Post CHOGM biz foothold in SL
View(s):A letter of intent has been given for a manufacturing project worth US$80 million, as a result of the Commonwealth Heads of Government Meeting (CHOGM) Business Forum held last month, a foreign direct investment facilitator says.
“This is an edible vegetable plant in a 25 acre extent in Gampaha district,” Sherman Gunatillake, Managing Director and CEO, SG Capital Ltd, a FDI facilitation firm told the Business Times. He said this project is partnered by a local entity and will feature an out-grower model where 10,000 farmer families will grow soya and corn.
He said this will be an import replacement industry. Sri Lanka spends $150 million yearly to import vegetable and Soya Poonac, according to Mr. Gunatillake. He said that businessmen are interested in Board of Investment ventures with strategic investment project status introduced in the last budget. He said Power Producers Agreements (PPA) are being done at present in a bid to start a 5 Mega Watt (MW) solar power project worth $30 million in Kalpitiya by a firm in Switzerland – again with a local partner. “The same parties are also considering a similar 5 MG solar project in Hambantota,” he added. Meanwhile the Export Development Board (EDB) has received over $1 billion worth of inquiries and direct orders at the ‘Reflections Sri Lanka Exhibition’ held in conjunction with CHOGM.
“We had 1428 foreign buyers visiting ‘Reflections’ and we had direct orders on gem and jewellery, apparel and spices. Among these, apparel and BPO requests had the highest value in terms of orders,” Bandula Egodage, Chairman EDB told the Business Times. The buyers were from China, UAE, Iran, Italy, South Africa, etc, he added.