Sri Lanka’s Board of Investment Chief says country is the next growth haven
Sri Lanka’s Board of Investment (BOI) Chairman Sanjaya Mohottala has reportedly stated that the country could achieve a sustained GDP growth of 7% and export and services income of over US$ 30 billion by 2025. He has observed that this was achievable with six identified key thrust sectors, coupled with growth ambitions and policy and investment orchestration.
“Sri Lanka is the next growth haven. Take advantage,” Mohottala has told the Sri Lanka Investment Forum (SLIF).
Noting that Sri Lanka is home to over 1,200 foreign companies, he has pointed out that 50% of capital formation that took place in 2020 by BOI companies came from existing investors expanding their footprint to take advantage of global opportunities, according to a Daily FT report.
“This tells you the conviction they have of Sri Lanka’s opportunities and its competitiveness as a sourcing destination,” Mohottala has further observed.
To achieve the vision of doubling GDP over the next 10 years, the BOI Chief has identified six catalytic sectors and key sub-sectors that needed to be targeted to attract investment and usher inclusive growth.
“Sri Lanka’s decade of growth offers multi-sector investment opportunities. These six key thrust sectors include manufacturing, ICT, tourism, agri and food processing, and infrastructure and other services. By creating a compelling investment climate and specific investment opportunities, Sri Lanka offers a win-win for investors as well as its nationals,” Mohottala has noted.
He has reportedly added that along with supporting existing industries to expand, the BOI is also looking to orchestrate and help several key manufacturing sectors take root in the country so as to reach US$ 1 billion export or import substitution by 2025.
In the apparel industry, he has noted that opportunity exists for investors to set up factories to localise up to US$ 1 billion worth of raw material imports, to increase supply chain resilience and supply chain agility, and cater to the growing demands of manufacturers and buyers.
According to him, the government is offering generous tax breaks up to 10 years, while customised incentive packages for larger investors will be provided for investments in the dedicated pharmaceutical manufacturing zone.
Sri Lanka’s economic activities amidst the global Covid 19 pandemic is indicative of the strength and growth of the country’s economy as well as it’s future growth potential. The country’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country have helped Sri Lanka position itself as the emerging business destination in the South Asian region. Sri Lanka’s aggressive development programme aimed at taking the country to the next level of development as well as introducing new efficient economic policies will undoubtedly attract foreign businesses/investors.
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