Annual Report of the Board of Investment of Sri Lanka for the Year 2019

Board of Investment of Sri Lanka ANNUAL REPORT 2019

ANNUAL REPORT 2019

Board of Investment of Sri Lanka

CONTENTS

Message from the Director General Board of Directors 2019 Vision & Mission BOI Profile, Objectives & Role Milestones Highlights - 2019 BOI at a Glance 01 Progress of Recent Initiatives 03 World Investment Scenario 2019 04 Investment Performance 2019 06 Departmental Performance 13 1. Investment Promotion Department 13 2. Investment Appraisal Department 17 3. Research & Policy Advocacy Department 20 4. Investor Services Department 22 5. Project Monitoring Department 23 6. Project Implementation Department 24 7. Legal Department 25 8. Technical Services Department 27 9. Zone Management Department 29 10. Environment Management Department 31 11. Engineering Approvals & Special Projects Department 33 12. Industrial Relations Department 35 13. Information Technology Department 37 14. Media & Publicity Department 39 15. Administration Department 41 16. Human Resources Management Department 42 17. Internal Audit Department 43 18. Security & Fire Department 44 19. Recoveries Unit 45 20. Finance Department 46 Financial Statements 2019 51 Report of the Auditor General 2019 83 The Reply of the BOI for the Report of the Auditor General 2019 103 Report of the Audit Committee 133 Senior Officers of the BOI as at 31.12.2019 135 Directory of BOI Offices 136 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Key functions of the department are; establishment of new Investment Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department Message from the Director General The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Key functions of the department are; establishment of new Investment Zones, providing technical The Board of Investment of Sri Lanka continues to be the apex body to attract FDI aligning with development goals set inputs for construction, operation, maintenance and determination of infrastructure facilities in out along with the government’s economic strategies. Being zones, advertising vacant lands on availability for selection of investors for new investment projects the central facilitator, BOI offers an excellent service with and assisting Competent Authority in transferring assets divested to the State. easy access and convenience for the Investors to operate smoothly. Services Rendered by the Department

The Technical Services Department is mainly responsible for; At a time when Sri Lanka is thriving as an open economy, BOI works with all positive leadership, policies and peace, • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, along with the help of developed infrastructure to face the managed by BOI. challenges of attracting high performing industries. Inorder enhance the effects of positive signals on the country’s • growth, BOI has taken necessary steps to increase domestic value added production to make Sri Lanka an active partner in the Global value chain. Achievements obtained by BOI in past few years were • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. journey of BOI in serving the country with all its good efforts. • Determination of infrastructure to be provided to the Zones. further strengthened by the performance of 2019. I am well contented to be a part of this affluent

• Investment plays a major role in the development paradigm of Sri Lanka and has made a colossal and handing over of operation of Zones to Zone Management Units. contribution to the economic development of the country throughout past few decades. Today, our Undertaking initial development work of new investment zones, establishment of zone offices aim is to ensure that FDI continues to contribute to the development of the country, in all three • Providing assistance and technical inputs for special investment projects with regard to land aspects; economic growth, social equity and environmental protection. matters and provision of infrastructure. BOI has made strides in creating investor-friendly conditions by implementing many policy reforms • that would encourage investments. Further, after 18 years, BOI added a new Export Processing establishment of an integrated solid waste management project/industrial park and recycle of Zone in Bingiriya focusing on regional development of the country. Through these efforts, BOI will Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. we advocate today are capable of changing the lives of millions for the better. • Providing technical support for infrastructure development work carried out by the existing definitely become a world-class investment promotion agency. I strongly believe that these changes Export Processing Zones/Industrial Parks as and when requested. In 2019, BOI Sri Lanka was recognized by UNCTAD for its excellence in promoting sustainable • Providing technical support for operation and maintenance of water supply, wastewater and investment in special economic zones and was awarded “United Nations Investment Promotion Awards 2019”. solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have BOI will re-emerge as an agency with strong competitive edge by effectively managing staff members based on competence and performance as well as enhancing their expertise in respective areas.

of the qualified BOI staff for being the excellent team they are.

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department Board of Directors 2019 The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Eng. Mangala P. B. Yapa Chairman managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• establishment of an integrated solid waste management project/industrial park and recycle of Dr. Nihal Samarappuli Dr. Harsha Subasinghe Mr. Duminda Hulangamuwa Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Board Member Board Member Board Member

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - Vision

“To make Sri Lanka the most preferred destination for sustainable investment in Asia” Vision

“To make Sri Lanka the most preferred destination for sustainable investment in Asia”

Mission

“BOI will work in a positive and speedy manner to fulfill Sri Lanka’s potential to attract and retain quality investment that leads to an enhanced export base, and brings more and better jobs, enhanced knowledge and skills through new technologies and innovations.” 8. Technical Services BOIDepartment Profile The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by The BoardBOI. of Investment of Sri Lanka (BOI) was incorporated as a constitutional body in 1978 named as the Greater Colombo Economic Commission (GCEC); with the directive to generate economic Key functions of the department are; establishment of new Investment Zones, providing technical BOI withinputs a mandate for construction, encompassing operation, the entire maintenance country, toand function determination as a central of infrastructurefacilitation point facilities for in investors,development offering in specifically convenience, demarcated easy access areas. and information. Later in 1992, the GCEC was reconstituted as the zones, advertising vacant lands on availability for selection of investors for new investment projects At present,and assisting the BOI Competent manages 14 Authority Export Processing in transferring Zones assets with divested the newly to theestablished State. Bingiriya EPZ in March 2019 and is proud to have assisted over 1,700 enterprises which have contributed to Sri Lanka’sServices economic Rendered development by the andDepartment growth. Today, the BOI is committed towards the continuous improvement of country’s investment climate. The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Objectivesmanaged by BOI.

The key• objectives of the BOI focus on; foster and generate economic development, widen and strengthen the base of the economy, encourage and promote Foreign Direct Investments, diversify the sources• PlanningIdentification of foreign and exchange developmentof sites for earnings new of newinvestment and investment increase zones/projects. exportzones. earnings, encourage and foster the establishment and development of industrial and enterprises within the Republic. • Determination of infrastructure to be provided to the Zones.

• Role and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • To target• Providing and attract assistance investments and technical to priority inputs forsectors special supporting investment implementation projects with regard of the to land Government’s investment policy and progressively increase the level of FDI, contributing towards matters and provision of infrastructure. achieving national growth targets. • • T establishment of an integrated solid waste management project/industrial park and recycle of added/Preparation high-tech manufacturing, of proposals, high identification value added of apparel, sites, obtaining IT enabled necessary services, tourism, approvals food for the processing,he BOIwater acts logistics, asand the wastewater first education point systemsof and contact large within forscale investors the infrastructure Zones. who intend or other to set chosen up projects sectors in in high Sri Lanka. value Information and guidance are provided and approvals required from other Line Agencies are • Providing technical support for infrastructure development work carried out by the existing coordinated by the BOI to facilitate the investors. Export Processing Zones/Industrial Parks as and when requested. • Investment applications in respective sectors are evaluated by the BOI to approve project • Providing technical support for operation and maintenance of water supply, wastewater and proposals, grant concessions and facilitate visa issuance for expatriates. solid waste management schemes of existing Export Processing Zones/Industrial Parks. • The BOI provides assistance to investors throughout the project cycle from start-up to • Inspection & making recommendations on technical aspects for the industrial parks which have implementation and successful operation of the project, by facilitating and attending to import/

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation • Texporthe BOI clearance develops for Export import Processing of capital goods Zones and with raw readily materials available and export infrastructure of final products. facilities to providethrough investors Land with Allocation suitable sites Committee for the implementation followed by the of approvals projects within of Screening a minimum Committee period and of time.Board of Directors of BOI.

