Ministry of Economic Development Macro Action Plan 2011-2015 1 Presented by P B Jayasundera...

Ministry of Economic DevelopmentMacro Action Plan

2011-2015

1

Presented by P B Jayasundera Secretary, Ministry of Economic Development

Under the guidance of Hon. Basil RajapaksaMinister of Economic Development

Making the Vision a Reality

2

Divi neguma

Puraneguma

Gama neguma

Regional Growth centers

Strategic Initiatives

Self Reliant Household Economy

Backyard cultivationCottage industries, Animal husbandryMedium and long term crops

Access to Electricity, Water, Irrigation, Sanitation, Primary

Health and EducationLivelihood support and Community based economy

Empowered Community

(Villages)

Community friendly local authority Clean environmentBusiness friendly systems and procedures

Developed Townships

Connectivity through critical infrastructure developmentConnecting townshipsSetting up flagship market centers and community facilities

Shared Development

National Botanical and Zoological Gardens networkTourism EconomyPrivate Sector development

Emerging Economy

Interfacing Development

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Divineguma – Self Reliant Household Economic Units

oServicing million home economies to empowerback yard economic activities- Agriculture, Fisheries and Live stock , Small family enterprises etc by

Provision of seeds and planting material

Development of green houses , seed farms, poly tunnels, promotional nurseries, agro wells, organic fertilizer etc.

Encouraging to plant and cultivate at least three coconut plants or other trees of commercial value in each home garden

Development of cottage industries, handicrafts, artistic work , handloom enterprises and floriculture villages

Promotion of self employment

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Objectives of Divineguma- A three phase graduation

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Divineguma - Implementation MechanismCabinet Level Steering Committee (policy guidance) headed by Senior Ministers

Operational Working Group headed by the Minister

District Development Committee (participation of district political representatives and officials)

Divisional Development Committees

District Operation and Review headed by the District Secretary

Divisional Development Committees headed by the Divisional Secretary

Operational Services(Grama Niladari, Samurdhi Niladari, Govi Niladari and Family Health Officer)6

Divineguma – Million Household Economic Units

This initiative was proposed by H.E the president in the 2011 Budget, targeting one million household economies in all Grama Niladari divisions in the country

09 Public awareness meetings at national level and 38 district and divisional level meetings were conducted by the Hon Minister with the participation of Ministers and Secretaries of Line Ministries, provincial representatives and other stake holders

Initial supply of seed, guidelines, hand books etc were provided by the Ministry

As of now 1,455,187 home economic units under divineguma are functional with predominant engagement in food production 7

Inauguration of Divi Neguma Programme

Divineguma – Million Household Economic Units

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Home Garden - Valachchenai

There are 1,356,594 home garden units and 94,011 livestock farming units functioning under divineguma across the whole country Retired public servants, civil society organisations and women have taken active interest in divineguma

Poultry Farming - Horana

Divineguma – Million Household Economic Units

Under self employment support program various sectors have been identified

Mobile shops concept was introduced in urban centers by providing leasing schemes. 162 vehicles have been distributed initially in Colombo. This will be popularised in other major townships based on the demand

Pavement businesses have been re-arranged in Pettah, Nugegoda and Galle

9

Self Employment Support Program

Divineguma – Million Household Economic Units

The first stage concentrated heavily on agriculture, livestock and planting for home gardens.

Divineguma program will be extended to cover cottage industries promoting local production of gift items, local textiles, handicrafts, artistic creations, spices, bricks , clay and cement based building material etc to meet the increased demand arising from the development of various industries such as tourism , apparel , construction Industries.

Technology transfer through the initiatives of the Ministry of Technology and Research.

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Divineguma- Initial Push

Services at door step

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Gamaneguma – Empowering Each Village

Provision of rural infrastructure to have access to Electricity, Water, Sanitation , Communication, Roads, Minor irrigation

Filling gaps – Maternity and Health Care Centers, Pre-schools, Market places, storages etc on a need basis

Livelihood development – One Village-One Crop, Agriculture, Livestock, Fisheries, Trade, Self employment

Restoration of abandoned/substandard projects 12

Gamaneguma- Operational ArrangementsOverall National Program –

Ministry of Economic Development

District Development Committees(Need assessment and prioritisation)

Divisional Development Committees (Identification of projects, programs and budget)

Community Level Identification

Implementation by Community Participation13

Gamaneguma 2006-2011

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Gamaneguma – Total Solution

Access to roads Access to electricity Access to safe drinking water

and sanitation Access to small irrigation Quality health and education Livelihood development

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Gamaneguma-Empowering each VillageSmall Irrigation

During 2006- 2011 period 4,699 such small irrigation projects with a cost of Rs 1737.5 Mn have been completed in various villages scattered around Sri Lanka.

