Investor confidence has increased - Minister Bogollagama

Hiran H. Senewiratne

INVESTMENT: The government’s target of achieving US $ 1 billion worth of foreign investment for the country this year is possible with the increase of investor confidence, Minister of Enterprise Development and Investment Promotions Rohitha Bogollagama said.

The foreign as well as local investors are now confident of Sri Lanka to invest here due to President Mahinda Rajapaksa’s liberal advocacy adopted to develop the economy under the Mahinda Chinthanaya, Minister Bogollagama said.

He made these remarks at a ceremony held to sign an agreement with BOI by Ceylon Glass Company Ltd (CGC) to invest approximately US$ 20 million for a new plant in order to double its production capacity to 200 MT for a day.

He said this is the second occasion we mobilized investment for mega projects in Sri Lanka under the “Nipaym Sri Lanka” which is the first project to be obtained incentives. They will allocate more than 1200 acres of land in Horana for the industrial zone, he said.

Director General/Chairman BOI Prof. Luxman Watawala said that CGC is Colombo Stock Exchange listed company, which is one of the major relocation with the use of incentives from the “Nepaym Sri Lanka” programme.

He said that large companies are in the process of obtaining incentives under the “Nipaym Sri Lanka,” which obtains five-year tax holiday, which could make use of its benefits under the Indo-Sri Lanka Free Trade Agreement.

CGC under ownership and management of Gujarat Glass Pvt Limited (GGL), India in which the latter has a 54 per cent equity stake, signed the Agreement with the BOI.

The construction is scheduled to commence next month and the new plant would be ready approximately 12 months period. Chairman and Managing Director GGL Vijay Shah said.

He said this industry being a power incentive business will generate alternative power methods to manufacture high-end glassware products including boutique wine bottles. They will mainly focus on local market and hope to export 20 per cent of them.

He said that the appreciation, faith and trust shown by existing customer along with the interest shown by prospective international customers, Ceylon Glass has decided to go ahead with the expansion by installing the new project. This expansion would not only almost double its capacity but CGC also plans to bring and add new technology to the art of glass container manufacturing, he said.

CEO, President/Exec Director CGC Sanjay Tiwari said that it would set up in a 26-acre land, which will generate 307 employment opportunities to the area.