BOI

1 BOI. SRI lanka . Board of Investment of Sri lanka Ministry of Economic Development 1. CONTENTS. Message from the Chairman 4. BOI Profile 5. - Objectives & Role 5 - Vision & Mission 6. - Board of Directors 7 - Senior Officers of the BOI 8 Overview 9. - Key Events & Highlights 9. - Sri lanka Investment Outlook 2013 10. - World Investment Scenario 2012 12. - Investment Performance 17 Departmental Performance 25. - Director General's Secretariat 25 - Investment Promotion and Facilitation Department 25. Sector Group I 25. Sector Group II 30. Sector Group III 41. - Research & Policy Advocacy Department 45. - Investor Services Department 45.

2 - Monitoring Unit 48. - Legal Department 53. - Technical Services Department 54. Export Processing Zones/IP/EPP 55. - Environment Management Department 56. - Engineering Approvals & Special Projects Department 58. - Industrial Relations Department 60 - Information Technology Department 61. - Media & Publicity Unit 63. - Administration Department 64. - Security & Fire Department 65. - Human Resources Management Department 69. - Finance Department - Internal Audit Department 76. Financial Review 77 - Revenue 77 - Operating, Administration Expenses & other Expenses - Government Levies and Finance Expenses - Capital Expenditure - Income Statement for the year ended 31st December 2013 - Comprehensive income statement for the year ended 31st December 2013.

3 - Statement of Financial Position as at 31st December 2013 - Cash Flow Statement for the period ended 31st December 2013 - Notes to the Financial Statements 2. Audit Reports - Report of the Auditor General 101 - Comments for the Observations in 121. the Report of the Auditor General - Report of the Audit Committee 139. Directory of BOI Offices 140. 3. Message from the Chairman Reflecting on this year's performance of the Board of Investment, we truly have had a fruitful year, gaining momentum with our growth in Foreign Direct Investment. With many landmark events and promotional activities taking place, the number of high quality investors and key investment projects has been pouring into the country.

4 This year Sri lanka has seen many State Leaders and key business delegations and high profile investors. The BOI has also joined hands with banking giants in Japan and the Seychelles Investment Board who would be assisting Sri lanka in attracting investors to the country with their broad network around the region. With the rising wave of the economy in Sri lanka , FDI has reached upto US$ 1,391 Mn in the year 2013. With the steady climb, the country's future development in all parts of the island looks promising. We are also currently exploring new areas and identifying strategically important locations to set up new export processing zones.

5 We are also focusing more now on areas such as IT, Research and Development which have shown much potential. After the completion of the Commonwealth Heads of Government Meeting (CHOGM) held in November 2013 in Colombo which attracted world leaders and investors from around the globe to the Business Forum, the preceding results have been overwhelming. BOI played a major role during this summit and we were the main organizers for the Commonwealth Business Forum (CBF). In fact the recent signing of the Memorandum of Understanding between the Seychelles Investment Board and the Board of Investment of Sri lanka was an outcome of the CBF.

6 Many investors still inquire and make attempts to realize some of the projects which we offered during the Forum. Needless to say, CBF certainly raised the profile of the BOI who plays a vital role in attracting foreign direct investment to the country. BOI has also participated in many other promotional activities and some foreign missions such as Israel and Japan. With raising awareness on what our country has to offer and the result-oriented government policies we have been seeing more top investors coming in. In comparison to countries such as Myanmar which is also now a head-turner, Sri lanka is not just about its strategic location and untapped resources but we also have the government policies in place to ensure the easy setting-up of a project.

7 With the guidance of the President and my Ministers & assistance of my staff, I have been able to steer the BOI in the right direction. I only hope to leave a clear path that the organization may follow in the future in order to take unstoppable Sri lanka to greater heights. Dr Lakshman Jayaweera Chairman Board of Investment of Sri lanka 4. BOI Profile The Board of Investment of Sri lanka (BOI) was incorporated as a statutory body in 1978 named Greater Colombo Economic Commission (GCEC), to function as the government's principal agency for promotion, coordination and facilitation of industrial development in designated areas of Sri lanka .

8 The initial model of development was to demarcate specific areas as Export Promotion Zones for which concessions and other facilities were provided. These Zones were initially established in Katunayake and Biyagama. Later more Zones were added progressively, now resulting in a total of 14 Zones. The GCEC was changed to BOI in 1992 by an act passed in Parliament expanding its scope to cover the entirety of the country. Prior to that, its authority was confined to the specific areas demarcated in Export Processing Zones hitherto established in Katunayake, Biyagama and Koggala. BOI has since evolved from an agency primarily responsible for the promotion, coordination and facilitation of foreign and local investment in the area of industrial exports, to its present role which includes the promotion, coordination and facilitation of investments into the services and infrastructure sectors as well.

9 Objectives The key objectives of the BOI focuses on fostering and generating economic development, widening and strengthening the base of the economy, encouraging and promoting local investments and Foreign Direct Investments, diversifying the sources of foreign exchange earnings and increasing export earnings, promoting innovation and adoption of new technologies and the generation of new employment opportunities and establishing Investment Promotion Zones (IPZs) throughout the country especially through public private partnerships. Role To target and attract investments to thrust sectors supporting implementation of the government's investment policy and to progressively increase the level of FDI thereby contributing towards achieving national growth targets.

10 The BOI acts as the first point of contact for investors who intend to set up projects in manufacturing, infrastructure, tourism, agriculture, IT related services or other chosen sector in Sri lanka . Information and guidance is provided prior to submission of the project application and when required approvals from other Agencies are coordinated by the BOI. Investment applications in respective sectors are evaluated by the BOI for approving and granting concessions on incentives, duty exemptions on raw materials and components and making recommendations to Immigration authorities for issuing visas for expatriate posts. The BOI provides assistance to investors throughout the project cycle from the start-up to implementation and successful operation by facilitating and attending to import/export clearance, custom clearance for import of capital goods and raw material and the export of final products.