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Investment Promotion Minister Lakshman Yapa Abeywardena (left) with Minister of Traditional Industries and Small Enterprises Douglas Devananda at the Investor Forum in Jaffna. (Below) Some of the participants – Pix by Pradeep Pathirana
With the Board of Investment (BOI) setting up an office in Jaffna in 2010, a considerable amount of business and industrial activity has taken place since the end of the conflict. “Private sector investment approved by the BOI for post-war Northern Province is Rs. 68.2 billion via 23 projects, especially in agriculture and fisheries. Additionally nine hotel projects consisting of 328 rooms have been approved for construction with an investment of Rs. 2.2 billion,” Investment Promotion Minister Lakshman Yapa Abeywardena told the Investor Forum organised in Jaffna yesterday.
Minister of Traditional Industries and Small Enterprises Douglas Devananda was also present along with other officials.
In the banking sector, 20 State and private banks operating in the north have extended Rs. 4.6 billion worth of loans to 36,000 beneficiaries under different credit lines initiated by the Central Bank up to end of 2011.
“We are holding an Investor Forum in Jaffna in recognition of the fact that there are opportunities in the north and the greater need for economic activity, thereby generating jobs and income to people,” Minister Abeywardena said at the event organised by the BOI.
The forum saw around 80 prospective investors from overseas and Sri Lanka who are keen to explore opportunities. It was revealed that one investor was keen to invest in the medical sector in Jaffna and several others were looking at ICT and hotel and tourism sectors.
The Forum also gave an opportunity to participants to take up some of the pending issues which stifle higher flow of investments. One was the high cost of production, electricity and transportation. Further development of infrastructure was emphasised if Jaffna were to maximise its potential for tourism, business and industrial activities.
Focusing on macro initiatives, Minister Abeywardena said that the Government has already developed a substantial amount of infrastructure since the end of the war.
“Previous governments between 1979 and 2004 failed to develop the north, but President Mahinda Rajapaksa, following the end of the conflict, laid special emphasis to bring peace and prosperity to people in the north,” Minster Abeywardena told Forum.
Infrastructure developed include improvement to access roads, electricity, drinking and irrigation water, housing, sewerage and waste disposal, railway and public areas. Foreign financing secured included $ 50.8 million grant from India, Australia and the Asian Development Bank and $ 1.8 billion loans from China, India, Australia, ADB and the World Bank.
With regard to water and sanitation, for example, between 2009 and 2012, Rs. 30 billion has been invested, the Minister said, adding that more investments were being made on a continuious basis to improve social welfare. On power and energy, Rs. 6.7 billion had been spent on the Vavuniya to Jaffna 132 KV transmission line and two grid substations (Kilinochchi and Chunnakam).
Expenditure on improving healthcare services was Rs. 4.8 billion, the Minister added.
He also said the north needed a collective effort by the Government, Provincial and Local Councils and the private sector to further develop the region.
Prior to visiting Jaffna, Minister Abeywardena toured Mannar, Delft Islands and Nagadeepa on Sunday.
