Govt. to expand available infrastructure at free trade zones for business expansion

The Ministry of Industrial Export and Investment Promotion said the rapid construction of infrastructure at the FTZs and EPZs was also a key promise outlined in the manifesto 'Visions of Prosperity and Splendor' by President Gotabaya Rajapaksa.

The GoSL has recognised the need to develop drinking water facilities within FTZs and EPZs and has instructed the competent authorities to submit a proposal for project implementation Ranatunga reported that Rs. Five hundred forty million had already earmarked for the construction of drinking water facilities in the Seethawakapura FTZ, where 24 factories with 22,534 employees are working.

The Investment Board (BOI) has built 15 FTZs across the country, the oldest being Katunayake FTZ, founded in 1978. Katunayake FTZ currently employs 137,478 employees at 81 factories while Biyagama FTZ, which opened in 1985, has 55 factories and employs 28,588 workers. Koggala FTZ has 19 factories, using 14,689 people.

The government has already established a 200-acre stretch of land to develop a new FTZ in Eravur, in the Eastern Province's Batticaloa District. They will provide essential infrastructure, and the environmental impact assessment (EIA) reports have taken. However, he said the ministry is now finding potential investors for the new FTZ in Eravur. Special attention has also been given to resolving issues in industrial zones Bingiriya and Wagawatta, the minister said.

While the growth routes of these high-growth Asian economies may not replicate, their growth experiences involve lessons and plans from which Sri Lanka can learn. Economic reforms are vital if Sri Lanka is to unleash its true potential for development.

The key to enormous economic growth is export-oriented industrial development funded by private capital, especially foreign direct investment. Hence, Sri Lanka requires a solid export development policy and a regionally competitive incentive framework to attract large-scale foreign direct investment in this context.

OSL Take: The latest report by the Central Bank of Sri Lanka highlighting the decrease in the trade deficit, increase in the tea export revenues, and the easing of pressure on the rupee is all indicative of an economy on a buoyant growth path. International lending agencies have recognised Sri Lanka's economic policies like the IMF, World Bank, and ADB, which have expressed confidence in Sri Lanka and expressed willingness to assist the country.

The country’s economic policies have also helped the growth of several key industrial sectors in the country. Hence, this has resulted in the opening of many business/investment opportunities along with the aggressive development program undertaken by the GoSL. The country is, therefore, a hotbed for foreigninvestments, and interested businesses/investors could explore opportunities inSri Lanka.

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