Business opportunities in Sri Lanka
Business opportunities in Sri Lanka
Business opportunities in Sri Lanka
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DOING BUSINESS WITH SRI LANKA<br />
TRADE & INVESTMENT<br />
OPPORTUNITIES<br />
IN SRI LANKA<br />
THE INVESTMENT OPPORTUNITIES FOR<br />
SHOPPING MALL & HOTEL DEVELOPMENT<br />
IN SRI LANKA
COUNTRY AT A GLANCE……<br />
Population : 20,653<br />
Per capita GDP: US $ 2,830<br />
GDP:<br />
US$ 59.1bn<br />
GDP growth: 8.3%<br />
Exports: US$ 10.5bn<br />
Imports: US$ 20.0bn<br />
Literacy Rate: 91.4 %<br />
Unemployment: 4.3%<br />
FDI:<br />
US$1.0bn
BACKGROUND<br />
•Peace <strong>in</strong> <strong>Sri</strong> <strong>Lanka</strong> after 30 years<br />
•<strong>Sri</strong> <strong>Lanka</strong> is enjoy<strong>in</strong>g a peace dividend<br />
with 8.3% economic growth <strong>in</strong> 2011.<br />
•Tourism arrivals which were hover<strong>in</strong>g<br />
around 300,000-400,000 have shot up after<br />
the end of the war.<br />
•Recorded 855,975 by end of 2011 with the<br />
target of 2.5Mn by 2016.
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
‣SRI LANKA AS A GLOBAL TRANSHIPMENT<br />
HUB: Maritime Hub<br />
‣No.1 <strong>in</strong> South Asia<br />
‣Total conta<strong>in</strong>er<br />
throughput 4 Mn.<br />
‣33 major shipp<strong>in</strong>g l<strong>in</strong>es<br />
‣Transshipment cargo 70%<br />
‣Colombo Port-Conta<strong>in</strong>er<br />
Mega Hub
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Aviation Hub<br />
• Service hub and as hub for budget airl<strong>in</strong>es<br />
• BIA International Airport: 464 flights per<br />
week<br />
• Second International Air port at Mattala<br />
• Developments and upgrad<strong>in</strong>g of Domestic<br />
airports<br />
• Position Colombo as a regional logistics and
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Flights from <strong>Sri</strong> <strong>Lanka</strong> to other major<br />
dest<strong>in</strong>ations<br />
City<br />
Flights Per Week<br />
‣ India (All Cities) 97<br />
‣ Dubai 39<br />
‣ S<strong>in</strong>gapore 21<br />
‣ Bangkok 16<br />
‣ Kula Lumpur 16<br />
‣ London 13<br />
‣ Hong Kong 09<br />
‣ Paris 04<br />
‣ Frankfurt 04<br />
‣ Beij<strong>in</strong>g 04<br />
‣ Tokyo 03<br />
‣ Shanghai 03
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Knowledge Hub<br />
• IT literacy and <strong>in</strong>ternet access<br />
for all<br />
• Creation of knowledge-based<br />
jobs<br />
• IT parks
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Ma<strong>in</strong> Power Sources<br />
•Hydro ‐ 45%<br />
•Thermal ‐ 55%<br />
Energy Availability<br />
Develop renewable energy sources<br />
New Oil ref<strong>in</strong>ery at Hambantota<br />
Oil and gas exploration
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Products Specialty<br />
• Reputed for its guaranteed quality products<br />
with HACCP, GMP etc<br />
• Skilled and semi skilled workers at competitive<br />
wage rates<br />
• Renowned for high caliber professional skills<br />
• World class reputation <strong>in</strong> the production high<br />
quality products such as Ceylon tea,<br />
high end garments
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Market Access<br />
Free Trade Agreements with India & Pakistan<br />
• Indo‐<strong>Lanka</strong> FTA ‐100% Duty free access to<br />
India for 4,232 products<br />
• Pakistan‐<strong>Sri</strong> <strong>Lanka</strong> FTA ‐ 100% Duty free<br />