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services BOIDepartment Profile Milestones The Technical Services Department is responsible for the overall control of Action Plan for Greater Colombo Economic Commission (GCEC) was established under the 1978 infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Parliament Act No. 04 of 1978. BOI. The Board of Investment of Sri Lanka (BOI) was incorporated as a constitutional body in 1978 named Establishment of the Katunayake Export Processing Zone in 1979, which is the as the Greater Colombo Economic Commission (GCEC); with the directive to generate economic 1979 Key functions of the department are; establishment of new Investment Zones, providing technical BOI with a mandate encompassing the entire country, to function as a central facilitation point for A Job Bank was set up by the GCEC to assist Zone Enterprises.Establishment of inputs for construction, operation, maintenance and determination of infrastructure facilities in 1986 first and largest zone to be maintained. investors,development offering in specifically convenience, demarcated easy access areas. and information. Later in 1992, the GCEC was reconstituted as the Biyagama Export Processing Zone in 1986 as the second zone of the BOI. zones, advertising vacant lands on availability for selection of investors for new investment projects Foreign Investment Advisory Committee & the GCEC were merged together and GCEC At present,and assisting the BOI Competent manages 14 Authority Export Processing in transferring Zones assets with divested the newly to theestablished State. Bingiriya EPZ 1990 became the sole authority to approve foreign investment in Sri Lanka. in March 2019 and is proud to have assisted over 1,700 enterprises which have contributed to Sri Lanka’sServices economic Rendered development by the andDepartment growth. Today, the BOI is committed towards the continuous Establishment of Koggala Export Processing Zone for the development of 1991 improvement of country’s investment climate. Southern Province. The Technical Services Department is mainly responsible for; The Board of Investment of Sri Lanka (BOI) was incorporated as a statutory body • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, 1992 under the Act No: 49 of 1992 and BOI is the successor to Greater Colombo Economic Objectivesmanaged by BOI. Commission (GCEC). “200 Garment Factory Program” was introduced to minimize the unemployment The key• objectives of the BOI focus on; foster and generate economic development, widen and under the Government Regional Development Programme. strengthen the base of the economy, encourage and promote Foreign Direct Investments, diversify the sources• PlanningIdentification of foreign and exchange developmentof sites for earnings new of newinvestment and investment increase zones/projects. exportzones. earnings, encourage and foster the 1995 Establishment of the Kandy Industrial Park. establishment and development of industrial and enterprises within the Republic. Amalgamated the Board of Investment with Bureau of Infrastructure Investment • Determination of infrastructure to be provided to the Zones. 1998 (BII). • Establishment of the Meerigama EPZ and the Malwatta EPP. Role and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices 1999 Establishment of the Horana EPZ and the Wathupitiwala EPZ. • To target and attract investments to priority sectors supporting implementation of the • Providing assistance and technical inputs for special investment projects with regard to land Establishment of the Polgahawela EPZ, the Mawathagama EPZ and the Government’s investment policy and progressively increase the level of FDI, contributing towards 2000 matters and provision of infrastructure. Mirijjawila EPZ. achieving national growth targets. Acquired the Seethawaka Industrial Park to the Board of Investment of SriLanka as • 2001 • T the Seethawaka EPZ. establishment of an integrated solid waste management project/industrial park and recycle of added/Preparation high-tech manufacturing, of proposals, high identification value added of apparel, sites, obtaining IT enabled necessary services, tourism, approvals food for the “300 Enterprises Program” was launched with the objective of taking industry to he BOIwater acts asand the wastewater first point systemsof contact within for investors the Zones. who intend to set up projects in high value 2006 processing, logistics, education and large scale infrastructure or other chosen sectors in Sri Lanka. the rural sector. Information and guidance are provided and approvals required from other Line Agencies are • Providing technical support for infrastructure development work carried out by the existing coordinated by the BOI to facilitate the investors. 2008 Export Processing Zones/Industrial Parks as and when requested. BOI Head Office was permanently established in the World Trade • Investment applications in respective sectors are evaluated by the BOI to approve project • Providing technical support for operation and maintenance of water supply, wastewater and Centre by purchasing nine floors of the WTC. proposals, grant concessions and facilitate visa issuance for expatriates. 2009 solid waste management schemes of existing Export Processing Zones/Industrial Parks. BOI became the first Government Institution to receive ISO 9001 : 2000 • The BOI provides assistance to investors throughout the project cycle from start-up to Certificate. • Inspection & making recommendations on technical aspects for the industrial parks which have implementation and successful operation of the project, by facilitating and attending to import/ 2011 TheAchieved BOI Jaffna USD 1Office Bn. FDI was target. established. BOI is the main organizer for the “Commonwealth Business Forum” which was held in 2013 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation parallel with the “Commonwealth Heads of Government Meeting (CHOGM) 2013”. • Texporthe BOI clearance develops for Export import Processing of capital goods Zones and with raw readily materials available and export infrastructure of final products. facilities to providethrough investors Land with Allocation suitable sites Committee for the implementation followed by the of approvals projects within of Screening a minimum Committee period and 2014 of time.Board of Directors of BOI. th 2017 BOIThe sponsored40 anniversary the “Asia celebration Pacific Business of BOI. Forum 2014”. 2018 Achieved USD 2.37 Bn. worth of FDI 2019 Bingiriya EPZ : The new addition to BOI Export Processing Zones.

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department

BOI became the first Government Institution to receive ISO 9001: The Technical Services Department is responsible for the overall control of Action Plan for 2000 Certificate. infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Achieved The USD BOI 1 Jaffna Bn. FDI Office target. was established. BOI.

2011 BOI is the main organizer for the “Commonwealth Business Forum” Key functions of the department are; establishment of new Investment Zones, providing technical which was held in parallel with the “Commonwealth Heads of inputs for construction, operation, maintenance and determination of infrastructure facilities in Government Meeting (CHOGM) 2013”. zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State.

20172013 TheBOI sponsored40th anniversary the “Asia celebration Pacific Business of BOI. Forum 2014”. Services Rendered by the Department

2018 Achieved USD 2.37 Bn. worth of FDI. The Technical Services Department is mainly responsible for; • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, 2019 Bingiriya EPZ : The new addition to BOI Export Processing Zones. managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department

2011 BOI is the main organizer for the “Commonwealth Business Forum” Key functions of the department are; establishment of new Investment Zones, providing technical which was held in parallel with the “Commonwealth Heads of inputs for construction, operation, maintenance and determination of infrastructure facilities in Government Meeting (CHOGM) 2013”. zones, advertising vacant lands on availability for selection of investors for new investment projects Highlights 2019 and assisting Competent Authority in transferring assets divested to the State.

20172013 TheBOI sponsored40th anniversary the “Asia celebration Pacific Business of BOI. Forum 2014”. Services Rendered by the Department Over 2,150 companies in Commercial operation under BOI. 2018 Achieved USD 2.37 Bn. worth of FDI. The Technical Services Department is mainly responsible for; 548 (Section 16) - 1,642 (Section 17). • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, 2019 Bingiriya EPZ : The new addition to BOI Export Processing Zones. managed by BOI.

• Over USD 18.5Bn. cumulative FDI Contribution to economic development. • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• and handing over of operation of Zones to Zone Management Units. USD 1.19 Bn. FDI recorded in 2019. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Contribute to 68% of national exports and 86% of industrial establishment of an integrated solid waste management project/industrial park and recycle of exports. Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. Over 521,000 (Numbers) cumulative direct employment. • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have Administer 14 Export Processing Zones/Industrial Parks. Planning for three proposed New Zones. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• ProvidingBOI Sritechnical Lanka: support for Theinfrastructure Winner development of work United carried out by the existing NationsExport Processing Investment Zones/Industrial Parks Promotion as and when requested. Awards • Providing2019 technical for support “Excellence for operation and inmaintenance promoting of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspectionsustainable & making recommendations investment on technical aspects in special for the industrial parks which have economic zones”. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department BOI at a Glance

The Technical Services Department is responsible for the overall control of Action Plan for Foreign Direct Investment (2010 - 2019) – USD Mn. infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. Source: BOI

• Top 10 Investing Countries in Sri Lanka (2010 – 2019) – USD Mn.

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

Source: BOI • ProvidingBOI Sritechnical Lanka: support for Theinfrastructure Winner development of work United carried out by the existing Foreign Direct Investment by Sector (2010 - 2019) NationsExport Processing Investment Zones/Industrial Parks Promotion as and when requested. Awards • Providing2019 technical for support “Excellence for operation and inmaintenance promoting of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

Source: BOI

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 01 - Foreign8. DirectTechnical Investment Services as Department a Percentage of GDP (2010 - 2019) – (%)

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

Source: TheBOI & Technical Central Bank Services Department is mainly responsible for; • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Contribution to National Exports (2010 - 2019) – USD Mn. managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• establishment of an integrated solid waste management project/industrial park and recycle of Source: BOI & CentralPreparation Bank of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Contribution to the National Employment (2010 - 2019) (000’s) BOI Enterprises:• Providing 6% technical to the supportTotal Labourfor infrastructure Force development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Source: BOI & Central Bank

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 02 - - 27 - Foreign Direct Investment as a Percentage of GDP (2010 - 2019) – (%) 8. Technical Services Department Progress of Recent Initiatives The Technical Services Department is responsible for the overall control of Action Plan for Progress of Policy Initiatives Development of New Zones infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. Submission of proposals to the Ministry of Finance on necessary policy changes investment zones, the development activities to the existing incentive regime to attract withOut of three the lands sites identified namely asBingiriya, suitable forMilleniya, developing & Key functions of the department are; establishment of new Investment Zones, providing technical investments Wagawatta have already begun and they are inputs for construction, operation, maintenance and determination of infrastructure facilities in in different stages of development process in To regularize investment incentives for large-scale collaboration with other Line Agencies. zones, advertising vacant lands on availability for selection of investors for new investment projects companies proposed by budget proposals 2019, and assisting Competent Authority in transferring assets divested to the State. boi has submitted proposals to budget proposal Currently there are 12 EPZ/IPs operating under 2019, on introduction of exemptions granted on BOI, last of which was developed in the year 2002. Services Rendered by the Department NBT, PAL and CESS for project related items for the Therefore, the zones developed under this initiative investments over USD 50 Mn. will be new additions after 18 years. The Technical Services Department is mainly responsible for; Source: BOI & Central Bank Subsequently, NBT was abolished and exemptions The construction work of the Bingiriya Export • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, from CESS and PAL for project related items have Processing Zone (EPZ), commenced on 4 March Contribution to National Exports (2010 - 2019) – USD Mn. been granted for projects with investments over 2019, with a land extent of 164 acres earmarked to managed by BOI. USD 50 Mn. with effect from 03.10.2019 and which would facilitate 25 enterprises by opening • 06.12.2019 respectively. upbe 10,000developed direct under employment the first opportunities.phase of the project, • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. BOI pays special attention on environmental Submission of BOI comments on the Draft aspects when identifying lands and developing • Determination of infrastructure to be provided to the Zones. Hub Regulation No. 01 of 2019 new zones to accommodate investment projects Several necessary amendments to the Commercial especially with waste management requirements • Hub Regulation were submitted to the Ministry and ensure that all project activities within zones and handing over of operation of Zones to Zone Management Units. of Finance in order to facilitate both exiting hub are to be facilitated in accordance with the National Undertaking initial development work of new investment zones, establishment of zone offices companies and potential investors. Environmental Regulations. • Providing assistance and technical inputs for special investment projects with regard to land The new regulation, Commercial Hub Regulation matters and provision of infrastructure. of Sri Lanka No.1 of 2019 was been published on 05.12.2019 by incorporating comments submitted • by BOI. establishment of an integrated solid waste management project/industrial park and recycle of Source: BOI & CentralPreparation Bank of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Contribution to the National Employment (2010 - 2019) (000’s) BOI Improving investment infrastructure Enterprises:• Providing 6% technical to the supportTotal Labourfor infrastructure Force development work carried out by the existing augmentation of major infrastructure in the Export Processing Zones/Industrial Parks as and when requested. existing Export Processing Zones of the BOI With the passage of time and the increase of • Providing technical support for operation and maintenance of water supply, wastewater and activities within the Export Processing Zones over solid waste management schemes of existing Export Processing Zones/Industrial Parks. the years, it has become necessary that common infrastructure of the Export Processing Zones • Inspection & making recommendations on technical aspects for the industrial parks which have should essentially be augmented and wherever necessary, be rehabilitated to meet the present day demands. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Services Department has already augmented the through Land Allocation Committee followed by the approvals of Screening Committee and sewerage schemes of Katunayake and Biyagama Board of Directors of BOI. Export Processing Zones. Simultaneously there are improvements being undertaken for rehabilitation of water distribution network and sewer collection network at the Katunayake Export Processing Zone. Source: BOI & Central Bank

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 02 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 03 - 8. TechnicalWorld Services Investment Department Scenario 2019 The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by FDI Inflows BOI.

