Katunayake EPZ, a major impetus to Lanka’s economy

VISIT: The BOI recently organised a visit to the Katunayake Export Processing Zone (KEPZ) for members of the media. The visit included a presentation by senior BOI staff, members of the Free Trade Zone Manufacturers’ Association and some zone workers. Also included were visits to three BOI enterprises in the Zone.

The KEPZ is the first BOI Export Processing Zone, established in 1978, at the same time as the Greater Colombo Economic Commission (GCEC), as the Board of Investment of Sri Lanka was then known.

The KEPZ is a sprawling facility that has an area of 526.66 acres and it is located near the airport and just 29 kilometres from Colombo.

The KEPZ is the most highly developed of all BOI zones, as 86 enterprises are operating in the facility. Many of these enterprises can be described as high technology, using very advanced manufacturing techniques and procedures. Of these enterprises 24 are the plants of apparel exporters.

However other sectors are also represented such as precious stones and jewellery (5), trading houses (5), hosiery and yarn (4), glove production (4), electric and electronic (4), footwear(3), artificial flowers (3), bags and tents (1), rubber products (1) and many other sectors. The Katunayake Export Processing Zone companies are among the most modern sector of the Sri Lankan economy.

Export earnings from the zone totaled Rs. 97,186 million.

The Zone is a truly international facility. There are investment projects from 17 countries in the Zone. Currently there are 12 enterprises from Hong Kong, 12 American, 10 British, 10 Indian, 10 German, 7 Japanese, 6 Sri Lankan, 4 Belgian, 4 Italian, in addition to companies from Taiwan, Korea, Singapore, China, Luxembourg, France, Sweden and Norway.

In nearly three decades the zone has contributed significantly to creation of new job opportunities: In 1978 when the KEPZ was started there were only 261 employees working for the two first enterprises established in the Zone.

In 2007 the Zone employs a workforce of 50,475 locals and 197 expatriates and has brought many opportunities to a large section of the population.