716,438 farmers got access to water to cultivate 187,960 acres.

Benefits expanded to environment and fauna and flora.

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Gonawa wewa, Anuradapura District

Ussana Irrigation scheme, Matale District

Matale- Bogahalanda Electricity Project

Gamaneguma-Empowering each Village Electricity

7,785 rural electrification projects have been implemented with a cost of Rs 2,370 Mn

These schemes have provided access to electricity to 400,467 households

It has benefited rural schools, hospitals, religious places and access to IT and computers in rural Sri Lanka

Electricity has promoted rural investment, storages, small industries and agricultural processing

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Karandeniya – Thewaththa Bridge

Gamaneguma-Empowering each Village- Access to quality road

61, 226 projects consisting of concrete roads, small bridges and improvement to rural and agricultural roads have been completed with a cost of Rs 26,124 Mn

A population of about 700,000 have gained access to such roads

Addaragoda - Kandegoda Road

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Gamaneguma-Empowering each Village- Community water

2,864 projects with each project having capacity of 5000 liters have been completed with a cost of Rs 1,133.3 Mn

A population of 504,200 have gained access to quality drinking water

Access to quality drinking water has improved health standard of the rural community

Water Supply Scheme - Adampan

19Karamba Drinking water project -

Kalpitiya

Gamaneguma-Empowering each Village- Quality housing for the poor

18,950 houses have been built through Diriya Piyasa (Samurdhi Housing) at a cost of Rs 1,201 Mn

Toilets ,and basic facilities (access to quality water) have been provided to improve low income households

Cadjan thatched and temporary houses are being converted to quality houses

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Old House Built House

Gamaneguma-Empowering each Village- Livelihood Development

14,341 livelihood projects targeting agricultural processing , livestock , handicraft, building material, light engineering, carpentry etc have been promoted.

This has contributed to high income and new employment for 2,83,876 people.

A number of households have emerged as entrepreneurs.

MOED proposes to form Samurdhi Entrepreneurs Chamber (SEC) to harness an enterprising society in villages.

Cinnamon chopping- Ratnapura

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Addressing substandard work

Regardless of who is responsible, economic development requires correction of those and put those projects right to give the full benefits to the people

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Some of the projects demonstrate substandard quality, incomplete work and inappropriate projects

Road in MutthettugalaNena Sala in Ibbagamuwa

Playground in Welgala

Distribution of resources under Gamaneguma 2006-2011

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Water

Sanitation

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Access to Basic Services

25

Achievements – country witnessed a marked reduction in poverty in 5 years

Poverty Reduction

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Samurdhi Expenditure (Rs Mn)

The reduction in poverty is reflected in the number of Samurdi beneficiaries.Despite the reduction in beneficiaries, expenditure on Samurdhi is maintained to provide enhanced assistance to deserving people.Even if we assume doubled the poverty head count at 17.2%the no of people receiving benefits account for 32.4%

The strength Samurdhi allowance scheme has generated compulsory

savings of Rs 17 Bn of which, Rs 3 Bn is on reserve It has promoted 1043 functioning Samurdhi Banking

Societies and generated voluntary savings of Rs 15 Bn Savings habits have promoted leasing and other

financing instruments supporting Samurdhi livelihood activities and enterprises

Divineguma and Gamaneguma have created the opportunities for them to move out of poverty trap

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Delivering commitment

“fid÷re njska, fifkyiska yd fi!kao¾hfhka msreKq .u ms<sn| ud olsk isyskh “.u keÕ=u” f,i h:d¾:hla njg m;a lrus'miq.sh oYl .Kkdj ;=< wfma oEia bosrsmsgoS u msrsySug ,la jq .u mqk¾cSjkh lrus'”