access to Pakistan for 4,686 products
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Export Process<strong>in</strong>g Zones ‐Owned by The Board of<br />
Investment ‐12 EPZs
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
• Health Care up to<br />
International Standards<br />
• World‐class Education<br />
• Prestigious Hotels / Leisure<br />
Facilities<br />
• Modern Office Complexes<br />
• Luxury Residential<br />
Apartments<br />
• F<strong>in</strong>ance and Bank<strong>in</strong>g
STRATEGIC STRENGTHS AS A<br />
BUSINESS DESTINATION……<br />
Labour<br />
(Monthly)<br />
Competitive Factor Costs (US$)<br />
<strong>Sri</strong> <strong>Lanka</strong> India Thailand Vietnam Ch<strong>in</strong>a<br />
Shop floor 102 196 231 104 379<br />
Managers 627 1,116 1,341 822 1,199<br />
Power<br />
<strong>Bus<strong>in</strong>ess</strong> (per Kwh)<br />
0.09 ‐ 0.28 0.06 – 0.11 0.11 0.028 – 0.104 0.08<br />
Water<br />
<strong>Bus<strong>in</strong>ess</strong> (per cum) 0.46 0.22 ‐ 2.19 0.29 ‐ 0.48 0.39 0.9<br />
Office rent (per sqm)<br />
9.50 – 15.83 26.03 – 45.54 19.77 27.5 – 56.5 46.9 – 67.4<br />
Hous<strong>in</strong>g 1,400 1,753 – 5,480 1,430 – 1,977 2,100 – 2,700 2,630 – 6,591<br />
Telephone ‐ Local (per m<strong>in</strong>.) 0.01 – 0.08 0.009 0.09 0.012 0.03<br />
Internet (Broad band<br />
monthly charges)<br />
53.93 – 83.34 24.18 73.01 183.936 43.9
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
GARMENTS, TEA, GEMS & JEWELLERY,<br />
RUBBER BASED PRODUCTS,COCONUT,<br />
COIR BASED, CEREMIC & PORCELAIN,<br />
ELECTRICAL & CABLE,FOOD<br />
INGREDIENTS,LEATHER & FOOTWEAR<br />
ICT
SRI LANKA DELEGATION…<br />
‣ Stassen Exports (Pvt.)Ltd.<br />
‣ Euro‐Scan Exports ( Pvt.)Ltd.<br />
‣ Dankotuwa Porcela<strong>in</strong> PLC.<br />
‣ Royal Fernwood Porcela<strong>in</strong> Ltd.<br />
‣ Samson International PLC<br />
‣ Vecheson (Pvt.)Ltd<br />
‣ Kelani Cables PLC.<br />
‣ Kevilton Electrical Products ( Pvt.)Ltd<br />
‣ <strong>Lanka</strong> Harness Co. (Pvt.)Ltd.<br />
‣ Uniceyl Market<strong>in</strong>g Services.
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION……<br />
Build<strong>in</strong>g a Susta<strong>in</strong>able Garment<br />
Industry<br />
• Developed <strong>in</strong>to a sophisticated <strong>in</strong>dustry, total<br />
solutions specialists<br />
• World class manufactur<strong>in</strong>g facilities<br />
• International repute as reliable and a quality<br />
manufacturer<br />
• Highly competent work force<br />
• Focus on Innovation<br />
• Track Record for uplift<strong>in</strong>g rural communities<br />
• High level of social and environmental<br />
accountability
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION……<br />
Confidence of lead<strong>in</strong>g International Brands
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
Ceylon Tea<br />
• Seven Agro-climatic zones where tea is produced with<br />
unique taste, colour, aroma, liquor and appearance<br />
• Tea is billion dollar <strong>in</strong>dustry with 1.5 Mn people employed.<br />
• 4% of the country’s GDP<br />
• Owns the world’s first ever Certification Mark for<br />
produc<strong>in</strong>g Ozone friendly tea and w<strong>in</strong>ner of the<br />
Montreal Protocol award for 2007<br />
• Pioneer<strong>in</strong>g Organic tea exporter <strong>in</strong> the world<br />
• World’s biggest s<strong>in</strong>gle tea auction centre.<br />