Key functions of the department are; establishment of new Investment Zones, providing technical Global FDI flows rose modestly in 2019, following the sizable decline registered in 2018. At USD 1.54 trillion,inputs inflows for were construction, 3% up. They operation, remained maintenance below the average and determination of the last 10 yearsof infrastructure and some 25 facilities% off in the peakzones, value advertising of 2015. Consideringvacant lands the on Globalavailability FDI inflows for selection in 2019, of investors52% was forreceived new investment by Developed projects Economies followed by Developing Economies (44.5%) and Transitional Economies (3.6 %). FDI Inflowsand assisting by Group Competent of Economies Authority 2019 in transferring assets divested to the State.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of(Source infrastructure : World Investment to be provided Report, 2020) to the Zones. • and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices The rise •in FDIProviding was mainly assistance the result and of highertechnical flows inputs to Developed for special Economies, investment and toprojects Transition with Economies. regard to land FDI flows to Developing Economies declined marginally, by 2 %, to USD 685 Bn. In 2019, FDI inflows into Asia declinedmatters by 5 %, and to provisionUSD 474 Bn. of infrastructure.though the region remained an important FDI destination, hosting more than 30% of global FDI flows. In 2019, South Asia amounted to 3.7% of Global FDI Inflow with FDI • Inflows amounting to USD 57 Bn. and this has shown a 9.96% increase compared to 2018 values. FDI Inflowsestablishment by Region (2018 of an vsintegrated 2019) solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 04 - - 27 - FDI Outflows 8. TechnicalWorld Services Investment Department Scenario 2019 The Technical Services Department is responsible for the overall control of Action Plan for In 2019, MNEs from Developed Economies invested USD 917 Bn. abroad which was a 72 % increase infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by FDI Inflows from the previous year. Outflows from Developing and Transition Economies declined. These trends BOI. resulted in a significant shift in the overall share of Developed Economies in world FDI outflows, from 54 % in 2018 to 70 % in 2019. Outflows from developing Asia fell by 19% as outflows from China Key functions of the department are; establishment of new Investment Zones, providing technical declined for the third consecutive year. Outflows from South Asia grew 6%, driven by investment Global FDI flows rose modestly in 2019, following the sizable decline registered in 2018. At USD 1.54 from India. Yet they remained small, representing only 1 % of global outflows. trillion,inputs inflows for were construction, 3% up. They operation, remained maintenance below the average and determination of the last 10 yearsof infrastructure and some 25 facilities% off in FDI Outflows by Region (2018 vs 2019) the peakzones, value advertising of 2015. Consideringvacant lands the on Globalavailability FDI inflows for selection in 2019, of investors52% was forreceived new investment by Developed projects Economies followed by Developing Economies (44.5%) and Transitional Economies (3.6 %). FDI Inflowsand assisting by Group Competent of Economies Authority 2019 in transferring assets divested to the State.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of(Source infrastructure : World Investment to be provided Report, 2020) to the Zones.

• (Source : World Investment Report, 2020) and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices The rise •in FDIProviding was mainly assistance the result and of highertechnical flows inputs to Developed for special Economies, investment and toprojects Transition with Economies. regard to land FDI flows to Developing Economies declined marginally, by 2 %, to USD 685 Bn. In 2019, FDI inflows into Asia declinedmatters by 5 %, and to provisionUSD 474 Bn. of infrastructure.though the region remained an important FDI destination, hosting more than 30% of global FDI flows. In 2019, South Asia amounted to 3.7% of Global FDI Inflow with FDI • Inflows amounting to USD 57 Bn. and this has shown a 9.96% increase compared to 2018 values. FDI Inflowsestablishment by Region (2018 of an vsintegrated 2019) solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 04 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 05 - 8. TechnicalInvestment Services Department Performance – 2019

1. ProgressThe Technical Made Services on Applications Department is Receivedresponsible infor 2019the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Application Received BOI. (70)

Key functions of the department are; establishment of new Investment Zones, providing technical Awaiting Approval inputs for construction, operation, maintenance and determination of infrastructure facilities in (13) Rejected Application (7) zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State. Approved Services Rendered by the Department (50)

The Technical Services Department is mainly responsible for;

• Overall Awaitingcontrol of Agreement Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Approval Withdrawn (6) managed by BOI.(18)

• Agreement Signed • PlanningIdentification and developmentof sites for new of newinvestment investment(26) zones/projects. zones.

• Determination of infrastructure to be provided to the Zones. Awaiting Agreement • (18) and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.Commenced Implementation • (15) establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones.