Mahinda Chintana- Vision for the Future-2005

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Pura Neguma- Empowering Local Authorities- Two initiatives to finance from ADB credit facility

Local Authority Empowerment Program –Uthuru Wasanthaya and Nagenahira Navodaya –

Local Authority Empowerment Program – Local Government & Provincial Council Ministry (proposed for the pradesheeya sabhas)

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Pura Neguma- Northern sector

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MosqueHouses

Community & Health Centre

Children s’ Park

Canal System

Pura Neguma – Operational Arrangements

National Steering Committee- co chaired by Minister of Provincial Council & Local Govt. and Minister of Economic Development

Implementation - by eligible Pradesheeya Sabhas (committed to simplified systems and procedures, clean environment and community

infrastructure, Sathi pola and basic needs improvement)

Funding and Supervision- Ministry of Provincial Council & Local Govt. and Ministry of Economic Development

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Implementation of 2011 Budget proposal- Sathi pola

2011 Budget proposed to modernise sathi pola, three wheel stations, mobile shops, small boutiques around religious and common places to add value to small timers at least cost

These initiatives will also provide openings for direct market access to producers and consumers without intermediaries

Does not involve heavy overheads and expenditure

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Balanced Regional Development –Interfacing by Ministry of Economic

Development Priorities – 3,000 km Intra Provincial Road Rehabilitation Program 30,000 Minor Tanks and Irrigation Rehabilitation Program Flagship common facilities-

Galle Bus StandConstruction of shops for pavement hawkers

Relocation facilities for displaced markets Selected Economic Development Initiatives-

Dutch Canal Rehabilitation to support Tourism corridor- from Wattala to Negombo (old tourism resort area)

Small townships33

Intra Provincial Roads Three year program has been designed to restore

intra provincial roads to fill gaps in road network development program implemented by RDA , Provincial councils and District secretariats

All 25 districts and 324 divisional secretariat areas will be reached simultaneously in three phases Phase I- 30,000 km of roads - 2011 Phase II- 45,000 km of roads - 2012

Phase III- 60,000 km of roads- 2013 All roads will be carpeted with concreting supports,

drainage and culverts and natural water ways34

Dambagalla Medagama Road (14.440km)

Madagama DSD in Monaragala District

Expenditure Rs. 6,191,154.52

Warakagoda Frosester Ferry Road (3km)

Bulathsinghala in Kaluthara District

Project Cost Rs. 30 Mn

Bonagala Rukgahawila Road (3.8km)

Attanagalla DSD in Gampaha District

Project Cost Rs. 38 Mn

Intra Provincial Roads

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Minor Tanks and Irrigation

Three year program has been designed to restore rural irrigation systems and abandoned systems to fill gaps in irrigation network development program implemented by the Department of Irrigation , Provincial Authorities and Agrarian Service Department

Agricultural areas will be reached simultaneously in three phases during off cultivation periods Phase I - 12,000 systems - 2011 Phase II- 13,000 systems - 2012 Phase III- 15,000 systems - 2013

All irrigation system development projects will be implemented with community participation

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Rehabilitation of Irrigation systems

Ampara Baticaloa

Polonnaruwa

Trincomalee

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Flagship Interventions

Development by various agencies have created gapsby not addressing critical common facilities (maternity clinics, bus stations, market for displaced small businesses, drainage systems ) required to maximise full benefits of Economic Development

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The Galle bus stand which was damaged by tsunami and neglected thereafter has been restored at a cost of Rs 414.7 Mn with facilities for shopping and rest areas

Model maternity clinics are being promoted with private sector support

With the urban modernisation programs,small traders occupying un authorised areas are being provided with modern facilities for their self employment activities. Two such facilities in Pettah, Nugegoda have been completed at a cost of Rs 41.0 mn

Flagship Interventions

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Need Assessment outcome (in consultation of Members of Parliament-09.08.2011 and 17.08.2011)

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Need assessment carried out in consultation with Members of Parliament gave higher priority for unattended roads and irrigation

Regional Growth Initiatives Ruhunu Udanaya Uthuru Wasanthaya Nagenahira Navodaya Sabaragamu Arunalokaya Kandurata Udanaya Wayamba Pubuduwa Rajarata Navodaya Pubudamu Wellassa Batahira Ran Aruna

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Ruhunu Udanaya- Galle, Matara and Hambantota Districts

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Ruhunu Udanaya- Interfacing with Line Agencies and Provincial Council

to integrate Ruhuna Economy with following

Promote Economic Activities revolving around Magampura port city (air port, port ) Develop connectivity between Katunayake – Hambantota corridor to benefit the surrounding Rural Economy

Promote resort development for tourism and construction of Galle Port as a Tourism Port

Support Tea and Cinnamon cultivation and promote value added industrial activities

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Ruhunu Udanaya- contd..

