Investing in Jaffna:

Indian investors show interest

Harshini PERERA

Many investors from India have shown their interest in investing in Jaffna as a result of the Jaffna Fair 2010 but it will take some time for them to plan and commence operations in Sri Lanka.

The investors have shown interest in investing in building materials, mechanical fabrication work and manufacturing sectors in Jaffna. Since the confidence level of doing business is fairly good in Jaffna, many opportunities for businesses will be opened in the future, Yal panam Chamber of Commerce and Industries Chairman, K Poornachandran told Daily News Business.

"Soon after the conclusion of the war, there was a huge demand for lands in Jaffna but the demand has slowed down at present.

There is a very good market for premises for commercial purposes and there is a difficulty in getting office space within Jaffna town," he said.

New businesses in Jaffna have to be housed in office spaces out of the Jaffna town.

Many lands and rental space is available outside Jaffna town. The rental for office premises is between Rs 50,000 and Rs 100,000 in the Jaffna town.

Five garment industries have decided to set up their branches in Jaffna in the near future.

They are in the process of acquiring lands in Jaffna and will start the operation after initial infrastructure is set up.

The presence of garment factories will lessen the unemployment rate prevailing in Jaffna. There are over 200,000 unemployed people in Jaffna awaiting to be absorbed to new companies emerging in Jaffna.

It is expected that 35,000 youth in Jaffna will be employed in these factories.

Many investors find the prices for building materials higher than the prices prevailing in other areas of Sri Lanka, he said.