• ProvidingAwaiting technical Commercial support for infrastructure development work carried out by the existing Operation Export Processing Zones/Industrial Parks as andOperation when requested. Suspended (0) (13) • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have In Commercial Operation • Aencountereddvertising vacant environmental lands in Zones issues on and (2)availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Source : MIS BOI (21st May 2020) Board of Directors of BOI. In the year 2019, 70 applications for new projects were submitted to the Board. Out of those 70 applications, 50 applications were approved of which two projects have commenced commercial operation and 15 projects are under implementation. In addition, 90 applications for project expansions of existing projects have been received during the year 2019.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 06 - - 27 - 8. TechnicalInvestment Services Department Performance – 2019 2. Status-wise Project Details • Projects Approved & Agreements Signed in 2019 1. ProgressThe Technical Made Services on Applications Department is Receivedresponsible infor 2019the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by The total numbers of project approvals granted in 2019 was 144 with a total estimated investment of Application Received USD 29.4 Bn. (Rs. 4,729 Bn.) The estimated total number of employment opportunities of approved BOI. (70) projects in the year 2019 is over 31,800. Key functions of the department are; establishment of new Investment Zones, providing technical Awaiting Approval Investment & Employment Share of Approved Projects in 2019 – By Sector inputs for construction, operation, maintenance and determination of infrastructure facilities in (13) Rejected Application (7) zones, advertising vacant lands on availability for selection of investors for new investment projects Est. No. of Employment Sector Investment and assisting Competent Authority in transferring assets divested to the State. Projects (Numbers) Approved (Rs Mn.) Services Rendered by the Department (50) Services/Infrastructure 26 787,737.72 7,384 Housing & Property Development 4 6,224.66 121 The Technical Services Department is mainly responsible for; Hotels, Restaurant Services & Entertainment 5 7,941.40 466 Complexes • Overall Awaitingcontrol of Agreement Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Approval Withdrawn (6) 7 63,332.10 1040 managed by BOI.(18) 1 693,000.00* 1,358 Shopping & Office Complex • Container Services, Warehousing & Freight 1 315.70 55 Agreement Signed PetroleumForwarding Refinery • PlanningIdentification and developmentof sites for new of newinvestment investment(26) zones/projects. zones. Other 8 16,923.86 4,344 • Determination of infrastructure to be provided to the Zones. Manufacturing 27 59,286.21 7,071 Agriculture 5 5,708.21 658 Awaiting Agreement • (18) Expansions of Existing Projects 85 105,583.61 10,262 and handing over of operation of Zones to Zone Management Units. Total 143 958,315.75 25,375 Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land Source: BOI matters and provision of infrastructure.Commenced Implementation • (15) (*ExcludesOut of the total the approvedestimated investment investment in of the Sughi year Petroleum 2019, the RefineryServices/Infrastructure amounting to Rs. sector 3,771 accounts Bn.) for establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. the highest contribution (82%) followed by investments from expansions (11%) and Manufacturing sector (6%). • ProvidingAwaiting technical Commercial support for infrastructure development work carried out by the existing Operation Export Processing Zones/Industrial Parks as andOperation when requested. Suspended (0) Out of the total estimated employment of the approved projects in 2019, 29% was created from the (13) Services/InfrastructureThe total number of projects sectors which while signed 28% agreementswas from the with Manufacturing BOI in 2019 sector.accounted for 105, in which 46 were new projects and 59 were expansions of existing projects. The total estimated investment • Providing technical support for operation and maintenance of water supply, wastewater and of these projects amounted to USD 4,895 Mn. (Rs. 865,861.72 Mn.). These projects are expected to solid waste management schemes of existing Export Processing Zones/Industrial Parks. generate over 17,979 employment opportunities. • Inspection & making recommendations on technical aspects for the industrial parks which have • Projects Commenced Construction/Implementation in 2019 In Commercial Operation In the year 2019, 36 new projects and 40 expansion projects commenced implementation/ construction. • Aencountereddvertising vacant environmental lands in Zones issues on and (2)availability conflicts in and respect select of suitable public concerns. investors by an evaluation The total estimated investment of projects that commenced implementation was USD 912 Mn. (Rs. 146,158.85 Mn.). The expected employment generation was over 16,935 numbers. through Land Allocation Committee followed by the approvals of Screening Committee and Source : MIS BOI (21st May 2020) Board of Directors of BOI. In the year 2019, 70 applications for new projects were submitted to the Board. Out of those 70 applications, 50 applications were approved of which two projects have commenced commercial operation and 15 projects are under implementation. In addition, 90 applications for project expansions of existing projects have been received during the year 2019.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 06 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 07 - 8. Technical Services Department Table 2: Top 10 Projects (Based on Estimated Investment) Which Commenced Construction/ Implementation in 2019 The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. Est. Est. Business Project Name Employment Investment Sector Location Activity Key functions of the department(Numbers) are; establishment(Rs. Mn.) of new Investment Zones, providing technical inputs for construction,To Setup aoperation, maintenance and determination of infrastructure facilities in Braybrooke Residential Residentialzones, Towersadvertising vacant lands on 1,445availability for 15,125.88 selection of investorsInfrastructure for new investmentColombo 2 projects Apartment (Pvt) Ltd. and assisting CompetentComplex Authority in transferring assets divested to the State. To Setup Services Rendered by the Department Monarch Imperial a Mixed 895 11,374.86 Infrastructure Thalapathpitiya (Pvt) Ltd. Development The Technical Services Department is mainly responsible for; Project To Setup an Sandal •Colombo Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Apartment 306 6,637.58 Infrastructure Colombo 10 (Pvt) Ltd. managed byComplex BOI. Bellevue To Setup an • Residencies (Pvt) Apartment 458 3,902.60 Infrastructure Ja-Ela Ltd. Complex • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. To Setup Simakvin Real 220 3,759.53 Infrastructure Colombo 02 Estate (Pvt)• Determination Ltd. of infrastructure to be provided to the Zones. Complex an Office Ceylon •Frontier To Setup Properties (Pvt) 136 2,460.00 Infrastructure Colombo 03 and handing over of operation of Zones to Zone Management Units. Ltd. UndertakingComplex initial development work of new investment zones, establishment of zone offices Logipark Intl. (Pvt) an Office • Providing assistanceWarehouse and technical171 inputs for 2,443.00 special investmentServices projects withWattala regard to land Ltd. matters and provision of infrastructure. To Setup H N J Towers (Pvt) a Mixed • 34 2,297.57 Infrastructure Colombo 03 Ltd. Development establishmentProject of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewaterFruit Juice & systems within the Zones. Ceylon Beverage Carbonated 103 2,287.50 Manufacturing Horana Intl. (Pvt)• ProvidingLtd. technicalBeverages support In for infrastructure development work carried out by the existing Export ProcessingFilled Cans Zones/Industrial Parks as and when requested. Wild Beach Resorts 42 Roomed Tourism & 124 2,076.00 Yala (Pvt) Ltd.• Providing technicalHotel support for operation and maintenanceLeisure of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. • Projects Commenced Commercial Operation in 2019 • Inspection & making recommendations on technical aspects for the industrial parks which have During the year 2019, a total of 60 projects (36 new projects and 24 expansion projects) have commenced commercial operation. The total realized investment of new projects accounted for USD 267.28 Mn. (Rs. 47,784.52 Mn.), and approximately 2,341 employment opportunities were • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation created by these projects. through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 08 - - 27 - 8. Technical Services Department Sector Wise Distribution of Projects Commenced Commercial Operation in 2019 Table 2: Top 10 Projects (Based on Estimated Investment) Which Commenced Construction/ Implementation in 2019 The Technical Services Department is responsible for the overall control of Action Plan for Out of 60 projects that commenced commercial operation in 2019, 27 projects were in the Manufacturing Sector (including Apparel), followed by nine projects in the Infrastructure Sector, nine infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. Est. Est. Leisure Sector, three projects in the Agriculture Sector and three projects in the Knowledge Services Business Project Name Employment Investment Sector Location Sector.projects in the Utilities Sector, five projects in the Services Sector, four projects in the Tourism and Activity Key functions of the department(Numbers) are; establishment(Rs. Mn.) of new Investment Zones, providing technical inputs for construction,To Setup aoperation, maintenance and determination of infrastructure facilities in Braybrooke Residential Residentialzones, Towersadvertising vacant lands on 1,445availability for 15,125.88 selection of investorsInfrastructure for new investmentColombo 2 projects Apartment (Pvt) Ltd. and assisting CompetentComplex Authority in transferring assets divested to the State. To Setup Services Rendered by the Department Monarch Imperial a Mixed 895 11,374.86 Infrastructure Thalapathpitiya (Pvt) Ltd. Development The Technical Services Department is mainly responsible for; Project To Setup an Sandal •Colombo Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Apartment 306 6,637.58 Infrastructure Colombo 10 (Pvt) Ltd. managed byComplex BOI. Bellevue To Setup an • Residencies (Pvt) Apartment 458 3,902.60 Infrastructure Ja-Ela Ltd. Complex • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. To Setup Simakvin Real Source : BOI 220 3,759.53 Infrastructure Colombo 02 Estate (Pvt)• Determination Ltd. of infrastructure to be provided to the Zones. Complex an Office Ceylon •Frontier To Setup District Wise Distribution of Projects Commenced Commercial Operation in 2019 Properties (Pvt) 136 2,460.00 Infrastructure Colombo 03 and handing over of operation of Zones to Zone Management Units. Ltd. UndertakingComplex initial development work of new investment zones, establishment of zone offices Logipark Intl. (Pvt) an Office • Providing assistanceWarehouse and technical171 inputs for 2,443.00 special investmentServices projects withWattala regard to land and Gampaha districts. The rest were geographically distributed over the other 15 districts. Ltd. matters and provision of infrastructure. 53% of the projects that commenced commercial operation in 2019 were located within the Colombo To Setup H N J Towers (Pvt) a Mixed • 34 2,297.57 Infrastructure Colombo 03 Ltd. Development establishmentProject of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewaterFruit Juice & systems within the Zones. Ceylon Beverage Carbonated 103 2,287.50 Manufacturing Horana Intl. (Pvt)• ProvidingLtd. technicalBeverages support In for infrastructure development work carried out by the existing Export ProcessingFilled Cans Zones/Industrial Parks as and when requested. Wild Beach Resorts 42 Roomed Tourism & 124 2,076.00 Yala (Pvt) Ltd.• Providing technicalHotel support for operation and maintenanceLeisure of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. • Projects Commenced Commercial Operation in 2019 • Inspection & making recommendations on technical aspects for the industrial parks which have During the year 2019, a total of 60 projects (36 new projects and 24 expansion projects) have commenced commercial operation. The total realized investment of new projects accounted for USD 267.28 Mn. (Rs. 47,784.52 Mn.), and approximately 2,341 employment opportunities were Source : BOI • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation created by these projects. through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 08 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 09 - 3. 8.Foreign Technical Direct Services Investment Department Attracted in 2019 The FDI recorded in Sri Lanka in the year 2019 amounted to USD 743 Mn. excluding foreign loans, and USDThe 1,189 Technical Mn. including Services the Department foreign loan is component. responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Sector Wise FDI Received in 2019 BOI. Out of total FDI received in 2019, Housing & Property Development Sector has received the highest Key functions of the department are; establishment of new Investment Zones, providing technical FDI amountinginputs for to construction, USD 455 Mn. operation, (38%), followed maintenance by Manufacturing and determination Sector with of infrastructureUSD 319 Mn. (27%), facilities in Hotel zones,Sector advertising with USD 154 vacant Mn. lands (13%), on Telephoneavailability &for Telecommunication selection of investors Sector for newwith investment USD 138 Mn. projects (12%), Port Development Sector with USD 47 (4%), IT & BPO sector with USD 40 Mn. (3%) etc. and assisting Competent Authority in transferring assets divested to the State.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• andSource handing : BOI over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Major Sources• Providing of Foreign assistance Direct and Investment technical inputs – 2019 for special investment projects with regard to land China was mattersthe largest and source provision of FDI of ininfrastructure. 2019 with USD 293 Mn. This was followed by United Kingdom (USD 157 Mn.), India (USD 139 Mn.), Hong Kong (USD 137 Mn.), Singapore (USD 97 Mn.), Malaysia • (USD 54 Mn.) ,Netherlands (USD 43 Mn.), UAE (USD 41 Mn.), Australia (USD 33 Mn), Japan (USD32 establishment of an integrated solid waste management project/industrial park and recycle of Mn.), LuxembourgPreparation (USD of29 proposals,Mn.), France identification (USD 28 Mn.), of United sites, States obtaining (USD 26 necessary Mn.), Sweden approvals (USD23 for the water and wastewater systems within the Zones. received in the year 2019. Mn.), Italy• Providing(USD 13 Mn.)technical etc. Thesesupport fifteen for infrastructure countries together, development accounted work for carried96% of outthe bytotal the FDI existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Source : BOI

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 10 - - 27 - 3. 8.Foreign Technical Direct Services Investment Department Attracted in 2019 4. Realized Investment (Cumulative) The FDI recorded in Sri Lanka in the year 2019 amounted to USD 743 Mn. excluding foreign loans, and USDThe 1,189 Technical Mn. including Services the Department foreign loan is component. responsible for the overall control of Action Plan for The realized cumulative total investment as infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by at end of the year 2019 was Rs. 3,752 Bn., Sector Wise FDI Received in 2019 BOI. Out of total FDI received in 2019, Housing & Property Development Sector has received the highest the previous year. Out of Rs. 3,752 Bn. total which showed a 13% increase compared to Key functions of the department are; establishment of new Investment Zones, providing technical represented the foreign component and the FDI amountinginputs for to construction, USD 455 Mn. operation, (38%), followed maintenance by Manufacturing and determination Sector with of infrastructureUSD 319 Mn. (27%), facilities in realized investment, 61% (Rs. 2,282 Bn.) Hotel zones,Sector advertising with USD 154 vacant Mn. lands (13%), on Telephoneavailability &for Telecommunication selection of investors Sector for newwith investment USD 138 Mn. projects the domestic private investments. (12%), Port Development Sector with USD 47 (4%), IT & BPO sector with USD 40 Mn. (3%) etc. balance 39% (Rs. 1,470 Bn.) represented and assisting Competent Authority in transferring assets divested to the State. The Infrastructure & Services sector