Transform Koggala Export Processing Zone to an Industrial Township

Assist Ruhuna University to drive Knowledge Based Economic Activities with emphasis on Medicine/Engineering

Develop International sports facilities

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Ruhunu Udanaya – selected outcomes

Palatuwa Gunarathana VidyalayaCarpeting of Mamandala- Malpettawa Road

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Uthuru Wasnthaya- Jaffna, Kilinochchi, Mullativu, Mannar & Vavuniya

Districts

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Demining Activities in North & East

Status as at 30 June 2011

To be cleared 443 SqKm

Totally Cleared Area 1,571 SqKm

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DistrictCumulative

(2002 to June 2011) m2

Remaining Hazardous area to

be cleared m2

Devices Recovered

From2002 to end June 2011

(AT, AP & UXOs)

Jaffna

33,004,149

13,130,413

196,615

Killinochchi

571,523,791

39,494,991

196,702

Mullaitivu

142,824,567

184,583,453 69,561

Vavuniya

174,178,796

31,494,489 90,348

Mannar

276,032,258

113,303,215 94,690

Trincomalee

95,232,735

16,266,644 4,428

Batticaloa

235,468,492

18,888,445 22,765

Ampara

42,876,881

24,026,481

464

Anuradhapura 174,308

2,178,935

2,584

Polonnaruwa

48,279 157,074

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Total

1,571,364,255

443,524,140

678,171

Agency Rs. MnGoSL 2772.88

HALO Trust 736.82DDG 692.7MAG 520.56FSD 1022.08

Sarvatra 408.61Horaizan 330.11MMIPE 85.62DASH 22.47Total 6591.85

Area Cleared Expenditure in 2009/2010

Demining Activities in North & East

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Uthuru Wasanthaya-Activity PlanInterfacing with Line Agencies and Provincial Council to

integrate Northern Economy with following De-mining program Resettlement and Livelihood development Restoring public service delivery –

Health Education Rehabilitation and Skills Development Civil administration and Judicial services

Strengthening the community – Local Government Services Co-operatives Religious places Samurdhi

Restoration of Banking , Financial Institutions and Trade and Commerce

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Uthuru Wasanthaya- contd..

Rehabilitation of Rural and Provincial infrastructure – Electricity Irrigation Roads Community Water Supply

Reconstruction of Highways Railways Ports Fishery harbours Major irrigation Water supply and Drainage systems Common facilities and Townships National schools Hospitals Universities

Investment promotion to attract Private Investment in Agriculture Manufacturing Tourism and services

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Uthuru Wasanthaya – Selected outcomes

Reconstructed HousesKarainagar

Giant’s tank - Mannar

Reconstructed Adampan MMV

Giant’s tank rehabilitated at a cost of Rs 289.5 Mn to provide water for 9890 Hectares of cultivation

09 Irrigation schemes including Iranamadu are being rehabilitated

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• National- A- 9 , A 32 HighwaysJaffna Teaching Hospital Jaffna water supply Yoda wewa, IranamaduVocational Training Railway KKS harbourPalali Airport StadiumJaffna University

Uthuru Wasanthaya- contd.

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Nagenahira Navodaya- Trincomalee, Batticaloa, & Ampara Districts

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Nagenahira Navodaya-Activity Plan Interfacing with Line Agencies and Provincial Council

to integrate Eastern Economy with following

Restoration of housing for resettlement Strengthening Social infrastructure Restoration of Economic infrastructure-

Electricity Railways Roads Water supply and Sanitation Major irrigation and Flood protection

Reconstruction of bridges to re establish connectivity54

Nagenahira Navodaya- contd..

