Sri Lanka’s Board of Investment to double land extent of country’s Export Processing Zones
The Board of Investment (BOI) of Sri Lanka has reportedly initiated plans to almost double the collective land extent of the country’s Export Processing Zones, which are also known as Free Trade Zones (FTZs).
Currently, there are 14 Export Processing Zones around Sri Lanka which occupy a total land area of around 3,000 acres.
“We have 14 FTZs, but the space available is about 3,000 acres and the space usable is only about 2,600 to 2,800, or even less. Now there is an initiative to almost double that capacity,” BOI Chairman Mangala Yapa has reportedly said at the opening session of Sri Lanka Economic Summit 2019 which commenced at the Cinnamon Grand Hotel Colombo last Wednesday (18).
According to reports, an Export Processing Zone is a designated area of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered to attract new business and foreign investments.
Yapa has further noted that this expansion has been necessitated due to the frustration experienced by land starved foreign investors.
“When an investor comes he doesn’t have the space to set up immediately. In Sri Lanka we take a long time to get land cleared and by that time the investor is fed up. Therefore, even if the investor is keen on doing something the space is a major concern,” he has added.
Sri Lanka’s Export Processing Zones are situated in Katunayake, Biyagama, Koggala, Wathupitiwela, Mirigama, Polgahawela, Horana, Mawathagama, Mirijjavilla, Malwatte, Seethawaka, Bingiriya and Hambantota.
OSL take:
The move by Sri Lanka’s BOI to expand its Export Processing Zones is indicative of the growing demand by foreign companies to set up businesses in these zones as well as the expanding business/investment opportunities in Sri Lanka. The island’s geographical positioning and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region. These continuously improving ease of doing business environment in the country have also encouraged foreign businesses to explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/23092019/Z_3 |