US$259mn apartment investments in Sri Lanka in June
ECONOMYNEXT – Sri Lanka’s Board of Investment has signed 11 agreements to set up new apartment complexes with total estimated investments of around US$259 million in June alone, a statement said.
The new deals come after the BOI said it had drawn investments worth $230 million to set up apartment complexes in April and May 2016.
“As Colombo develops very fast the demand for apartments will correspondingly increase,” the latest statement said.
The 11 agreements signed to set up new apartment complexes will generate 900 direct job opportunities.
These include Arum Developers (Pvt) Ltd, Barrington Global (Pvt) Ltd, Vivesta Constructions (Pvt) Ltd, KSK Construction (Pvt)Ltd, Blue Ocean Legend (Pvt) Ltd, STK Quickshowa (Pvt) Ltd, City Square Projects (Pvt) Ltd, Capital Trust Residencies (Pvt) Ltd, Pearl Residency (Pvt)Ltd, Decent Homes Japan (Pvt) Ltd and Capital Trust Residencies Four (Pvt) Ltd.
The full BOI statement follows:
In the month of June 2016, the Board of Investment of Sri Lanka has signed 46 nos new investment agreements of a total value of US $ 982 Million estimated investment.
These projects cover a wide range of sectors such as manufacturing, construction, mixed development, hotel, mini hydro power, trading house, solar power, apparel, research and development and education.
In addition, once they startoperating, these projects will generate an estimated 8000new direct employment opportunities.
Upul Jayasuriya , Chairman BOI formally signed the agreements with the investors on behalf of the BOI. BOI has focused on fast racking investment facilitation, resulting in a high number of projects being approved.
As Colombo develops very fast the demand for apartments will correspondingly increase. Hence 11 agreements have been signed to set up new apartment complexes. The projects will change the Colombo skyline. A total estimated investment in this sector would be around US $ 259 Million and it will generate 900 direct job opportunities. These eleven projects include Arum Developers (Pvt) Ltd, Barrington Global (Pvt) Ltd, Vivesta Constructions (Pvt) Ltd, KSK Construction (Pvt)Ltd, Blue Ocean Legend (Pvt) Ltd, STK Quickshowa (Pvt) Ltd, City Square Projects (Pvt) Ltd, Capital Trust Residencies (Pvt) Ltd, Pearl Residency (Pvt)Ltd, Decent Homes Japan (Pvt) Ltd and Capital Trust Residencies Four (Pvt) Ltd.
Being one of the key sectors manufacturing still remains as a dominant sector in the country. Presently over 33% of the total exports under the BOI is contributed by the manufacturing sector other than apparel and over 61% of the national Industrial export other than apparel is contributed by the export oriented manufacturing projects operating under the BOI. A total number of 10 new agreements have been signed to set up various manufacturing projects such as health devises, boat building, pharmaceutical products, granite tiles,organic fertilizer and soft toys etc. An estimated investment of these ten agreements would be US$ 296 Million and generate 2400 employment. The projects are Screen line Imaging (Pvt) Ltd, Hand Hi Safety Products (Pvt) Ltd, GL Yatching Asia (Pvt) Ltd, Hands Pharmaceuticals (Pvt) Ltd, Goodwill Granite (Pvt) Ltd, Global Advance Recyling Lanka (Pvt) ltd, Trinco Pallets (Pvt) Ltd, Saru Export (Pvt) Ltd, Ceylon Waste Management Refinery (Pvt) Ltd and Kohinoor Floors Lanka (Pvt) Ltd
The tourism sector has been experiencing an impressive growth after restoration of peace in the country. As a result of presence of international brands such as Shangri-La, Sheraton, Marriott, Grand Hyatt, Movenpick and Onyx investor confidence have grown immensely. Hence there are 07 new agreements have been signed to set up hotel projects with an estimated investment of US $ 133 Million and will create 950 direct job opportunities. Summer Season (Pvt) Ltd, Sofia Colombo (Pvt) Ltd, The Golden Crown Hotel (Pvt) Ltd, Galle Heritage Lanka (Pvt) Ltd, Marine Drive Hotel (Pvt) Ltd, Management and Ivestment Combine (Pvt) Ltd and HurihelaPathana (Pvt) Ltd have signed to set up hotel projects.
Mixed development projects which reflect an urban development will include residential housing, shopping complexes, supermarkets and recreational facilities. A total number of six agreements signed to set up mixed development projects in Colombo area. The projects would invest for US $ 200 Million with 558 employment generation. Asian relators and developers (Pvt) Ltd, Havelock City (Pvt) Ltd, Southgate Property Development (Pvt) Ltd, Abans Land (Pvt) ltd, LupaInvestent (Pvt) Ltd and Earl’s Reality (Pvt) Ltd have signed agreements in this sector
Trading houses specialize in facilitating transactions between a home country and foreign countries. A trading house is an exporter, importer and also a trader that purchases and sells products for other businesses. Trading houses provide a service for businesses that want international trade experts to receive or deliver goods or services. As Sri Lanka considered emerging logistics centre in Asia investor confidence is being grown in this sector. Hence Four new agreements were signed to set up trading houses with an investment of US $ 40 Million and will generate 510 direct employments. DPL International (Pvt) Ltd, Edtra Apparel Company (Pvt) Ltd, T & FG Trading (Pvt) Ltd and Lulu Hypermarket (Pvt) Ltd have signed agreements to set up trading houses.
As power generation is one of the key areas of investment, BOI encourages investment in this sector. Three new agreements signed to set up Mini Hydro power projects in Mathale, Meegahakiula and Haguranketha. The electricity which generates by the Mini Hydro power plants will be supplied to the national grid.EcasKiula (Pvt) Ltd, Loggaloya Hydro Power (Pvt) Ltd and Marj Company (Pvt) Ltd have signed agreements with an investment of US $ 10 Million and 55 new job opportunities.
M/s Vydexa Lanka Power Corporation (Pvt) Ltd signed an agreement to set up 10 MW Solar power plant with an investment of US $ 15 Million.
M/s Glovtech Innovation (Pvt) Ltd signed an agreement to set up Research and Development lab for glove technology. The facility will be located at Munagama, Induruliyedda.
M/s IIT International Ltd signed an agreement to set up Higher Education Institute in Colombo with US $ 14 Million investment.
M/s St Anthony’s Properties (Pvt) Ltd has entered to an agreement with BOI to set up an office complex. This project will be located in Colombo 9 with an investment of US $ 13 Million.
Hence in 2016 the BOI laid the foundation for a higher quantum of Foreign Direct Investment (FDI) in the years to come. This was achieved by the identification and implementation by the BOI’s management of ways by the improvement of service quality towards the investor with the objective of making Sri Lanka a highly competitive business friendly destination.
(COLOMBO, July 11, 2016)
Jehan Perera - Executive Director National Peace Council