Promoting agricultural base for surplus production of Paddy, Maize, Fisheries, Livestock

Private sector investment promotion in Storages, Marketing, Processing ( paddy milling), Fruit and Export agriculture zone in Maduru Oya

Investment promotion in industries in Cement, Mineral sand and Industrial zones

Promoting Tourist resorts , Beaches,

Wild life and Bird sanctuaries

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Nagenahira Navodaya -selected outcomes

Renovation of Anchorage Trincomalee

Re construction of Irakkandy Bridge

Renovation of Mayadunna Vidyalaya- Ampara

Fish Market - Baticaloa56

Sabaragamu Arunalokaya-Kegalle and Ratnapura Districts

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Sabaragamu Arunalokaya –Interfacing with Line Agencies and Provincial Council to integrate Sabaragamuwa Economy with following

Improvement of National and Provincial roads Construction of Urban water supply schemes Rehabilitation of Chandrika Wewa Horticultural centers in Kuruwita, Ratnapura

and Kegalle

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Sabaragamu Arunalokaya – contd..

Replant and cultivate Plantation Crops Develop Ratnapura as a Gem cutting and

processing center Promote Echo Tourism and Leisure activities,

centered around Pinnawala Zoological Garden and Elephant Orphanage

Develop Sabaragamuwa University and use as a resource center for regional development

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Sabaragamu Arunalokaya- Selected outcomes

Elephant Orphanage - Pinnawala

Carpeting Gange yaya- Kolonna Road Reconstruction of Galbokka Tank- Embilipitiya

Animal Reproductive Center- Imbulpe

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Wayamba Pubuduwa-Kurunegala and Puttlam Districts

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Wayamba Pubuduwa –Interfacing with Line Agencies and Provincial Council

to integrate Wayamba Economy with following

Rehabilitation and expansion of Provincial and National Road network

Diversion of Deduru Oya and Expansion of Irrigation Facilities- Deduru Oya (to feed 200 small tanks and supply water for 30,000 hectares of new land for cultivation)

Development of Kalpitiya Tourist Resort andWilpattu National Park to develop Tourism

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Wayamba Pubuduwa- contd..

Securing and restoration of Cultural and Archeological sites (Dambadeniya, Paduwasnuwara ,Yapahuwa and Thonigala)

Development of Paddy, Coconut, Fruits and Vegetable cultivation and Inland fisheries and Aquatic resources

Project Wayamba University as a resource center for Agriculture ,Food technology and Business management

63

Wayamba Pubuduwa – selected outcomes

Rehabilitation of Pathragala TankCarpeting Mawathagama- Lihiniyagala Road

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Rajarata Navodaya- Anuradapura and Polonnaruwa Districts

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Rajarata Navodaya –Interfacing with Line Agencies and Provincial Council

to integrate Rajarata Economy with following

Rehabilitation of all major irrigation systems and down stream facilities

Transform the un irrigated part of Rajarata through Moragahakanda Irrigation Project to provide water to Weli Oya and Madawachchiya

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Rajarata Navodaya – contd..

Establish Road and Railway connectivity to Anuradapura to make it a hub city

Develop Anuradapura sacred city and preserve archeological sites

Promote paddy, maize, fruits, vegetables, inland fisheries and food processing facilities

Rajarata University to become a resource center

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Rajarata Navodaya- Selected outcomes

Rehabilitation of Poodoor Anicut - Thamankaduwa

Rehabilitation of Alaadioodaya Canal

Pre school - Dimbulagala50 ft long Bridge in Divulwewa68

Kandurata Udanaya-Nuwara Eliya, Matale & Kandy Districts

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Kandurata Udanaya –Interfacing with Line Agencies and Provincial Council to

integrate Kandurata Economy with following

Promote Kandy sacred city Develop Nuwara Eliya , Kandy and Dambulla

as Tourism cities Develop Botanical Garden network Peradeniya University township Conservation of Hydro electricity resources in

the province

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Kandurata Udanaya – Selected outcomes

Tourist Attractions

Wewalawewa Elevated Irrigation

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Pubudamu Wellassa-Badulla & Monaragala Districts

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Pubudamu Wellassa -Interfacing with Line Agencies and Provincial Council

to integrate Wellassa Economy with following

Diversion of Uma Oya Uva Wellassa University township Development of Tea, Rubber, Paddy and

