Sri Lanka to sign JV agreement with Thai based Rojana next month to set up industrial park
Sri Lanka’s State Minister for International Trade, Sujeewa Senasinghe has reportedly said the government will sign the joint venture agreement with Thai-based Rojana Industrial Park Public Ltd by the end of February.
The joint venture, which will result in the establishment of an industrial park, is expected to attract about 200 factories.
“We have got Cabinet approval to release land to the Board of Investment (BOI) and to commence essential infrastructure facilities. We hope to sign the joint venture agreement by the end of February and have the industrial park up and running by December,” International Trade State Minister Sujeewa Senasinghe has told the Daily FT.
Upon obtaining approval from the Cabinet, 244 acres of land under Phase I and 166 acres of land under Phase II in Neuchattlewatte will be released as a free grant on a free cost basis to the BOI for the establishment of the Milleniya Export Processing Zone (EPZ).
“Generally it takes about three years to get the land released and another five years to get the essential infrastructure facilities. However, with my personal intervention, I managed to get the lands released and by 17 January will commence the road construction,” Senasinghe has said.
According to reports, the Cabinet has also granted approval to pay compensation for the resettlement of families affected by the project, a move which has been carried out by the respective management companies of the estates based on the valuation of the Chief Government Valuer via the Divisional Secretary of Milleniya through the budgetary allocations made to the ministry in 2017 and 2018.
The Minister has also told the media that he was in discussion with Rojana to set up a vocational training centre in the EPZ, which will help investors absorb skilled labour into the new factories being established.
The joint venture between the Sri Lankan government and the Thai-based Rojana Industrial Park to set up an industrial park with BOI facilitation would be an ideal investment opportunity for foreign investors/businesses looking at setting up their industrial bases in Sri Lanka. Investors could look at basing their operations in the Indian Ocean region in Sri Lanka given the country’s geographical location as well as the availability of skilled labour supported by trade agreements with many countries.
|Article Code :||VBS/AT/20180117/Z_3|