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The Sri Lankan government formed the Board of Investment (BOI) which is having the
sole authority to approve foreign and local investments in Sri Lanka. BOI is
currently expanding and promoting Sri Lanka as a major manufacturing and a trading hub in
the South East Asia. Industries such as manufacturing of wearing apparels, sporting
goods, value added food items and electronics have been the main focus of the BOI. |
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A "200
Garment Factory Project" was designed to encourage investors to locate factories
outside the Western Province (where Colombo is located). In this connections 4 free
trade zones have been set up where investors can enjoy various tax and quota incentives. |
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Today the
North and East Peace Accord between the Rebels and the Sri Lankan Government seems to be a
major stepping stone towards the development of the Sri Lankan Economy and positioning
itself as a key Trading, Shipping and Aviation Hub in entire West Asia. The
Government is allocating significant amount of resources in infrastructure development
projects and also the most flexible terms & conditions, attractive incentives to any
potential foreign investor to seize the enormous amount of opportunities available. |
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The Sri
Lanka Stock Exchange, which was opened for foreign investors in the early nineties
initially resulted in a massive boom, with heavy buying from Singapore and Hong Kong based
investors. Since then the market has leveled off. Today approximately 250
companies are quoted in the Colombo Stock Exchange. |
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Government
has embarked on steady privatisation program of state assets in keeping with
"Liberalised Economic Policies", where more prominent institutes such as Sri
Lanka Ports Authority, Sri Lanka Telecom, Sri Lanka Petroleum Corporation, State Banks and
State Plantation Sectors have been privatised successfully. |
