thank You Sri Lanka – Gateway to South Asia