The zone in Eravur will be operational in September 2021 and has already secured its first investment project approximating $ 35 million, with additional investors already reserving land. Once operational, the zone will localise a significant quantum of fabric related imports which approximate $ 2 billion. It will also generate 5000+ employment opportunities for a region that otherwise ranks high on youth unemployment.
The Board of Investment (BOI) continues to strengthen its foundation and lead the orchestration in attracting market transforming FDI in order to realise the vision set out by the Government of Sri Lanka to double GDP in this decade.
For “Country Attractiveness” to take place, the BOI recognises that the creation of a compelling investment climate, attracting targeted investments, providing potential investors with end-to-end investor support, and fostering and nurturing partnerships with key public and private stakeholders must take shape. Process monitoring, embracing technology, and of course, most importantly, developing the organisation and its people will form the focus of the agenda on “Revamping the BOI”.
Moreover, the BOI was able to secure projects worth over $ 2.3 billion in value in 2020 despite the global challenges, and the effects of the pandemic. Transformational changes were simultaneously initiated on both the economic landscape of the country as well as the BOI organisation. The establishment of two dedicated zones – one for pharmaceuticals in Hambantota, and the other for textile manufacturing in Eravur are cases in point.
Aggressive and targeted actions of leading international promotion agencies (IPA) around the world have reinforced the need for IPAs to invest strategically in promotion-based activities in order to not only secure a greater share of a contracted FDI, but even to ring-fence investments they already have in the pipeline. This is especially relevant in a scenario where the global FDI pool has dipped by over 40% owing to the situation at hand, with more than 1,000 IPAs worldwide competing for this reducing FDI stock. Such campaigns should not only be adequately funded, but they must also be professionally executed with a combined public-private sector expertise, if they are to yield exponential results. It is in this context that the BOI along with ICTA and other critical agencies were identified by the Cabinet as entities that require an infusion of specialised professional skills from the private sector.
A committee therefore headed by the Secretary to the Treasury was appointed to review and recommend proposals to meet the objectives of entities such as BOI. Accordingly, upon the presentation of the said proposals, Cabinet approval was thereafter granted to recruit professionals on contract basis to select positions identified and for the formation of a special unit to be set up. Professionals who would be recruited to this unit would need to possess deep business knowledge, international exposure, and a proven track record of identified private sector-based industry and domain specific skills, in addition to professional and academic qualifications.
Currently, the BOI is amidst operationalising this strategy approved by the Cabinet. It will generate the much-needed competitive strength when compared against regional IPAs, and these professionals will work hand-in-hand together as one team with experienced senior talent in the organisation on governmental affairs.
This talent infusion is part of a broader agenda that is deeply focused on building an enabling, cohesive and globally competitive organisation, and a strong public-private partnership. Other thrusts actioned already include the secondment of private sector professionals to the BOI for short term exposure programmes and vice versa. As paperless contact is the way of the future, simultaneous focus on a digitisation drive has also been initiated to facilitate a seamless customer experience for all requests received. Accordingly, an online customs documentation system has been actioned along with online payment platforms, with projects underway to introduce an online process for investor project submission and approval as well.
Eravur Zone operational next month
13 Aug 2021
Eravur Zone operational next month
13 Aug 2021