Sri Lanka’s BOI calls for EOIs from investors to set up manufacturing projects in already-developed EPZs

Sri Lanka’s BOI calls for EOIs from investors to set up manufacturing projects in already-developed EPZs

Sri Lanka’s Board of Investment (BOI) has reportedly called for expressions of interest (EOIs) from potential investors to setup export manufacturing projects in the already-developed Export Processing Zones (EPZ) in Koggala, Seethawake, Horana, Mawathagama, Polgahawela, Kandy and Mirigama.
According to reports, the BOI has assured various incentives and facilitation for enhancing the private sector developed EPZs for potential investors to establish export manufacturing ventures.
However, only investment project proposals which are export oriented (a minimum of 80% of the total output) and meet the criteria qualifying for BOI status under Section 17 of the BOI law will be eligible for allocation of land.
Media reports further state that the selected respective investor shall furnish a refundable deposit or bank guarantee of 10% of the proposed investment value of the project at the time of signing the agreement with the BOI, which will be reimbursed after the implementation period, if the agreed value of the investment is realised.
“This time around the proposals will be assessed through an evaluation committee according to a marking scheme provided and those applications will then be forwarded to the Board for approval. Previously, when a proposal is submitted we inform the investor on the shortcomings in the application form and call them to resubmit documents. But this time, if the proposal does not fulfill the BOI criteria mentioned, it will be rejected according to the marks it has scored. It is like an exam — you write it and you get results accordingly,” BOI sources have been quoted as saying in the local media.
The deadline for submission of proposals for prospective investors is February 28th to the Technical Services Department of the BOI at Level 05, West Tower, World Trade Centre, Colombo 01.
It has been reported that the Koggala EPZ has five land slots totaling 8.3 acres for industrial activities.
There are four separate lands in Seethawaka totalling 4.11 acres, while there is 1.8 acre land in Horana. In Mawathagama there are three separate lands amounting to 5.84 acres and Polgahawela has four land slots totalling 7.6 acres.
The Kandy Industrial Park has two separate lands totalling 3.3 acres, while Mirigama EPZ has three land slots amounting to four acres.

OSL take:

Interested foreign investors could consider the call by the BOI for EOIs to set up manufacturing plants in the already established EPZs. Since the EPZs are already operational and consist of the necessary supplementary infrastructure facilities, it would be a viable option for investors to consider when looking at setting up a manufacturing plant in Sri Lanka.

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Article Code : VBS/AT/20180207/Z_2

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