• Leader <strong>in</strong> value added tea exports.<br />
• Strictly adheres to ISO 3720 quality<br />
• Standards across the supply cha<strong>in</strong>
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
Gems and Jewellery<br />
• <strong>Sri</strong> <strong>Lanka</strong> has given the world the best sapphires<br />
<strong>in</strong>clud<strong>in</strong>g Blue Sapphires for the Royalty.<br />
• Renown for wide range of colour gems<br />
• eg;Sapphires, Rubies, Alexandrate, Crysoberyl,<br />
• High quality and vary<strong>in</strong>g sizes of natural gems<br />
• Skilled cutters for Diamond cutt<strong>in</strong>g & polish<strong>in</strong>g<br />
• A modern gem test<strong>in</strong>g laboratory which will issue an<br />
<strong>in</strong>ternationally accepted test<strong>in</strong>g reports
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
Rubber Products<br />
• Lead<strong>in</strong>g solid tyre supplier - accounts for 40%<br />
of the world’s market<br />
• Manufacturer of high quality natural & crepe<br />
rubber<br />
• Value added rubber products <strong>in</strong>clude ;<br />
• Pneumatic & solid tyres, tubes ,<br />
• auto & <strong>in</strong>dustrial components<br />
• Gloves all <strong>in</strong>dustries <strong>in</strong>clud<strong>in</strong>g surgical,<br />
agriculture, food process<strong>in</strong>g, automotive 7<br />
m<strong>in</strong><strong>in</strong>g<br />
• Hot water bottles ,<br />
• Floor cover<strong>in</strong>g , mattresses, household<br />
items,<br />
• Suppliers to Caterpillar, Solidal Industrial<br />
Tyres, JCB, FIAT, Komatsu, Yale and John<br />
Deere.
Rubber<br />
Floor<strong>in</strong>g<br />
Tiles
Rubber Profiles<br />
Mats<br />
Hot Water Bottles<br />
Mats<br />
Pleasure Hoses<br />
Hot Water Bottles
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
Ceramic & Porcela<strong>in</strong> Products<br />
•Decade of <strong>in</strong>dustry experience<br />
•Wealth of High quality raw materials<br />
Kaol<strong>in</strong>, feldspar, dolomite, silica quartz<br />
•Compliance with best labour practices<br />
•Best f<strong>in</strong>e table ware ( porcela<strong>in</strong>, stoneware etc..)<br />
•Ornamental art ware, Ceramic tiles ( wall tiles & floor tiles)<br />
•ISO certified companies<br />
•Export<strong>in</strong>g to many countries which <strong>in</strong>cludes USA,UK , Japan<br />
•and many European dest<strong>in</strong>ations
Dankotuwa Products…….
ROYAL FERNWOOD PORCELAIN<br />
LIMITED
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
Coconut/Coir based Products<br />
•Plays a pivotal role <strong>in</strong> the Economy contribut<strong>in</strong>g<br />
0.3% to the GDP<br />
•<strong>Sri</strong> <strong>Lanka</strong> produces ready to use range of value added<br />
products such as coconut milk, coconut milk powder,<br />
coconut cream, desiccated coconut etc<br />
•Coir based products are very popular <strong>in</strong> the world market<br />
such as coir tw<strong>in</strong>e, geo textile coco peat, brushes,<br />
coir briquettes & activated carbon<br />
•Adherence to str<strong>in</strong>gent quality control standards<br />
and export to more than 50 countries
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
……<br />
C<strong>in</strong>namon & Other <strong>in</strong>gredients<br />
• World’s number one exporter of C<strong>in</strong>namon<br />
• Over 85% of the world production,<br />
