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Sri Lanka Country Presentation
Malith Mendis
President ACESL

Sri Lanka
Population – 20 m
Land Area – 25,000 sq
miles
Literacy rate – 93%
Capital – Colombo
Climate - Tropical

Sri Lanka
! Economic Indicators 2008 2009 2010
!
! GDP 39.6 Bln USD 43.5 Bln USD 48.24 Bln USD
! GNP 38.45 Bln USD 42.5 Bln USD N/A
! Current Account Balance -3.39 Bln USD -0.21 Bln USD -2.08 Bln USD
! Financial Account Balance -1.38 Bln USD 2.73 Bln USD N/A
! Population 20.22m 20.45m N/A
! GDP by Sectors Agr: 13% 12.7% N/A
! Ind: 30% 30% N/A
! Ser: 58% 58% N/A
! Trade Balance -5.9 Bln USD -3.1 Bln USD N/A
! Overall Balance of Payments-1.39 Bln USD 2.72 Bln USD N/A

Taxation
! Company:
! Current status – 33% tax on normal companies. BOI
approved companies enjoy tax holidays.
Complicated tax structure. Government revenue
enhanced to fight war in 2008-09
! Issues – Large number of levies, direct taxes – VAT,
Nation Building tax etc
! Comments – Presidential Commission on Taxation to
recommend ways to simplify tax structure

Taxation
! Individual:
! Current status – Taxes vary from 5% to 35%.
Interest on housing loans, payments to provident
funds deductible from taxable income.
! Issues – Direct taxes on purchases high and
complicated.
! Comments - Presidential Commission on Taxation to
recommend ways to simplify tax structure

Policies on Movement of
Natural Person (MNP)
! Immigration Rules:
! Visitors from all countries can enter Sri Lanka with visa on arrival. However,
work visas are restricted.
! Administrative Guidelines:
! Sri Lanka has not restricted movement of persons to specific skill categories
under GATS, but has stated that MNP will be subject to Sri Lanka’s laws on
immigration, consumer laws, and other relevant laws and regulations
! MRA’s (bilateral or multilateral agreements signed):
! The chapter on MNP in the India – Sri Lanka CEPA ( Comprehensive
Economic Partnership Agreement) limits coverage to specific skill
categories; business visitors, contractual service suppliers, intra-corporate
transferees (limited to managers, executives and specialists) and
independent professionals. This is not concluded yet.

Engineering Consultants
! Number of licensed engineers: 14,000 members of
the Institution of Engineers SL
! Number of graduate engineers: Approx 1000
graduates per year

ACESL
! The Association of Consulting Engineers, Sri Lanka, the apex body
of consulting engineers in Sri Lanka was established in 1980 and
was incorporated by an Act of Parliament in 2003. The Association is
a Member of FIDIC and represents the Sri Lankan Engineering
Consultancy profession at FIDIC.
! In Sri Lanka, FIDIC Contract documents are used in all projects
funded by the Multi Lateral Development Banks such as the ADB
and World Bank and the larger private sector projects.
! An important activity of the Association is the conduct of Courses,
Workshops and Lecture programs to upgrade the knowledge of
professionals in the construction industry. The Association has
conducted Course programs with FIDIC on the Use of FIDIC
Contract Documents, Dispute Resolution, Construction Adjudication
and so on.
ACESL

Regional Cooperative
Initiatives
! Cooperation MoU signed with CEAT this year
Potential Business Collaboration Among TCDPAP
Member Countries
• With Sri Lanka’s anticipated growth in the postconflict
scenario, the potential for business is
immense. With Planned growth in Tourism and
Industry, opportunities for TCDPAP member
countries to engage in projects.

Export of Services
The Export Development Board of Sri Lanka (EDB) has
taken initiative in promoting the export of professional
services from Sri Lanka. Export of Technical Consultancy
Services is included within this programme
EDB assists in networking, promotion and implementation
of export of services, and has formed an advisory
committee to advise the Board and the Government on
these matters.
EDB subsidises enagaging in promotion including
participating in exhibitions and marketing initiatives.

Green Innovations
! The Green Movement of Sri Lanka is a consortium of 147
non-governmental organizations with a common goal of
increasing environmental awareness and furthering
conservation efforts in Sri Lanka. The movement provides
environmental education resources, and also uses legal
avenues and political pressure tactics such as lobbying to
achieve their aims.
! Wind Power and Solar Power projects are taking shape in Sri
Lanka. Several Wind Power projects and a Solar farm in the
South of Sri Lanka being built
! Waste to Energy Projects
! Reduced import duties on hybrid vehicles. Increasing number
of hybrid vehicles on the road

Green Technology and
Financing
! Green Technology Gap
! Knowledge base of Green technologies inadequate. Due to
post-conflict push on development, little emphasis on
adaptation of green technology.
! Green Financing
! Potential areas for green financing:
! Sources of funds: The Green Movement recently received
confirmation of funding from the Global Environment Facility
(GEF) Small Grants Programme (SGP) to work on communitybased
adaptation to climate change. The GEF is coordinated
and funded through ten agencies including the UNDP, the
UNEP, the World Bank and the UN FAO.

