Government's industrialisadon strategy calls for the expansion,
diversification and upgrading of its industrial base, as well
as promotion of foreign investment in virtually all sectors of
the economy. (A small restricted list applicable to foreign investors
can be found on page 55 of this brochure).
this broad policy framework, the BOI has identified priority sectors
for attracting foreign and local investments. A description of
several of these sectors follows.
Private investors are active in telecommunications
services such as cellular telephone services, wireless local loop
systems and pay telephone networks. Investments in the power sector,
ranging from mini-hydro systems to large-scale generation plants
and the port sector are also being implemented.
Other opportunities in infrastructure investments include housing
& property development, hospitals, voice and data communication
systems, public transport and environment. Foreign ownership up
to 100 per cent is allowed in these ventures.
Lanka has all the required attributes for successful investment
in the electronics industry. For example, the status of Sri Lankan
workers as among the best educated and most trainable in South
Asia is especially relevant.
Many industries manufacturing for export are already located here.
Products manufactured include head-stacks for computer disk drives,
magnetic heads for audio and video equipment, ferrite core transformers
and household appliances.
and development facilities and "troubleshooting" expertise
for the electronics industry are available locally at the Arthur
C. Clarke Centre for Modern Technologies. The Centre will also
prepare and deliver customised training packages.
are several investment opportunities in the manufacture of products
such as electrical machinery, houseware such as fans, room airconditioners,
refrigerators, small engines and metal furniture. Investments
also can be made in fabrication subcontracting for many products.
Lanka has a long tradition in the manufacture of machinery used
in the tea industry. These skills can be harnessed and easily
extended to the manufacture of all types of food processing machinery.
Each year, Sri Lanka's education system produces a large number
of workeis proficient in the skills requited for the light engineering
undertaken in Sri Lanka show that the local light engineering
industry compares well internationally for both its efficiency
is of significance as manufacturing operations in light engineering
products are among the first to move to lower cost locations
when labour costs increase.
island exports products such as precision tools, moulds and
electrical enclosures and manufactures high quality water pumps
and agricultural machinery for the local market
GARMENTS AND FASHION ACCESSORIES
The garment industry has been one of the fastest
growing industries in Sri Lanka. Growth has been stimulated by
a very large installed capacity, a high level of technical and
managerial skill and sophisticated marketing know-how
are excellent investment opportunities in the production of up-market,
higher quality and better designed garments to meet the needs
of sophisticated markets around the
Investment potential also exists in the manufacture of high quality
fabric to meet the needs of the expanding garment export industry,
yarn, embroidery and interlining. The value of annual imports
of fabric is estimated to be more than US $1.2 billion. Also in
demand are accessories such as zippers and buttons. The value
of annual imports of accessories is estimated to be more than
Sri Lanka has a large pool of young educated
people with skills in computer programming. Software engineers
qualified in computer science offer levels of skills that are
among the best in the world. rhe government has actively encouraged
the spread of computer literacy by providing duty concessions
on all hardware imports.
country already serves as the headquarters for one of the largest
software development companies in South-East Asia. Furthermore,
low cost offshore data entry operations have thrived here since
the early 1980s. Investors can now take advantage of increased
sophistication and knowledge to set up offshore software development
development is carried out in most current languages. This environment
is further enhanced by modern data transmission and telecommunication
systems and complementary hardware.
The island is the world's fifth largest exporter
of natural rubber, generating over 100,000 tonnes annually. More
than 60 per cent is exported in an unprocessed form.
the manufacturing front, Sri Lanka is the world's leading supplier
of solid rubber tyres for off-road vehicles. Major investments
have also been made by producers of healthcare and surgical rubber
products, where high quality raw material is of primary importance.
Globally, there is good demand for rubber tiles and floor coverings.
In addition, shoe producers obtain rubber heels and soles from
for investment include the manufacture of tyres, tubes and automotive
rubber products, especially by relocating these facilities from
high cost industrialised or industrialising countries.
Sri Lanka's tropical climate is ideal for large-scale
export-oriented investments in areas such as foliage, cut flowers
and exotic fruits and vegetables.
East-Asia also offers an
expanding and adjacent market for shellfish and other products
and aquaculture. In addition to primary production, Sri Lanka
also requires processing and storage facilities to help exports.
Sri Lanka is well-endowed with minerals and
these form an important export category. For example, the local
graphite is of premium quality and offers many processing opportunities
in graphite lubricants, flake graphite, carbon brushes, refractory
bricks and midget electrodes.
minerals include heavy metal mineral sands, clays, dolomite and
apatite. The mineral sands contain around 75 per cent titanium
dioxide - the opaque white pigment used in paints. Traditionally,
these have been exported in unprocessed form.
presence of quartz, ball clay, silica and feldspar offer opportunities
in the ceramics and glass industries. Sri Lanka has about 75 per
cent of the raw material required to manufacture such products.
The country's porcelain is ranked among the best in the world.
Large deposits of phosphate are also available for the manufacture
For centuries, the island has been famed for
its precious gems. The availability of these precious stones
of superior manufacturing skills highlight Sri Lanka's potential
as an international centre for j ewellery.
traditional lapidary trade boasts superior skill levels. These
skilled operators have contributed to our diamond cutting and
polishing industry becoming one of our most recent export success
stories. This expertise is matched by very competitive cutting
charges and excellent craftsmanship, especially for the smaller
stones where labour costs are significant.
addition, jewellery is now exported to Germany, Japan, the Middle-East
and the United States.
of gems, diamonds and jewellery have been granted an open-ended
exemption from income tax.
RECREATION AND LEISURE PROJECTS
Sri Lanka hosts around 400,000 tourists each
year with the potential for this figure to increase substantially.
acceptance of Sri Lanka as a major tourist destination offers
excellent opportunities for strategic investments in the leisure
Further opportunities exist for warehousing
complexes and cargo and container facilities. The strategic location
of Sri Lanka on international shipping routes offers many opportunities
for ship repairing, ship breaking and entrepot trading.
Even among Sri Lankans, there is an unsatisfied demand for recreation
and leisure facilities due to an increase in disposable incomes.
there is investment potential in hotels and resorts, an attractive
alternative lies in the development of leisure complexes such
as golf courses and theme parks. The island offers some magnificent
locations for such investments.
of Sri Lanka (BOI) - Sri Lanka.
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