BOI signs agreement with Chinese conglomerate:

Chinese Economic Zone to be set up at Mirigama

Charumini de Silva

The Board of Investment of Sri Lanka (BOI) signed an agreement yesterday with Chinese conglomerate Huichen Investment (Holdings) (Pvt) Ltd., to set up and manage a dedicated Chinese Special Economic Zone (SEZ) at Mirigama.

“The Chinese company will invest US$ 28 million under phase I and further investments will be made in the next phases”, said Minister of Enterprise Development and Investment Promotion, Anura Priyadharshana Yapa.

Minister of Enterprise Development and Investment Promotion, Anura Priyadharshana Yapa and President, Huichen Investment (Holdings) (Pvt) Ltd., Wang Yu Ping exchange the agreements of the dedicated Chinese Special Economic Zone (SEZ) at Mirigama. Pic by Sumanachandra Ariyawansa

Huichen Investment (Holdings) (Pvt) Ltd., which will establish, develop and market the new SEZ is also engaged in infrastructure development including construction.

The company’s interests extend to a wide range of economic sectors and activities such as machinery and equipment, electric motor-cycles, light vehicle assembly, manufacturing buses, ambulances and agricultural machinery.

Twenty-nine Chinese companies have been already identified and they will commence their enterprises in the SEZ at Mirigama and theses industries would generate avenues of direct employment for 200 people.

The prime advantage of the zone is its location - 40 kilometres from the Katunayake International Airport and 55 kilometres from the Colombo Port.

With the vast network of activities and contacts in the Chinese industry, Huichen Investment (Holdings) (Pvt) Ltd., will market the Mirigama SEZ very effectively.

The newly developed SEZ will have standard buildings, which will enable investors to invest on factories.

Internal roads, water and power capacity will be enhanced in addition to sewerage and other facilities.

The minister said, “Many inquiries from other countries were coming in after peace was restore and there is a great potential from the Sri Lankan diaspora to invest, especially in building industry, housing and even in tourism.

The BOI welcomes foreign investments that could start industries generating employment and foreign exchange”.

Another advantage is that the zone is near suburban towns such as Mirigama, Negombo, Divulapitya and Veyangoda where there are many educated young people.

As a result the Mirigama Industrial park is ideal for projects in information technology and business process outsourcing where young and skilled workers are needed.

There are 12 BOI zones and this number would be increased to 12 by the end of 2016. Emphasis will be made on setting up SEZs especially in Kilinochchi, Batticaloa, Ampara and Trincomalee with the dawn of peace and a new office for the BOI will be opened in Jaffna next week.

Notable construction at the SEZ will include an administrative building, supermarkets, banks and office areas. The Chinese investors are also looking at developing facilities such as hotels and restaurants. Houses for workers will be provided within the industrial block.

The BOI SEZ at Mirigama has a 33 KW power supply from the Ceylon Electricity Board (CEB). The zone is well equipped including drinking water in keeping with WHO standards.

Good road links to the zone can accommodate heavy vehicles and it has a wastewater treatment plant to cope with sewerage needs.