Vegetable plantation Connect the land locked province to South

and East

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Pubudamu Wellassa – Selected outcomes

Eladaluwa- Mudunpita Road

Moretota- Katugaha Road74

Batahira Ran Aruna-Colombo, Kalutara and Gampaha Districts

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Batahira Ran Aruna –Interfacing with Line Agencies and Provincial council to integrate Western Economy with

following

Develop Floriculture Zones and Tropical fruit Zones Promote Small holder Agriculture and develop

Coconut plantation and Fisheries industry Introduce under-passes and by-passes to

remove city congestion and facelift urban townships

Develop Dutch Canal and associated area as a Recreation and Tourism Belt

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Batahira Ran Aruna – contd..

Develop Emerging Economic activities associated with Air port, Express way, Outer Circular Highway, Southern Expressway and Associated townships (Kerawalapitiya, Peliyagoda, Kadawatha, Kaduwela and Kottawa etc) and The Port City and Colombo

Develop ancillary facilities around Fish market and Vegetable market in Peliyagoda

Transform Export Processing Zones in Katunayake, Biyagama, Wathupitiwela, Malwatta and Horana into new townships and ease the road congestion

Promote Knowledge Economic Centers linking to National Universities located in the province

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Batahira Ran Aruna -Selected outcomes

Construction of Low Level Road- Kolonnawa

Construction of MOH building- Weliweriya

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Development of Recreation and Leisure Facilities

Corporate strategy for Department of Zoological Garden (approved by cabinet on 28.09.2010)

Establishment of a safari park in a 500 acre land at Ridiyagama

Setting up of a new Zoological garden in Kegalle Modernisation of Dehiwela Zoological Garden to provide

breeding centers , better waste disposal system and improve internal access roads and staff quarters.

Encourage industries to supply local products for shopping, restaurants and entertainment to popularise zoological facilities among both local and foreign tourists

Upgrade and maintain sorrounding infrastructure

79

Zoological Gardens(Dehiwela & Pinnawela) Visitors Arrival (No), Earnings (Rs Mn)

Department of National Zoological Gardens- New development initiatives

Safari Park - HambantotaConstruction of Animal Hospital

Improvements of Dehiwela Zoo

Improving access roads including for differently abled visitors

Developments in Elephant Orphanage -PinnawalaConstruction of Feeding hut

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Sheds in Elephant free living enclosureRenovations to Butterfly park

Dehiwala zoo

Internal Access Roadstores and supplies building

Pinnawala

82

Development of Recreation and Leisure Facilities

Corporate strategy for Botanical Gardens Improvement of common facilities (toilets , reception center,

restaurants, shopping , access roads and staff quarters) of the existing Botanical Gardens at Peradeniya, Gampaha, Hakgala, Ganewatta etc

Development of new Botanical Gardens in Hambantota and Avissawella

Promote horticulture zones , flower shops and household and micro cultivation for exports

Create small urban Botanical Gardens/ forestries in selected government lands to add environment value to emerging cities

83

Botanical Gardens Visitors Arrival (No), Earnings (Rs Mn)

84

New Botanic Gardens in Avissawella and Hambantota

Water Garden, Avissawella Cactus Collection, Hambantota

Orchid collection, Hambantota Great Lawn, Avissawella85

Tourism Economy

Reforms – Setting up a single authority for promotion and

regulation of tourism in place of prevailing multiplicity of organisations

Tourism promotions to be collectively undertaken by Tourism Development Authority, BOI, Tea Board, EDB, Sri Lankan Air Line and Private sector

TDA promotional offices to be attached to Sri Lankan missions abroad and linked to Sri Lankan Air Line country offices.

86

Tourism Economy-Key Initiatives Promotion and Development–

Development of language skills in Chinese, Japanese and Russian EtcVocational Skills development for tourism trade One stop approval processSimplified land alienation on leases and based on up front paymentsPromotion of Home-stay tourismRefurbish old heritage homes & walauwas to accommodate elite high spending tourists Promotion of lesser known local tourist destinationsUpgrading of common facilities in tourist stopovers (toilets, rest areas, shopping)

Sponsorship of coffee table books , specialised events and preparation of tourist s’ guides and hand books etc.Attraction of Internationally renowned Hotel ChainsIntegrate with diversified economic activities to increase backward integration (harvesting, crafting, fishing, cultural and religious activities)Promotion of museums, temples, churches , heritage sites.