SL - Plans for the Immediate
Future
! Post Conflict Sri Lanka is seeing a resurgence in its
economy
“Sri Lanka will be the number 1 spot for the holidaymakers”
New York Times 10 th January 2010
“ Sri Lanka, the fastest growing Asian economy after China”
“ Sri Lanka has emerged from a decades–long war, and is enjoying an economic revival. It is currently
the second-fastest growing Asian economy after China , a fact not lost upon the IMF, Which recently
upgraded Sri Lanka to middle income emerging market status ”
Teo Chee Hean
Singapore Deputy PM and Defense Minister
“Sri Lanka will be placed among the top 10 fastest growing economies in the world, placed 8 th with
a growth rate of 6.3%”
Economist Intelligence Unit 2010
ACESL

SL - Plans for the Immediate
Future
! Sri Lanka has been ranked as the 4 th best country in Asia for Investments. Thailand, China and the
Philippine are ahead of Sri Lanka. (In ranking the countries the survey has taken into consideration
education, health, quality of life, economic dynamism and political environment as indicators.)
- News week 2010 August
! Sri Lanka has many planned projects :
! Water and Sewerage Projects
! Sri Jayawardenepura Sewerage Project
! Port Development
! Low Income Housing Project
! Power > Waste to Energy Projects
! Roads
! Tourism Projects > Hotels
ACESL

Water & Sewerage
! Water Supply Projects – 25 Projects
! Sewerage Projects – 18 Projects
ACESL

Low Income Housing
! Low Income Housing Project – Colombo and Suburbs
! 500 sq foot houses
! 20 storey Buildings
! 25,000 Housing units
! The project aims to build 500 houses in Dematagoda, 500 houses in
Henamulla,400 houses in Aluth Mawatha, 7500 houses in Ekala and
6,500 houses in Muthurajawela while land identification in Colombo
and suburbs are in progress to build the balance 5,100 housing units
as apartments.
! From the phase One of the programme it is expected to liberate 150
Acres of land within Colombo city and Rs.25 bn is expected to be
raised by releasing around 75 to 80 Acres of liberated lands to
prospective investors on long term lease basis.
ACESL

Power > Waste to Energy
! This Project named “Jaiwa skanda” has commenced 38 projects utilizing
solid waste, and is expected to produce 259 MW of power. Meanwhile 8
more projects are in the construction stage, while 3 projects are currently
operational adding 12 MW to the National Grid.
! Currently there are 17 projects in the offing
ACESL

Roads
! Colombo - Katunayake Expressway (25km)
! Southern Highway (130km)
! Outer Circular Highway (28km)
! Colombo - Kandy Highway (98km)
! Katunayake - Padeniya - Anuradhapura (153.3km)
ACESL

Tourism - Key Tourism
Development Areas
! Colombo and Greater Colombo Resort Region
Negombo, Colombo, and Mount Lavinia
! South Coast Resort Region
Wadduwa, Kalutara, Beruwala, Bentota, Dedduwa, Madu
Ganga,
Balapitiya, Ahungalla, Hikkaduwa,Galle, Unawatuna, Koggala,
Weligama, Mirissa, Matara, Tangalle, Hambantota,
and Tissamaharama
! East Coast Resort Region
Arugambay, Pasikudah, Trincomalee, and Nilaweli
! West Coast Resort Region
Kalpitiya, Marawila, and Waikkala

Market segmentation
based on attraction
Authenticity Seekers
23%
24%
Luxury Explorers
18%
14%
23%
21%
Insecure Explorers
Fun Excitement Seekers
Luxury Resort Seekers
Insecure Explorers

Distribution of Hotels, Rooms & Rooms Capacity
Percentages among Regions

Rooms
No of Rooms available
in 2010
Colombo City 3,151 10,241
North of colombo 2,173 7,046
South of colombo 492 1,599
Up to Galle 4,138 13,090
Beyond Galle 1,371 4,229
East Coast 279 913
Hill country 841 2,683
Kandy 1,322 4,237
Anuradhapura 240 786
Habarana 641 1,983
Polonnaruwa/Giritale 601 1,968
Total 15,249 48,775
No of rooms required
in 2016 - 2020

Proposed North East Construction &
Rehabilitation
! Housing, Electrical and Water supply, Sanitation
! Roads, bridges
! Harbours
! Government services – hospitals, administration
facilities
ACESL

Sri Lanka’s prominent Technical
Consultants
! Structures – CECB, Stems, ECL
! Hydraulics – Lanka Hydraulic Instutute
! Water Supply & Drainage – EEC, Ceywater
! General – RDC,
ACESL

Consulting Opportunities
! Therefore, opportunities for Sri Lankan as well as
International / Regional consultants in Sri Lanka are
good.
! Sri Lanka expects 8 – 9% Economic growth in the
next few years.

TCDPAP 2012
! ANNOUNCEMENT
! TCDPAP Conference 2012
! Colombo, Sri Lanka
! Organiser:
! Association of Consulting Engineers Sri Lanka
! 415, Bauddhaloka Mawatha
! Colombo 07
! Sri Lanka
! Tel: 94-11-2668808
! Fax: 94-11-2668959
! E-mail: ts@cecbsl.com

! Thank you
ACESL