Services Rendered by the Department cumulative investment and the balance accounted for 75% of the total realized The Technical Services Department is mainly responsible for; including Apparel. 25 % was from the Manufacturing sector • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

• Source : BOI

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones. 5. Employment (Cumulative) • andSource handing : BOI over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Major Sources• Providing of Foreign assistance Direct and Investment technical inputs – 2019 for special investment projects with regard to land China was mattersthe largest and source provision of FDI of ininfrastructure. 2019 with USD 293 Mn. This was followed by United Kingdom (USD 157 Mn.), India (USD 139 Mn.), Hong Kong (USD 137 Mn.), Singapore (USD 97 Mn.), Malaysia • (USD 54 Mn.) ,Netherlands (USD 43 Mn.), UAE (USD 41 Mn.), Australia (USD 33 Mn), Japan (USD32 establishment of an integrated solid waste management project/industrial park and recycle of Mn.), LuxembourgPreparation (USD of29 proposals,Mn.), France identification (USD 28 Mn.), of United sites, States obtaining (USD 26 necessary Mn.), Sweden approvals (USD23 for the water and wastewater systems within the Zones. received in the year 2019. Mn.), Italy• Providing(USD 13 Mn.)technical etc. Thesesupport fifteen for infrastructure countries together, development accounted work for carried96% of outthe bytotal the FDI existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have Source : BOI

The cumulative employment of BOI projects as at December 2019 was recorded as 521,438. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and 60% of the total cumulative employment of BOI projects was from the Textile, Apparel & Leather Board of Directors of BOI. sector and 19% was from other Manufacturing sectors. Services & Infrastructure sector including Agriculture represented 21% of the total cumulative employment in 2019.

Source : BOI

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 10 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 11 - 6. 8.Export Technical Performance Services Department The total exports of BOI enterprises in 2019 were amounted to USD 8,811 Mn. which represented The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by 68% of national exports and 86% of national industrial exports. BOI.

USD Key functions of the department are; establishment of new Investment Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

Source : BOI •

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. Source : BOI • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

During the• Inyearspection of 2019, & makingApparel recommendations sector represented on the technical highest percentageaspects for ofthe exports industrial (64%) parks followed which have by the Manufacturing sector (excluding apparel) amounting to 28%. The Services and Agriculture sectors represented 8% of the total BOI exports. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 12 - - 27 - 6. 8.Export Technical Performance Services Department Departmental Performance The total exports of BOI enterprises in 2019 were amounted to USD 8,811 Mn. which represented The Technical Services Department is responsible for the overall control of Action Plan for 1. Investment Promotion Department infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by 68% of national exports and 86% of national industrial exports. BOI. The Investment Promotion Department is primarily tasked with attracting Foreign Direct Investment

USD Department also liaises with existing investors to keep abreast of their progress and to facilitate Key functions of the department are; establishment of new Investment Zones, providing technical expansions(FDI) with emphasis in terms ofon additional focus sectors investments. identified by the BOI Corporate Plan. The Investment Promotion inputs for construction, operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects Services rendered by the Department and assisting Competent Authority in transferring assets divested to the State. • Organizing Overseas Investment Promotion Missions to Target Markets:

Services Rendered by the Department These missions can be Roadshows undertaken in collaboration with other State Agencies, or targeted missions with a focus on one-to-one engagement with selected prospective investors, The Technical Services Department is mainly responsible for; complemented by one or more headline events such as a forum or seminar based on investing in Sri Lanka. • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

Source : BOI Counterpart Organizations, Industry Collectives, and meetings with existing investor companies • toA provide mission updates would typicallyon the business include and sector investment specific climate discussions in Sri Lanka with Chamberswith the overall of Commerce, objective of creating/enhancing awareness on investment opportunities in Sri Lanka. • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones. • Participat

• Representinging atthe events BOI focusingat International on identified Forums, thrust Conferences sectors: and Exhibitions with the overall objective of creating/enhancing awareness on investment opportunities in Sri Lanka. Such and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices participation is usually in collaboration with other state agencies and industry/sector bodies that • Providing assistance and technical inputs for special investment projects with regard to land represent the sector in focus. matters and provision of infrastructure. • Facilita investment potential and enable in-depth insights on the local investment climate. Assistance and • ting Inward Investor Delegations to Sri Lanka, to provide first-hand experience of Sri Lanka’s establishment of an integrated solid waste management project/industrial park and recycle of excursions. Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. facilitation includes visa recommendations, convening stakeholder meetings, site visits and other field • Organizing Inward Business Delegations to visit Sri Lanka, in order to study the existing business • Providing technical support for infrastructure development work carried out by the existing and investment climate. Such visits are usually organized with the support of Sri Lankan missions Export Processing Zones/Industrial Parks as and when requested. overseas and Trade/Business Chambers in the visiting country. Assistance and facilitation Source : BOI • Providing technical support for operation and maintenance of water supply, wastewater and excursions. includes visa recommendations, convening stakeholder meetings, site visits and other field solid waste management schemes of existing Export Processing Zones/Industrial Parks. • Co-ordination of Investor Facilitation Forums with existing investors to discuss and resolve issues During the• Inyearspection of 2019, & makingApparel recommendations sector represented on the technical highest percentageaspects for ofthe exports industrial (64%) parks followed which have related to ongoing business and future business plans. Multiple GoSL stakeholders are represented by the Manufacturing sector (excluding apparel) amounting to 28%. The Services and Agriculture at these meetings that are usually presided over by Chairman BOI, with Hon. Minister in attendance. sectors represented 8% of the total BOI exports. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation General Promotion Activities through Land Allocation Committee followed by the approvals of Screening Committee and These activities are focused on creating awareness on investment opportunities available in Sri Lanka, Board of Directors of BOI. Lankan Missions overseas as well as partner organizations, Chambers and other Industry Collectives in identified countries through sector/country desk officers. Internal Departments of the BOI, Sri

thesupport BOI Researchthe Promotions Department. Department in such activities. The identification of target sectors to attract FDI from the foreign markets and identification of target companies in such markets is supported by

