Our Genetic Endowments

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Our Genetic Endowments

Learn ability

1980’s – Cricket

1996 – Cricket world cup

Adaptability

1980’s – Lingerie exports to US

2011

Intellectuality

King Ravana’s Aircraft

10% of NASA Scientists are Sri Lankan

Professionalism

1983- CIMA / SL Branch

Worlds 2nd largest pool of Qualified professionals

Never Change…!

Million years ago….

Still Friendly and Hospitable!

Sri Lanka - Emerging Wonder of Asia

Sam WijesekaraCounsellor / CommercialSri Lanka Deputy High CommissionChennai

Sri Lanka: The Wonder of Asia

B y 2 0 1 6

USD 4,000 per capita income

GDP growth above 8% on average ($ 100bn by 2016)

2.5 mn tourist arrivals per annum

Over 10 sectors contributing USD 1 billion each in export earnings

Private investment around 22-24% of GDP (now 18-20% of GDP)

FDI to be around 5% of GDP (2011-2% of GDP*)

ICT literacy rate to increase to 75% from 30% at present

2nd International Air Port & more than 5 International Sea Ports

Sri Lanka as a Dynamic Global Hub – Five Hub Concept

Overview of the Sri Lankan Overview of the Sri Lankan EconomyEconomy

Source: Central Bank of Sri Lanka

GDP per Capita

Movement in Inflation

Central Bank Statistics

• Economic growth of 8.3% amidst a global recession and increasing commodity prices in 2011.

• Inflation reduced from over 20% in 2008 to approximately 5% in Q4 2011.

• Per capita GDP almost doubled between 2005 and 2010.

• Unemployment rate declined from 5.8% to 4.3% in 2011.

• Expected tourist arrivals in 2011 to be 800,000 increase of over 23%.

12411421

1617

2014 20572399

2830

0

500

1000

1500

2000

2500

3000

2005 2006 2007 2008 2009 2010 2011-Est.

USD

GDP Growth

6.2

7.76.8

6

3.5

8 8.3

0123456789

2005 2006 2007 2008 2009 2010 2011Est

GDP %

International Confidence

Towards Right DirectionSri Lanka

(latest available data)

No - 1 SAARC Rating

DB Index 98 89^ Singapore 1

Competitive Index 62 52 ^ Switzerland 1

Economic Freedom Index

120 107 ^ Hong Kong 1

Gender Gap Index 16 Iceland 1

Civic Engagement Index (Friendly Index)

8 USA 1

GDP Growth 8.3%

Towards Right Direction

2011

Infrastructure

Colombo AirportColombo Airport

Passenger movement5 Mn / Annum

Cargo movement250,000 tons / Annum

Highest number of flights to India from any country

New Airport inthe Southern Region

Colombo PortColombo Port

Colombo South port development (under construction)

3 days transit time to Singapore

• Centrepoint on the East/West sea routes

• Gateway to the Indian subcontinent

World Port Ranking • No. 1 in South Asia• Total container throughput 4 Mn.

TEUs• Transshipment cargo 70%

Capacity to be increased - 11.7 million TEUs

TelecommunicationsTelecommunications

– SEA-ME-WE IV (Connectivity Bandwidth -

1.32 terabits per second)

• Sri Lanka is being developed as regional hub for telecommunications• Fastest growth sector driven by public private partnership• Development of faster and more efficient technologies• Fiber Optic Cables with

SEA-ME-WE IV fiber cable network

PowerPower

4. Pipeline projects

• LNG Power & LNG Terminal

• India Sri Lanka high-tension Power Connection (Study complete)

1. Main power sources- Hydro - 49%- Thermal - 49%

- Other - 2%2. Projects under construction

• Norochcholai Coal Power Project • Upper Kothmale Hydro Power Project•Sampoor coal power project (NTPC)3. Future requirements

• Total existing capacity- 2817 MW

• Additional capacity by 2015 - 2500 MW

Norochcholai Norochcholai Coal Power Coal Power ProjectProject

Norochcholai Norochcholai Coal Power Coal Power ProjectProject

Upper Upper Kothmale Kothmale Hydrol Hydrol Power Power ProjectProject

Upper Upper Kothmale Kothmale Hydrol Hydrol Power Power ProjectProject

Energy DevelopmentEnergy Development

Expressways & HighwaysExpressways & HighwaysNorthern Highway

Colombo-Kandy Colombo-Kandy HighwayHighway

Outer Circular Highway

Hambantota

Matara

ColomboColombo

KandyColombo-Colombo-

KatunayakaKatunayakaHighwayHighway

Anuradhapura

Jaffna

Southern Highway

Southern Highway Extension

Katunayaka-Anuradhapura

Highway

• Colombo - Airport Expressway (25km)

• Southern Highway (130km) (Declared opened!)

