Govt. to attract $9b to H’tota in next 5 years

By Charumini de Silva

On the completion of the entire Hambantota development project, the Government is expecting around $9 billion within the next five years, a top Minister said yesterday. “With the signing of the HambantotaPort we are expecting around $1.4 billion, roughly a couple of billions for the two LNG plants, sugar refinery, oil refinery and two cement factories. All in all we are expecting around $9 billion in the next five years,” International Trade State Minister Sujeewa Senasinghe said, addressing the Sri Lanka Economic Summit on Wednesday.   

Noting that the country has debts as much as Rs.10 trillion, he expressed confidence that the signing of the Hambantota Port deal this week would ease debt as one of the initial steps.

In terms of attracting funds to accomplish the ‘Powerful Sri Lanka’ development agenda, he said the Government was working on setting up several industrial zones with joint foreign investor collaborations.

“In Millewa, Kalutara, a 330-acre and 200-acre industrial zone will be set up as a joint venture with Thai companies. I have had discussions with the investors and we are trying to speed up the process,” he added.

According to the Minister, the Thai investors will invest in infrastructure to develop the zone within five to 10 years, and it has been suggested to give a 40:60 partnership for a duration of 40 years. Upon reaching 40 years, the Government gets the full project.

He said the Thai companies find their political situation very uncertain and although they were bidding on Hong Kong, also due to some issues with its mainland China, they were keen on setting up companies in Sri Lanka to be part of China’s manufacturing chain.

“At the same time we encourage local entrepreneurs to get into these industrial zones. Setting up these industrial zones will help in transferring the lacking knowhow to our industries,” he added.

Senasinghe pointed out that Sri Lanka being a small economy could adopt and learn fast to be on par with other manufacturing countries to be the gateway to South Asia and Asia.

He asserted that the Government was committed to improving the Ease of Doing Business ranking to reach 70th position by 2020, adding that Government agencies would be computerised by the end of next year.