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 12 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 13 - These8. general Technical activities include Services building Department relationships and networks with respective Chambers of Commerce, Business Councils, Banks, and other relevant organizations for investment promotion, coordination with Foreign Missions in Sri Lanka and Sri Lanka Overseas Missions, liaison with Industry Associations,The Technical State LineServices Agencies Department / Authorities is responsible such as SLTDA, for the EDB overall and thecontrol Gems of &Action Jewellery Plan for Authority.infrastructure Such initiatives development also include pertaining coordination to Export with Processing respective Zones groups and of Industrial Sri Lankans Parks living managed and by workingBOI. overseas/in the country of interest as well as networking with existing BOI companies to encourage re-investment. Key functions of the department are; establishment of new Investment Zones, providing technical Investment Forums / Seminars and Exhibitions in Sri Lanka inputs for construction, operation, maintenance and determination of infrastructure facilities in Organizingzones, and advertising participating vacant at lands local on investment availability forums for selection for both of foreigninvestors and for local new participantsinvestment projectsin collaborationand assisting with Competentrelevant Chambers Authority and in transferring Counterpart assets Organizations. divested to This the includesState. participating and supporting at Trade Exhibitions to disseminate information on related investment opportunities. Services Rendered by the Department Local Conferences The Technical Services Department is mainly responsible for; Representations at local conferences with active participation and networking with foreign participants• Overall to create control awareness of Action on the Plan investment for infrastructure climate and developmentinvestment opportunities pertaining toin SriEPZs, Lanka. IPs, etc, managed by BOI. Progress of the year 2019 • Outward Missions • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. India: 12 - 13 January The Confederation• Determination of Indian of infrastructure Industry (CII) to in be partnership provided to with the theZones. Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India, and the State Government of Maharashtra,• organized the 25th The CII Partnershipand handing Summit. over of The operation BOI presented of Zones onto Zoneinvestment Management opportunities Units. in Sri Lanka during Undertaking initial development work of new investment zones, establishment of zone offices the session “Promoting regional economic Anniversary cooperation Edition in of South its annual Asia”, onflagship the invitation international of the event Indo Lanka Chamber• Providing of Commerce assistance & and Industry technical of the inputs Ceylon for Chamber special investmentof Commerce. projects with regard to land matters and provision of infrastructure. Korea: 19 - 22 February This mission• was organized in collaboration with the Ministry of Foreign Affairs, through its Economic establishmentDiplomacy Program. of an integrated The Korean solid Chamber waste managementof Commerce project/industrialand Industry (KCCI) park and and Korea recycle of Trade-InvestmentPreparation Promotion of proposals, Agency (KOTRA) identification were ofthe sites, supporting obtaining organizations. necessary The approvals headline for the water and wastewater systems within the Zones. event was an Investor Seminar held at KCCI Auditorium. China: •10 Providing - 14 June technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. The BOI participated at the 2nd China-South Asia Cooperation Forum in Kunming on the invitation of • Providing technical support for operation and maintenance of water supply, wastewater and in Sri Lanka and the Focus sectors for investment in Sri Lanka at the China-South Asia Business Forum,the Yunnan whichsolid Commercial was waste well management received Representative by schemesthe visiting Office of in existingdelegates Colombo. Export from The BOIotherProcessing made countries. presentations Zones/Industrial on investing Parks. Dubai: •7 –In 11spection July & making recommendations on technical aspects for the industrial parks which have The main purpose of this mission was the formalization of Sri Lanka’s participation at Expo2020 in Dubai. The Sri Lankan delegation also participated at a Business Forum hosted by the Sharjah Chamber• ofAencountereddvertising Commerce vacant andenvironmental Industry, lands in at Zones issuestheir Chamberon and availability conflicts premises in and respect which select of wassuitable public followed concerns. investors by a networking by an evaluation meeting withthrough the Sri Land Lanka Allocation Business Committee Council (SLBC), followed Sri Lanka by the Chartered approvals Accountants’ of Screening Association- Committee and UAE ChapterBoard (CA-SL), of Directors Sri Lanka of BOI. Professionals’ Association (SLPA) organized by the Sri Lankan Consul General in Dubai.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 14 - - 27 - These8. general Technical activities include Services building Department relationships and networks with respective Chambers of Commerce, Business Councils, Banks, and other relevant organizations for investment promotion, co- India: 8 – 9 August ordination with Foreign Missions in Sri Lanka and Sri Lanka Overseas Missions, liaison with Industry The Sri Lanka Business and Investment Forum was held at the GCCI, Ahmadabad, India to coincide Associations,The Technical State LineServices Agencies Department / Authorities is responsible such as SLTDA, for the EDB overall and thecontrol Gems of &Action Jewellery Plan for Authority.infrastructure Such initiatives development also include pertaining coordination to Export with Processing respective Zones groups and of Industrial Sri Lankans Parks living managed and by to Gujarat. The forum was organized by the GCCI, Gujarat Chamber of Commerce & Industry in close workingBOI. overseas/in the country of interest as well as networking with existing BOI companies to collaborationwith the official with visit Sri of Lanka Hon. MinisterHigh Commission of Development in New StrategiesDelhi and theand Sri International Lanka Consulate Trade in (MODSIT) Mumbai. encourage re-investment. Singapore: 21 – 23 August Key functions of the department are; establishment of new Investment Zones, providing technical Investment Forums / Seminars and Exhibitions in Sri Lanka This mission was undertaken in partnership with the Sri Lanka-Singapore Business Council of the inputs for construction, operation, maintenance and determination of infrastructure facilities in Ceylon Chamber of Commerce and supported by the Sri Lankan High Commission in Singapore. Organizingzones, and advertising participating vacant at lands local on investment availability forums for selection for both of foreigninvestors and for local new participantsinvestment projectsin Mission highlights included an Investor Forum at the Singapore Business Federation (SBF) and collaborationand assisting with Competentrelevant Chambers Authority and in transferring Counterpart assets Organizations. divested to This the includesState. participating a Seminar followed by a networking session at the Singapore-Indian Chamber of Commerce and and supporting at Trade Exhibitions to disseminate information on related investment opportunities. Industry (SICCI) as well as a meeting with the Singapore-Chinese Chamber of Commerce and Services Rendered by the Department Industry (SCCCI). Local Conferences China: 26 – 30 August The Technical Services Department is mainly responsible for; Representations at local conferences with active participation and networking with foreign This mission was in collaboration with Citi Bank Sri Lanka, targeting their corporate clientele in participants• Overall to create control awareness of Action on the Plan investment for infrastructure climate and developmentinvestment opportunities pertaining toin SriEPZs, Lanka. IPs, etc, Beijing with the intent of creating awareness on investment opportunities in Sri Lanka. The headline managed by BOI. event was a Forum supported by the Chinese Chamber of Commerce for the Import and Export Progress of the year 2019 of Machinery & Electronics (CCCME) which was followed by one-to-one meetings with potential • investors from the auto parts, electric & electronic equipment sectors. Outward Missions • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Thailand: 2 – 6 September India: 12 - 13 January The Embassy of Sri Lanka in Bangkok, Thailand initiated an Investment Promotion Programme to The Confederation• Determination of Indian of infrastructure Industry (CII) to in be partnership provided to with the theZones. Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India, and the State Government closely with the Sri Lanka Embassy to arrange several one-to-one meetings with target companies • of Maharashtra, organized the 25th andtarget industrial pre- identified collectives. investment sectors in close collaboration with the BOI. BOI officers worked The CII Partnershipand handing Summit. over of The operation BOI presented of Zones onto Zoneinvestment Management opportunities Units. in Sri Lanka during Undertaking initial development work of new investment zones, establishment of zone offices the session “Promoting regional economic Anniversary cooperation Edition in of South its annual Asia”, onflagship the invitation international of the event Indo Japan 9 – 13 September Lanka Chamber• Providing of Commerce assistance & and Industry technical of the inputs Ceylon for Chamber special investmentof Commerce. projects with regard to land Initiated by the Ministry of Development Strategies & International Trade, the Investment Promotion matters and provision of infrastructure. Department of the BOI organized an Investment promotion mission to Japan to continue engagement Korea: 19 - 22 February with the business community in Japan while following up on leads generated during previous visits This mission• was organized in collaboration with the Ministry of Foreign Affairs, through its to Japan. The mission highlight was an investment seminar hosted by JETRO, in Tokyo. Economic establishmentDiplomacy Program. of an integrated The Korean solid Chamber waste managementof Commerce project/industrialand Industry (KCCI) park and and Korea recycle of Trade-InvestmentPreparation Promotion of proposals, Agency (KOTRA) identification were ofthe sites, supporting obtaining organizations. necessary The approvals headline for the United Kingdom: October 9 – 10 water and wastewater systems within the Zones. event was an Investor Seminar held at KCCI Auditorium. Supported by the Sri Lankan High Commission in London, the BOI organized a Sri Lanka Investment Forum at the London Stock Exchange (LSE) as the headline event of this mission. The BOI worked China: •10 Providing - 14 June technical support for infrastructure development work carried out by the existing closely with Sri Lanka High Commission in UK, London Stock Exchange (LSE), British High Export Processing Zones/Industrial Parks as and when requested. The BOI participated at the 2nd China-South Asia Cooperation Forum in Kunming on the invitation of Commission in Colombo and Council for Business with Britain to coordinate this event which was • Providing technical support for operation and maintenance of water supply, wastewater and followed by one to one meetings and a networking session, as well as a round table discussion on in Sri Lanka and the Focus sectors for investment in Sri Lanka at the China-South Asia Business the IT sector at the Manchester Chamber of Commerce the next day. Forum,the Yunnan whichsolid Commercial was waste well management received Representative by schemesthe visiting Office of in existingdelegates Colombo. Export from The BOIotherProcessing made countries. presentations Zones/Industrial on investing Parks. Dubai: •7 –In 11spection July & making recommendations on technical aspects for the industrial parks which have Inward Missions The main purpose of this mission was the formalization of Sri Lanka’s participation at Expo2020 China in Dubai. The Sri Lankan delegation also participated at a Business Forum hosted by the Sharjah • Delegation from Association for International Economic Cooperation – February Chamber• ofAencountereddvertising Commerce vacant andenvironmental Industry, lands in at Zones issuestheir Chamberon and availability conflicts premises in and respect which select of wassuitable public followed concerns. investors by a networking by an evaluation meeting withthrough the Sri Land Lanka Allocation Business Committee Council (SLBC), followed Sri Lanka by the Chartered approvals Accountants’ of Screening Association- Committee and • Delegation from China Council for the Promotion of International Trade Shanghai Provincial UAE ChapterBoard (CA-SL), of Directors Sri Lanka of BOI. Professionals’ Association (SLPA) organized by the Sri Lankan Committee – May Consul General in Dubai. • Delegation from China Council for the Promotion of International Trade Jilin Provincial Committee – August • Delegation from Chengdu Association of Foreign Trade and Economic Cooperation (CAFTEC) - September

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 14 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 15 - • Delegation8. Technical from China Services Council for Department the Promotion of International Trade Xiamen Provincial Committee - September The Technical Services Department is responsible for the overall control of Action Plan for Korea infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by • Delegation from Korea Agricultural Machinery Industry Cooperative (KAMICO) - May BOI. Japan • DKeyelegation functions from of Sojitz the department- February are; establishment of new Investment Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in UK zones, advertising vacant lands on availability for selection of investors for new investment projects • Delegation from Trade and Innovation Department of International Trade (DIT) South Asia from UKand - assistingJuly Competent Authority in transferring assets divested to the State. EU Services Rendered by the Department • Delegation from The European Union GSP + Monitoring Mission - August The Technical Services Department is mainly responsible for; India • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, • Delegation from the Southern Gujarat Chamber of Commerce & Industry - September managed by BOI.

