ministry of economic development macro action plan 2011-2015 1 presented by p b jayasundera...
TRANSCRIPT
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
3
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
4
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.
10
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
15
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.
16
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
17
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
18
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
20
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
21
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
22
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
23
Water
Sanitation
24
Access to Basic Services
25
Achievements – country witnessed a marked reduction in poverty in 5 years
Poverty Reduction
26
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
27
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
28
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)
29
Pura Neguma- Northern sector
30
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
31
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
32
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
35
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
36
Rehabilitation of Irrigation systems
Ampara Baticaloa
Polonnaruwa
Trincomalee
37
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
38
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
39
Need Assessment outcome (in consultation of Members of Parliament-09.08.2011 and 17.08.2011)
40
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
41
Ruhunu Udanaya- Galle, Matara and Hambantota Districts
42
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
43
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
44
Ruhunu Udanaya – selected outcomes
Palatuwa Gunarathana VidyalayaCarpeting of Mamandala- Malpettawa Road
45
Uthuru Wasnthaya- Jaffna, Kilinochchi, Mullativu, Mannar & Vavuniya
Districts
46
Demining Activities in North & East
Status as at 30 June 2011
To be cleared 443 SqKm
Totally Cleared Area 1,571 SqKm
47
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
14
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
48
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
49
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
50
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
51
• 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
53
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
55
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
57
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
58
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
59
Sabaragamu Arunalokaya- Selected outcomes
Elephant Orphanage - Pinnawala
Carpeting Gange yaya- Kolonna Road Reconstruction of Galbokka Tank- Embilipitiya
Animal Reproductive Center- Imbulpe
60
Wayamba Pubuduwa-Kurunegala and Puttlam Districts
61
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
62
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
64
Rajarata Navodaya- Anuradapura and Polonnaruwa Districts
65
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
66
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
67
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
69
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
70
Kandurata Udanaya – Selected outcomes
Tourist Attractions
Wewalawewa Elevated Irrigation
71
Pubudamu Wellassa-Badulla & Monaragala Districts
72
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
73
Pubudamu Wellassa – Selected outcomes
Eladaluwa- Mudunpita Road
Moretota- Katugaha Road74
Batahira Ran Aruna-Colombo, Kalutara and Gampaha Districts
75
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
76
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
77
Batahira Ran Aruna -Selected outcomes
Construction of Low Level Road- Kolonnawa
Construction of MOH building- Weliweriya
78
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
81
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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