• Ingredient for food, Pharmaceuticals, cosmetics and<br />
herbal/ayurvedic medic<strong>in</strong>e
House & Build<strong>in</strong>g Wires<br />
Flexible Cords<br />
Auto Cables<br />
Control Cables
PRODUCTS & SERVICES STRENGTHS<br />
AS A BUSINESS DESTINATION<br />
Export of Services<br />
……<br />
• ICT/ BPO/KPO<br />
• <strong>Sri</strong> <strong>Lanka</strong>n software companies are globally<br />
known for<br />
• Bank<strong>in</strong>g<br />
• F<strong>in</strong>ancial<br />
• Insurance,<br />
• Mobile applications and<br />
• HRM, ERP solutions.<br />
• Port Services
TRADING POSITION-Market wise<br />
……
TRADING POSITION-Product wise<br />
……
TRADING POSITION<br />
……<br />
Year<br />
Exports<br />
US $ Mn<br />
2007 18 16<br />
2008 16 24<br />
2009 16 18<br />
2010 21 18<br />
2011 30 35<br />
Imports<br />
US $ Mn
TRADING POSITION<br />
……
INVESTMENTS STRENGTHS AS A<br />
BUSINESS DESTINATION<br />
BOI OPERATING ENVIRONMENT<br />
• Total Foreign Ownership<br />
• No restrictions on Repatriation of Earn<strong>in</strong>gs<br />
• Safety of Foreign Investments Guaranteed by the Constitution<br />
• Strong Intellectual Property law <strong>in</strong> l<strong>in</strong>e with WIPO regulations<br />
• National Treatment is guaranteed<br />
• Signatory to the Multilateral Investment Guarantee Agency<br />
(MIGA) of the World Bank.<br />
• Investment Protection Agreements and Double Taxation Relief<br />
Agreements with over 25 countries.
ISSUE- Foreign <strong>in</strong>vestors for Infrastructure<br />
• There are about 14,461 hotel rooms <strong>in</strong> the Country (<br />
This figure <strong>in</strong>cludes both star grade and unclassified)<br />
•To achieve the 2.5 Mn target by 2016, <strong>Sri</strong> <strong>Lanka</strong> will<br />
need a total 55,461 rooms, that is an additional 41,000<br />
rooms.<br />
•Available shopp<strong>in</strong>g experience for both domestic and<br />
<strong>in</strong>ternational consumers has scope for growth.<br />
•Development of Expressways are underway.
NEW EXPRESSWAY PROJECTS
NEW EXPRESSWAY PROJECTS<br />
• Northern Expressway<br />
Up to Jaffna<br />
• Eastern Expressway<br />
Up to Tr<strong>in</strong>comalee
NEW TOURISM PROJECTS<br />
TRINCOMALEE
NEW TOURISM PROJECTS<br />
Kalpitiya Islands<br />
10 islands are available on 33yrs<br />
lease basis
Foreign Companies that have <strong>in</strong>vested<br />
In <strong>Sri</strong> <strong>Lanka</strong><br />
•Sh<strong>in</strong>g Kwan Group<br />
•Prima<br />
•Aman Resorts<br />
•Dialogue<br />
•Shangri-La<br />
•Sun International<br />
•Sheraton Group<br />
•Hyatt<br />
•Mustafa’s hotel and shopp<strong>in</strong>g complex
<strong>Sri</strong> <strong>Lanka</strong> Export Development Board<br />
<strong>Sri</strong> <strong>Lanka</strong> Export Development Board<br />
www.srilankabus<strong>in</strong>ess.com<br />
www.srilankabus<strong>in</strong>ess.com
ACCREDITATION & CONCURRENT<br />
ACCREDITATION<br />
ANGOLA<br />
ZAMBIA<br />
MR. ELMO<br />
JAYATHILAKA<br />
MR.ERROL FONSEKA<br />
SEYCHEL<br />
LES<br />
MR.SACKY AIPINGE<br />
MR C DAHANAYAKE<br />
MADAGASCA<br />
R<br />
MR.GOULAMALAY<br />
NAZIRMAHOMED<br />
MAURITI<br />
US<br />
MR. SALEEM TOO<br />
Pretoria<br />
MR.VALI MOMADE<br />
HASSAN<br />
MR.HARISH METHA
NALIKA KODIKARA<br />
COMMERCIAL SECRETARY<br />
HIGH COMMISSION OF SRI LANKA<br />
PRETORIA<br />
Email: trade@srilanka.co.za
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