Local events• organized by the Investment Promotion Department

1. Japan• /PlanningIdentification Sri Lanka and Government developmentof sites for newPrivate of newinvestment Joint investment Forum, zones/projects. zones. October 2019

For existing• Determination investors asof wellinfrastructure as non-BOI to companiesbe provided to to present the Zones. issues faced by their businesses and industries for intervention and resolution through facilitation by BOI. • 2. EU - Sriand Lanka handing Investor over Dialogue of operation – March, of Zones October to Zone 2019 Management Units. Undertaking initial development work of new investment zones, establishment of zone offices For EU origin companies to present issues faced by their businesses and industries for intervention and resolution• Providing through assistance facilitation and technical by BOI. inputs for special investment projects with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 16 - - 27 - • Delegation8. Technical from China Services Council for Department the Promotion of International Trade Xiamen Provincial 2. Investment Appraisal Department Committee - September The Technical Services Department is responsible for the overall control of Action Plan for Having recognized the necessity of achieving economic development goals of the country rapidly, and Korea infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by identifying the importance of the BOI to achieve the said goals, the Investment Appraisal Department • Delegation from Korea Agricultural Machinery Industry Cooperative (KAMICO) - May BOI. has been entrusted with the responsibility of promoting, attracting and facilitating foreign direct Japan investment (FDI), for the purpose of enhancing foreign exchange earnings through value added • DKeyelegation functions from of Sojitz the department- February are; establishment of new Investment Zones, providing technical exports, generating employment and providing opportunities to upgrade the technological skills, inputs for construction, operation, maintenance and determination of infrastructure facilities in UK transfer of technologies by facilitating investment within a minimum time frame. zones, advertising vacant lands on availability for selection of investors for new investment projects • Delegation from Trade and Innovation Department of International Trade (DIT) South Asia from The facilitation process plays a major role to uplift the Doing Business Ranking of the country and UKand - assistingJuly Competent Authority in transferring assets divested to the State. EU Services Rendered by the Department Ascreate per investorthe prevailing confidence policy for of thefurther Government expansion and of meetingbusinesses. with rapidly changing competitive global • Delegation from The European Union GSP + Monitoring Mission - August The Technical Services Department is mainly responsible for; environment, the Department is structured identifying different priority sectors to be promoted. The India • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, role of the Investment Appraisal Department is a continuous facilitating process from the application • Delegation from the Southern Gujarat Chamber of Commerce & Industry - September managed by BOI. accepting stage till the existence of the projects in Sri Lanka.

Local events• organized by the Investment Promotion Department institution and to the country, committed and contributed immensely with the assistance of the other The Investment Appraisal Department being the heart of the BOI and knowing its significance to the 1. Japan• /PlanningIdentification Sri Lanka and Government developmentof sites for newPrivate of newinvestment Joint investment Forum, zones/projects. zones. October 2019 internal departments. For existing• Determination investors asof wellinfrastructure as non-BOI to companiesbe provided to to present the Zones. issues faced by their businesses and industries for intervention and resolution through facilitation by BOI. Investment Appraisal Department is responsible for evaluating project proposals and formulating • policies and regulations of the BOI to promote both foreign and local investment to achieve the 2. EU - Sriand Lanka handing Investor over Dialogue of operation – March, of Zones October to Zone 2019 Management Units. objectives of the BOI and economic goals of the Government. Undertaking initial development work of new investment zones, establishment of zone offices For EU origin companies to present issues faced by their businesses and industries for intervention and resolution• Providing through assistance facilitation and technical by BOI. inputs for special investment projects with regard to land The projects were approved under the provisions of Section 17 of the BOI Law and with the other matters and provision of infrastructure. provisions under the prevailing Laws of the country. • establishment of an integrated solid waste management project/industrial park and recycle of while continuing the facilitation for the existing projects over 2500 in numbers (Sec. 17- 1926 and Preparation of proposals, identification of sites, obtaining necessary approvals for the The department has contributed significantly to attract new investments both the FDI and domestic water and wastewater systems within the Zones. Sec. 16 – 623). The Department has been contributing to enhance the industrial export percentage • Providing technical support for infrastructure development work carried out by the existing under the BOI. The department facilitation process also has contributed a lot in bringing down the Export Processing Zones/Industrial Parks as and when requested. to reach beyond 80% of the total industrial exports by facilitating the existing companies operating unemployment rate of the country by creating an average of 500,000 direct employment opportunities. • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. facilitate and grant concessions to domestic market oriented sectors including infrastructure, tourism, With the diversification of the policy of the Government in 1992, the BOI has taken steps to promote, • Inspection & making recommendations on technical aspects for the industrial parks which have education etc, in addition to facilitating export oriented projects.

From the inception, Investment Appraisal Department has been playing a key role in identifying areas • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation of investment and making industrial policies using the knowledge and practical experiences gathered through Land Allocation Committee followed by the approvals of Screening Committee and by the human capital of the department. Board of Directors of BOI. The Department is functioning directly under the supervision and leadership of the Director General.

As per the current policy of the government, the department has been structured identifying following sectors to be promoted to achieve the objectives of the BOI and the country as well.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 16 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 17 - 8. Technical Services Department Knowledge Services - IT/BPO/KPO/ Higher Education/ Vocational Training / R & D The Technical ServicesHub/ Department Export of Services/Trading is responsible Housesfor the (Other overall than control Apparel) of /Action Logistics Plan for Services - infrastructure development& Warehousing/ pertaining Regional to Export Operating Processing Headquarters Zones and Industrial Parks managed by ManufacturingBOI. - All manufacturing projects other than apparel Apparel - Apparel & textile including apparel related Trading Houses Key functions of the Apartmentsdepartment /are; Housing establishment & Township of newDevelopments/ Investment Mixed Zones, Developments providing technical Infrastructureinputs for construction, - (Hotel operation, + Service maintenance Apartment +Otherand determination activities) / Shoppingof infrastructure Complexes facilities / in Hospitals/ Road Development/Airports/ Ports/ Industrial Zones zones, advertising vacant lands on availability for selection of investors for new investment projects Hotels/ Villas/ Water Parks/ Theme Parks/ Adventure Tourism/ Air Line Tourism & Leisure - and assisting CompetentService/ Authority Mixed in Developments transferring assets (Hotel+ divested Service to Apartments)the State. Telecommunication / Power & Energy / Waste Management /Mass UtilitiesServices Rendered - by the Department Communication / Water Management Agro Processing / Dairy / Cultivation / Livestock / Inland Fishing / Deep AgricultureThe Technical Services - Department is mainly responsible for; Sea Fishing / Fish Processing • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. Functions of the Investment Appraisal Department • • Eval uating investment proposals in line with the policies and regulations of the BOI investment policy• PlanningIdentificationdocument and published developmentof sites by for Foreign new of newinvestment Exchange investment Department zones/projects. zones. of Central Bank of Sri Lanka and policies of the government. • Determination of infrastructure to be provided to the Zones. • • to implement the investment proposals. Makingand policies handing based over on ofthe operation specific activity, of Zones industry to Zone and Management services sector Units. to approve and facilitate Undertaking initial development work of new investment zones, establishment of zone offices • Making• Providing recommendations assistance for and project technical proposals inputs to obtainfor special approval investment of the Board projects / Chairman/ with regard to land Director General. matters and provision of infrastructure.

• Facilitating• projects granting customs duty and other exemptions as referred in the Schedule (B) of the BOIestablishment Act. of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. • Granting approval for the change of scope of the business • Providing technical support for infrastructure development work carried out by the existing • Granting approval for expansions in terms of location, product, activity etc. Export Processing Zones/Industrial Parks as and when requested.

• Resolving• Providing and intervening technical in operationalsupport for issues operation such as and customs maintenance inquiries, industryof water related supply, issues wastewater etc. and solid waste management schemes of existing Export Processing Zones/Industrial Parks. • Preparation of FDI forecast • Inspection & making recommendations on technical aspects for the industrial parks which have • Recommendation of visa for expatriates (investors and employees).

• Participating• Aencountereddvertising in various vacant environmental investor lands forumsin Zones issues to on addressand availability conflicts and resolve in and respect select the investment of suitable public concerns. investorsrelated issues by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and • Participating in policy making committees with the Ministry of Finance and other line agencies. Board of Directors of BOI. • Preparation of Cabinet Memorandum as instructed by the management and forward to the Ministry of Industrial Export and Investment Promotion.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 18 - - 27 - 8. Technical Services Department • Communicating and co-coordinating with all Line Agencies and Line Ministries for granting approval before and after for projects such as Urban Development Authority, Sri Lanka Tourism Knowledge Services - IT/BPO/KPO/ Higher Education/ Vocational Training / R & D Development Authority, Sri Lanka Tea Board, Geological Survey & Mines Bureau, Sri Lanka Customs, The Technical ServicesHub/ Department Export of Services/Trading is responsible Housesfor the (Other overall than control Apparel) of /Action Logistics Plan for Services - Ministry of Plantation, Ministry of Lands, Forest Department etc. infrastructure development& Warehousing/ pertaining Regional to Export Operating Processing Headquarters Zones and Industrial Parks managed by ManufacturingBOI. - All manufacturing projects other than apparel • Attending and responding to inquiries made by various State Agencies including Law Enforcing Apparel - Apparel & textile including apparel related Trading Houses Authorities, Sri Lanka Customs and other State Agencies etc. Key functions of the Apartmentsdepartment /are; Housing establishment & Township of newDevelopments/ Investment Mixed Zones, Developments providing technical Infrastructureinputs for construction, - (Hotel operation, + Service maintenance Apartment +Otherand determination activities) / Shoppingof infrastructure Complexes facilities / in • Updating the MIS with the project details. Hospitals/ Road Development/Airports/ Ports/ Industrial Zones zones, advertising vacant lands on availability for selection of investors for new investment projects Hotels/ Villas/ Water Parks/ Theme Parks/ Adventure Tourism/ Air Line Tourism & Leisure - Progress of the Year 2019 and assisting CompetentService/ Authority Mixed in Developments transferring assets (Hotel+ divested Service to Apartments)the State. Telecommunication / Power & Energy / Waste Management /Mass New Projects UtilitiesServices Rendered - by the Department Proposed Investment Communication / Water Management No. of Employment Agro Processing / Dairy / Cultivation / Livestock / Inland Fishing / Deep Projects Foreign Local (Numbers) AgricultureThe Technical Services - Department is mainly responsible for; Sea Fishing / Fish Processing (Rs. Mn.) (Rs. Mn.) • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, New project proposals received 70 55,487 108,389 15,860 managed by BOI. Projects approved 59 4,535,801 87,757 21,587 Functions of the Investment Appraisal Department Agreements signed 46 706,700 60,631 8,872 • • Eval uating investment proposals in line with the policies and regulations of the BOI investment policy• PlanningIdentificationdocument and published developmentof sites by for Foreign new of newinvestment Exchange investment Department zones/projects. zones. of Central Bank of Sri Lanka and policies of the government. Expansions • Determination of infrastructure to be provided to the Zones. Proposed Investment No. of Employment • • Projects Foreign Local (Numbers) to implement the investment proposals. Makingand policies handing based over on ofthe operation specific activity, of Zones industry to Zone and Management services sector Units. to approve and facilitate (Rs. Mn.) (Rs. Mn.) Undertaking initial development work of new investment zones, establishment of zone offices New expansion proposals received 88 37,372 41,614 15,574 • Making recommendations for project proposals to obtain approval of the Board / Chairman/ • Providing assistance and technical inputs for special investment projects with regard to land Expansions approved (including proposal Director General. 83 46,600 57,090 16,273 matters and provision of infrastructure. received in previous years) Agreements signed 56 39,929 59,017 14,027 • Facilitating• projects granting customs duty and other exemptions as referred in the Schedule (B) of the BOIestablishment Act. of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. • Granting approval for the change of scope of the business • Providing technical support for infrastructure development work carried out by the existing • Granting approval for expansions in terms of location, product, activity etc. Export Processing Zones/Industrial Parks as and when requested.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 18 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 19 - 3. 8.Research Technical & Policy Services Advocacy Department Department