Regulations –

Minimum rate for 5 star hotelsStrict enforcement of standards

87

Capacity creation

88

July 2010 Foundation Laying Ceremony

May 2011 Opening Ceremony

Malu Malu Resort Passikuddah- 60 Room Luxury Boutique Hotel

Several new projects are gradually adding to promote Sri Lankan Tourism products

Tourism Zones

Jaffna

Kalpitiya

Colombo

Sigiriya

Hill Country

Kuchcheweli

Passikuddah

Arugambay

BentotaHambantota

Negombo

Anuradapura

Polonnaruwa

Yala

Galle

Ratnapura

90

Tourism Zones

Developing Tourism Corridors through private investments

Passikudah Kalpitiya Kuchchuveli Negombo Yala Kandy- Dambulla- Nuwara Eliya Anuradapura Bentota - Hikkaduwa

91

New markets

India China Japan South Korea Russia Australia ( far east) – Colombo- Middle East Europe linked markets- London,Paris, Frankfurt, Zurich and

linked to North American markets Networking and market penetration through Sri Lankan Air

Lines / Mihin Lanka fleet expansion to 20 air crafts by 2011 and 30 air crafts by 2013 and facilitate other international air lines to promote Sri lanka as a destination.

Direct flights to India, Japan, China, Russia, Europe, Middle East, Philippines, Indonesia and Bangladesh

92

Developed and Emerging Economies in Asia will be the key targeted markets.(Per capita income and upper income families in these Economies are on the rise)

Market Focus- Biased towards high spending Tourists

Sri Lankan Tourists- 5 Mn Indian - 300,000 Chinese- 150,000 Japanese- 50,000 Russian – 100,000 Korean - 50,000 Australian – 100,000 Middle Eastern- 100,000 European - 200,000 Transit – 500,000

93

Activity Focus

Wild-life and environment– 100,000

Sports - 200,000

Culture - 300,000

Beaches – 300,000

Business - 50,000

Knowledge activities - 100,000(conventions/seminars and conferences)

94

Tourists Arrivals2000-2011 up to August

95

Annual Room Occupancy Rate (Graded)

96

Receipts from Tourists (Rs Mn)

Investment strategy- Emerging Economy with Wider Boundaries

To raise investment to 33-35 percent of GDP by 2015 to accelerate and sustain economic growth in excess of 8 percent

The composition of total investments to be as follows:

97

Past Present FuturePublic 3-4% 6% 6.5-7%Domestic private 17-18.5% 19-20% 21-24%FDI 0.50% 1-1.15% 2-4%

Past Present FuturePublic 3-4% 6% 6.5-7%Domestic private 17-18.5% 19-20% 21-24%FDI 0.50% 1-1.15% 2-4%

Gradual push on Investment

98

Planned Investment strategy

Promotion of investments for i. Basic industries – Cement (USD 450 Mn), Tyre (USD 75Mn),

Steel (USD 75Mn) , Textiles (USD 100 Mn) , Pharmaceutical (USD 200 Mn) , Agriculture (USD 50Mn) , Dairy and milk food (USD 500 Mn) to replace imports Total import of these items is USD 1500 Mn

ii. Tourism (USD 2500 Mn) , IT/BPO (USD 100 Mn) , Branded garments and Logistic hubs (USD 200 Mn ) and

Gems (USD 50 Mn) Potential additional foreign exchange earning over next 3-5 years is around USD 4,000 Mn

99

Planned Investment strategy contd..

Promotion of investments for

iii. Exports of value added Tea (USD 100 Mn), Rubber (USD 100 Mn), Cinnamon and spices (USD 100 Mn) and Handlooms (USD 50 Mn) Export earning potential is around USD 2,000 Mn and employment potential is huge

iv. The development of emerging regions under the regional development initiatives (promote domestic investment)

v. Commercial infrastructure Port terminals (USD 1000 Mn), Renewable energy and Power generation (USD 1000 Mn), Waste disposal (USD 500 Mn),Industrial zones / IT parks (USD 200 Mn) Etc

vi. Urban Property development (USD 500-750 Mn)

