Jaffna BOI projects top US $ 10 m

Indunil Hewage

With permanent peace and in the wake of investor friendly backdrop the Northern Province is turning out to be an investment paradise. Both small and high end entrepreneurs are investing in the fields of apparel, tourism, health, power sector, fishery and others.

Analysts in the area expect that this investment would top the US $ ten million mark.

Board of Investment (BOI) Jaffna Regional Office Deputy Director J.Jeyamanon said the BOI Regional Branch is committed to promoting the Northern area as a preferred area for industrial investments.

BOI is set to introduce a new incentives package for industrialists in the Northern Province shortly.

“Though there are immense opportunities for investors to start new businesses in the Northern area, there is a vacuum for investments projects.

In addition, foreign investor participation for the new investment projects is small and the BOI is taking every effort to bridge this gap by giving them a helping hand.

“At the moment several apparel companies have sought BOI approval to expand operations in the Northern Province.

Accordingly, MAS Active has already identified a suitable location in Aradiyanagar to build a garment factory while MAS Linea has also expressed their willingness to expand operations to the Kilinochchi area.

However, the company is still in the process of identifying a suitable area for this purpose.

Timex Garments and Ferguson will establish factories in Mannar and Omega Line Limited and Orit Apparels will locate the factories in the Vavuniya area,” Jeyamanon said.

Rebco Limited, a hardware manufacturing company has obtained the BOI approval to set up a subsidiary in Irrettaperiyakulam in Vavuniya while Tokyo Cement Company has already initiated a concrete yard and concrete mixture project in Elidumattuwal in Jaffna.

In addition, BOI has approved another private sector concrete block yard project in Urelu, Jaffna and its operation has already started.

Another project by AMP Ceylon Pvt Limited was given approval to commence a handicraft and ornamental manufacturing facility in Omanthai and the project is still under construction.

The construction work of on the 50 beds hospital project is underway by a private company with BOI approval.

Plans are also underway to start a fishing goods manufacturing project in the Omanthai area and this would be a joint venture project between India and Sri Lanka.

Several Sri Lankan expatriates have also obtained BOI approval to begin new hotels in the Jaffna area. Tilko hotel project with 42 rooms in Jaffna town is now operational and another three star hotel project with a total investment of US$ 3.5 million will commence in the Jaffna area shortly.