• Outer Circular Highway (28km)

• Colombo - Kandy Highway (98km)

• Katunayake - Padeniya - Anuradhapura (153.3km)

Trade Opportunities

Indian Exports - $ Bn

0

0.5

1

1.5

2

2.5

Sri Lanka Malaysia Thailand Russia Canada Australia

Switzerland Sweeden Denmark New Zealand

Unexplored trade / Import into India with no Duty

Sample out of ‘000 potential productsProduct Avg. Import

Growth in IndiaSri Lanka export value to world

Leading markets of Sri Lanka

Women underwear

82% $ 140mn Europe, US

Bicycles (not motorized)

58% $ 55mn Europe

Tobacco 69% $ 19mn Europe

Diamonds (VAd) 41% $ 271mn Europe

Sacks and Bags 35% $ 24mn US, Europe, Asia

Zero duty access products

Apparel (3mn Pieces) Tea (15mn kgs) Fisheries Products Diamond Gem & Jewellery Electrical & Electronic Products Ceramic & Porcelain Wooden Products All products falling under HS Chapter 63

to 96

Sri Lanka Potential Exports to India

Potential products to India (US $ Mn)

India :77%,Pakistan:10%,Maldives:7%

Bangladesh: 5% Others 1 %

Ceramic1.1 (0.22%)

Tea1.41 (0.3%)

Apparel36.18 (7.64%)

32

Thrust Export Sectors

Other (Competitive) Export Products

Unexplored trade / Export to Sri Lanka Sample out of ‘000 potential products

Product world Imports of SL

India export value to world

India exports to SL

Sugar 340mn 204mn 34mn

Polyethylene 60mn 15mn 0.6mn

Electric apparatus for line telephones

49mn 136mn 0.8mn

Transmission apparatus

32mn 2bn 0.07mn

Garlic 31mn 8mn 0.2mn

Instruments

Indo Lanka Free Trade Agreements (ILFTA)

- since 2000 ( more than 4,000 items are freely tradable) Investment Promotion & Protection Treaty

- since 1997 Double Taxation Avoidance Treaty

- Since 1983 Constitutional Guarantee for FDI (Article 187)

Sri Lanka – the “Logistic conduit” for Market Access

Indian Continent

Sri Lanka – the “Trade conduit” for Market Access

GSP

Pakistan

India

China

S/ Korea

Investments

Targeted SectorsTargeted Sectors

Tourism / Recreation

Infrastructure (Roads, Ports, Hospitals, Township

development, Construction of Houses/Industrial Zones/IT parks)

Garments & Textiles

IT and IT Enabled services/ Education

Value added Agro-based industry/Food processing

Utilities (Telecom, Power, Energy)

Other Export oriented projects

Granting of Tax Holidays for identified sectors from 4 to 12 years depending on the Investment value and scale of enterprise.

Duty Free Imports : Capital Goods and Raw materials (for Export Oriented Activities) Capital Goods only (for all other categories)

Exemption from Exchange Control : For Companies that export goods and

Services

Investment IncentivesInvestment Incentives

Strategic Development ProjectsStrategic Development Projects

Identification of Strategic Development Projects• Projects of national interest and likely to bring major

Economic and Social benefits to the country.• Projects that would change the landscape of the

country.

Incentives under SDP Act• Longer Tax holidays• Concessionary Tax Rates • Exchange Control Exemption• Import Tax Concessions

NTPC - Strategic Development ProjectStrategic Development Project

25 years cooperate tax holiday 05 years custom duty/VAT/PAL/NBT exemptions for

project related goods 25 years custom duty/ VAT/PAL/NBT/Excise exemptions

for coal / spare parts imports. Exemptions on withholding tax on interests paid Exemptions on withholding tax Technical fee paid to

consultants.

Sampoor, Trincomalee DistrictUS $ 500mn Investment2x250 MW power projectBOO Project

Portfolio of Leading Global Investments in Sri Portfolio of Leading Global Investments in Sri LankaLanka

Indian Investments in Sri Lanka(under Section 17 of BOI)

0

20

40

60

80

100

120

140

US$mn

2003 2004 2005 2006 2007 2008 2009 2010 2011(Jan-Sep)

Indian Investments

Cumulative FDI growth from India

Number of Existing Companies - 95

Total cumulative FDI (actual) - US$ 644 mn

Cumulative FDI growth

US$ Mn

Leading Indian Investments in Sri LankaLeading Indian Investments in Sri Lanka

Tourism

अपि� स्वर्ण�मयी� लङ्� का� न म� लक्ष्मर्ण रो�चते� जनन� जन्मभू�मिमश्च स्वर्गा��दपि� र्गारो�यीसी�

"Lakshmana, even this golden Lanka does not appeal to me,

mother and motherland are greater than heaven."

Great epic -Ramayana

Authenticity, Compactness, Diversity

Pristine Heritage Scenic Wild

Festive Thrills Bliss Essence

‘8 wonderful experiences in 8 wonderful days’

Genetics at work

Best Destination to go 2010- New York Times National Geographic 2010 – 2nd best tourist destination Conde naste Travel Magazine 2011- Hottest destination to travel

2012 World Civic Index- 8

Tourism Sector OpportunityTourism Sector Opportunity •Target of 2.5 million arrivals by 2016.

•Hotel room capacity to increase from 15,000 to 50,000 by 2016.

•Targeting of higher spending tourist

•Opportunities for Leisure and Recreation related investments

Source: Sri Lanka Tourism Development Authority

2010 2016

Source: Sri Lanka Tourism Development Authority

Tourism Sector

Invitation toSri Lanka EXPO 2012

28-31 March 2012Colombo

Why Sri Lanka Expo 2012

Sri Lanka Expo 2012

Events at Sri Lanka Expo 2012

Exhibition Venue Sirimavo Bandaranaike Memorial Exhibition Centre

Promotional Package

3 nights hotel accommodation on BB basis Internal transport B 2 B meetings & factory visits arranged on

requests

Trade delegations

Ministerial delegations & Journalists

• Air travel and accommodation

Thank You

For more information, visit

www.srilankaexpo.com