100

Incentives for Investment

Applicable concessions – 3 year tax holiday commencing from the date of commercial

operation for investments within Rs 50 – 300 Mn

5-7 year tax holiday commencing from the date of commercial operation for investments over USD 3 Mn

Up to 25 year tax holiday for strategic investments Deferment of VAT and exemption of custom duty, PAL during project

implementation period to reduce up front cost on capital BOI Law to provide Exchange control and Visa concessions for FDIs Simplified Import and Export control system under Import control

Gazette of September 2011

101

Barriers to Investments

Non compliance by line agencies to investment decisions

Time consuming approval process (from Cabinet to pardesheeya sabhas and other involved agencies)

Indecisive decision making process involved in business disputes/frustrations at Customs, Tax Dept., Exchange control, Import control

No proper follow up by officials in institutions (BOI,UDA, TDA )

Absence of accepted pricing formula and guaranteed procurement arrangement which create uncertainties

102

Strategic Development ProjectsStrategic Development Projects Under Implementation :

Shangri-La Hotel Lanka (Pvt) Ltd. – Colombo - Project - 283 Mn

10 acre Land - USD 125 Mn

Shangri-La Investment Lanka (Pvt) Ltd – Hambantota- USD 120 Mn

Petroleum Exploration- Cairn Lanka (Pvt) Ltd. – Mannar – USD 125 Mn

Expansion of Ceylon Steel Corporation (CHICO) – Athurugiriya- USD 70 Mn

Pipe Line Projects : Almost ready to kick-off

Mixed Development Project (CATIC/AVIC) – Colombo- USD 450 Mn

Colombo South Container Terminal – USD 500 Mn

2X250 MW Coal Power Plant – Trincomalee –USD 500 Mn

Magampura Port City Investment projects –USD 600Mn

(Sugar refinery, fertiliser and chemicals ,cement and vehicle assembly)

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Moving to Emerging Regions (Private Investments)Moving to Emerging Regions (Private Investments)

Company Name Location Investment (USD Mn)

No of Employees

Omega Line (Pvt) Ltd. Vavuniya, Rajandrakulum

20 990

Orit Trading Lanka (Pvt) Ltd. Vavuniya, Manik- Farm

6 1800

Timex Garment (Pvt) Ltd. Mannar Industrial Estate

2.3 500

Fergasm Grament Ind. (Pvt) Ltd.

Mannar Industrial Estate

2.3 500

Brandix Apparels Ltd. Batticaloa, Punani 9 600

MAS Active (Pvt) Ltd. Achchuveli Industrial Estate

3 500

Total 42.6 4,890

Medium Term Investment Plan- FDI

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Outcome Expected - 2015

Emerging Middle Income Economy status with USD 5000 Economy Self Reliant Household Economy Empowered Villages & Poverty free Sri Lanka Position the Country to enter the 3rd phase of Mahinda Chintana in

2016

Phase I – 2006 - 2010 USD 1000 2400

Phase II – 2011- 2015 USD 2700 5000Phase III - 2016 - 2020 USD 5000 7500/ 10,000

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Outcome expected -2015

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Proposals to be considered

Divineguma to take to the 3rd Phase for value added activities

Rationalise wide range of Samurdhi allowances and promote micro credit through Samurdhi Banking societies to empower Divineguma and self reliant households

Gamaneguma to target 20,000 small villages to fill gaps in road access, drinking water, irrigation etc

Strategise a marketing campaign for new Sri Lanka that promotes Exports , Tourism and Investment

Promote 20 Apparel / Handloom factories in emerging districts

Pursue FDI through already established foreign investors108

Reforms In the Ministry

Samurdhi Authority of Sri Lanka

Department of Commissioner General of Samurdhi

Department of Up- Country Peasantry Rehabilitation

Southern Development Authority

Uda Rata Development Authority

Department of National Zoological Garden

Department of National Botanical Garden

Sri Lanka Tourism Promotion Bureau

Sri Lanka Tourism Development Authority

Sri Lanka Convention Bureau

Sri Lanka Institute of Tourism & Hotel Management

Board of Investment of Sri Lanka (BOI)- with full time DG 109

Proposed Divineguma integrated rural development department with three divisional offices in south, central and north

Sri Lanka Tourism Authority (SLTA)

Present

Thank You

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