BOI processes $ 604 m investment projects up to May

Investment Promotion State Minister Dilum Amunugama

BOI Director-General Renuka Weerakone

• Investment Promotion State Minister Dilum Amunugama says appetite for FDIs has gotten better after gradual stability in political and economic climate
• Confirms $ 210 m FDIs were realised in Q1; full year target is $ 2 b
• Plans for expanding more zones under BOI, especially in Northern and Eastern provinces
• Announces plan to set up a cannabis growing, export processing zone with investors

Investment Promotion State Minister Dilum Amunugama on Friday revealed that $ 604 million worth of projects had been processed by the Board of Investment as the country aims for a $ 2 billion full year target. 

He said the BOI has got investment commitment of $ 604 million in the first five months of 2023, with 22 new projects and six expansions.

The State Minister asserted that there is an appetite for foreign direct investments (FDIs) as the country has gotten into a more stable political and economic climate.

“China’s Sinopec and two other parties are exploring a refinery project in Hambantota, for which the Government is giving 400 acres of land,” Amunugama told journalists.

BOI Director-General Renuka Weerakone said a total of $ 210 million FDIs were realised in the first quarter.

The investments were mainly from sectors such as hotels, construction, logistics and warehousing, agriculture, apparel, and manufacturing services from countries including Germany, Australia, UAE, Singapore, the US, UK, France, Hong Kong, China and local investors.

In terms of sectoral FDI flow, the State Minister said the BOI registered a better performance in manufacturing with a 78% growth, telecommunications at 57% and port development at 329%.

“Despite the multiple external and internal challenges, the BOI managed to secure a 38% increase in Foreign Direct Investments (FDIs) to $ 1.07 billion in 2022 from $ 780 million in 2021.

The State Minister also said the BOI-registered merchandise exports accounted for $ 9.38 billion with a 7% increase year-on-year from $ 8.78 billion in 2021.

Employment generation had a marginal growth of 3% YoY to 500,664 in 2002. “In comparison to 2021, a total of 14,332 new employment opportunities were generated in 2022,” he added.

He also disclosed that the Government was exploring a mechanism to set up a cannabis growing and export processing zone with the investors.

“A committee has been appointed to look into growing cannabis for export purposes and a feasibility report has been completed,” Amunugama said, noting that the Government has tapped international experts to help devise a set of rules to govern cannabis growing and processing.

“How we do it is being discussed currently. We are working with the experts, and the investors –mostly foreign, so that we will not have disputes later once we lay the rules. The investments will be contained within a zone once the rules are finalised,” he explained.

As per the State Minister, several investors have expressed interest. “They will not only have to grow it, but manufacture a product which will be a value addition,” Amunugama said.

He said cannabis has multiple purposes, particularly for medicinal purposes and as an economy it was time that these products were looked at in a more viable commercial manner, emphasising that this is why the Government is working on a comprehensive approach with regulatory frameworks.

The State Minister also stressed Government plans for expanding more zones under the BOI, especially in Northern and Eastern provinces.

These include Kappalthurai in Trincomalee District (Eastern Province), Paranthan Chemicals Corporation in Kilinochchi District, Kankesanthurai Cement Corporation Premises in Jaffna District, Mankulam in Mulathive District (Northern Province), Iranwilla and Bingiriya Phase II (Northwestern Province).

- Pix by Lasantha Kumara