FunctionsThe Technicaland Duties Services of the DepartmentDepartment is responsible for the overall control of Action Plan for The Researchinfrastructure and Policydevelopment Advocacy pertaining (R&PA) toDepartment Export Processing is entrusted Zones withand Industrialthe duty Parksto carry managed out by necessaryBOI. trade and investment related research along with essential policy revisions that would contribute to BOI objective of attracting Foreign Direct Investment. It is responsible for developing Key functions of the department are; establishment of new Investment Zones, providing technical uphold the national investment promotion policy. The adoption of necessary policy, regulation and specificinputs policies for andconstruction, strategies operation,for the Industry, maintenance Agriculture and anddetermination Services sectors of infrastructure to implement facilities and in frameworkzones, which advertising guide vacantand support lands theon availabilityinvestors. for selection of investors for new investment projects legal changes impact the efficiency and enhance performance of BOI through stable legal and policy Progressand assistingfor the Year Competent 2019 Authority in transferring assets divested to the State.

• IdentifyingServices Renderedthe need to by streamline the Department and ease the investment application and appraisal procedure, the Department prepared the Investment Related Policy Manual, Regulated Laws and Regulations along The Technical Services Department is mainly responsible for; appraisal. This was followed by updating and preparing checklists for investment application, site • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, applicationwith Sector Specificand online Guideline investment Documents, application. covering all laws and regulations applicable for investment managed by BOI. • The investment guidelines for year 2019 were prepared along with the proposed incentive scheme for year• 2020. • Having studied the existing regulations and incentives, the department made proposals to the Ministry• PlanningIdentification of Finance and developmentofto sitesregularize for new ofthe newinvestment investment investment zones/projects. incentives zones. available for large scale companies and IT sector companies. • Determination of infrastructure to be provided to the Zones. • T wherein• the KEPZ Zonal companies underwent an all-inclusive survey of its overall performance, he R & PA Department initiated a Zonal Inspection Survey, a first of its kind in the history of BOI, land utilizationand handing and over maintenance. of operation This of was Zones done to Zonein collaboration Management with Units. other departments. Undertaking initial development work of new investment zones, establishment of zone offices • Several regional comparisons were done including a country comparison and study on the IT Sector;• Providing investment assistance incentives and offered technical for Shipping inputs and for Boatspecial Building; investment and a studyprojects on Tourismwith regard Sector, to land comparingmatters parallel and regionalprovision competitors. of infrastructure. • Various sector brochures were generated during the year 2019 including ones on EU GSP + and its • UK investorsestablishment and the promotionalof an integrated booklet, solid ‘Why waste invest management in Sri Lanka’, project/industrial was formulated. park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Benefits; Education; IT Sector, Tourism; 10 Reasons to invest in Sri Lanka; Promotional brochure for • Preparedwater various and wastewaterbrief notes on systems bilateral within relations the ofZones. Sri Lanka with USA, Turkey, Germany, Thailand, Pakistan, Cambodia, Laos, Philippines and Vietnam; along with updated country statistics for Vietnam, Austria,• Providing Turkey, Jordan, technical Singapore, support Canada, for infrastructure Bahrain, Pakistan, development Venezuela, work The carriedNetherlands, out by Germany the existing and Austria.Export Processing Zones/Industrial Parks as and when requested.

• The• Department Providing preparedtechnical promotional support for presentations operation and for maintenance BOI under several of water areas; supply, wastewater and osolid “Shift waste in Investmentmanagement Trade; schemes Shaping of existing the future Export of Transport Processing and Zones/IndustrialLogistic” Parks.

• oIn spectionInvestment & making Promotion recommendations Presentation for on Sri technical Lanka - Bangladeshaspects for theBusiness industrial Conclave parks which have o Investment opportunities in Sri Lanka” for Commonwealth Cluster meeting

• oAencountered dvertisingInvestment vacant environmental opportunities lands in Zones issuesunder on Nationaland availability conflicts Export in and Strategyrespect select of(NES) suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and o “Port City – Sri Lanka as an Investment Destination” Board of Directors of BOI. o “Trade and Investment Policy Reforms - Sri Lanka” for the 2nd Joint Committee Meeting of the Australia-Sri Lanka Trade and Investment Framework Agreement

o “Investment relations between Sri Lanka and India”

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 20 - - 27 - 3. 8.Research Technical & Policy Services Advocacy Department Department • The Department compiled the Action Plan and Corporate Plan of the BOI for year 2019, identifying key targets and tasks of each department for the year. FunctionsThe Technicaland Duties Services of the DepartmentDepartment is responsible for the overall control of Action Plan for • Formulated the Annual Report for year 2018. The Researchinfrastructure and Policydevelopment Advocacy pertaining (R&PA) toDepartment Export Processing is entrusted Zones withand Industrialthe duty Parksto carry managed out by • The Department participated and contributed in providing inputs, observations and comments at numerous Joint Committee Meetings, Bilateral Investment Treaties (BITs), Trade Negotiations, necessaryBOI. trade and investment related research along with essential policy revisions that would contribute to BOI objective of attracting Foreign Direct Investment. It is responsible for developing Country Dialogues and other meetings including; Key functions of the department are; establishment of new Investment Zones, providing technical o Gap Analysis of Investment Laws under European Union – Sri Lanka Trade Related uphold the national investment promotion policy. The adoption of necessary policy, regulation and specificinputs policies for andconstruction, strategies operation,for the Industry, maintenance Agriculture and anddetermination Services sectors of infrastructure to implement facilities and in Assistance Programme frameworkzones, which advertising guide vacantand support lands theon availabilityinvestors. for selection of investors for new investment projects legal changes impact the efficiency and enhance performance of BOI through stable legal and policy o Observations of BOI on the reduction of sensitive list of South Asia Free Trade Agreement Progressand assistingfor the Year Competent 2019 Authority in transferring assets divested to the State. (SAFTA)

• IdentifyingServices Renderedthe need to by streamline the Department and ease the investment application and appraisal procedure, the Department prepared the Investment Related Policy Manual, Regulated Laws and Regulations along (APTA) Framework Agreement on Investment. The Technical Services Department is mainly responsible for; o Comments on the Sri Lanka’s Position on Amendments of the Asia Pacific Trade Agreement appraisal. This was followed by updating and preparing checklists for investment application, site o Final Draft Agreement Between the Government of the Sultanate of Oman and the • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, applicationwith Sector Specificand online Guideline investment Documents, application. covering all laws and regulations applicable for investment Government of the Democratic Socialist Republic of Sri Lanka on the Promotion and managed by BOI. • The investment guidelines for year 2019 were prepared along with the proposed incentive scheme Reciprocal Protection of Investments. for year 2020. • o Joint Study on the Investment Environment: Sri Lanka and Bangladesh. • Having studied the existing regulations and incentives, the department made proposals to the Ministry• PlanningIdentification of Finance and developmentofto sitesregularize for new ofthe newinvestment investment investment zones/projects. incentives zones. available for large scale companies o BOI Comments on SL-UAE BIT – 3rd Round of Negotiations. and IT sector companies. • Determination of infrastructure to be provided to the Zones. o MoU on the Promotion and Reciprocal Protection of Investment between Afghanistan and • T Sri Lanka. wherein• the KEPZ Zonal companies underwent an all-inclusive survey of its overall performance, he R & PA Department initiated a Zonal Inspection Survey, a first of its kind in the history of BOI, land utilizationand handing and over maintenance. of operation This of was Zones done to Zonein collaboration Management with Units. other departments. Undertaking initial development work of new investment zones, establishment of zone offices • Several regional comparisons were done including a country comparison and study on the IT o Observations of BOI on first session of Political Consultations between Sri Lanka and Egypt Sector;• Providing investment assistance incentives and offered technical for Shipping inputs and for Boatspecial Building; investment and a studyprojects on Tourismwith regard Sector, to land • The Department also participated in various International and Regional Trade Dialogues comparingmatters parallel and regionalprovision competitors. of infrastructure. including; • Various sector brochures were generated during the year 2019 including ones on EU GSP + and its o 56th Standing Committee Meeting & 05th Working Group Meetings of the APTA and 10th • Meeting of Committee of Experts on Agreement of SAFTA. UK investorsestablishment and the promotionalof an integrated booklet, solid ‘Why waste invest management in Sri Lanka’, project/industrial was formulated. park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Benefits; Education; IT Sector, Tourism; 10 Reasons to invest in Sri Lanka; Promotional brochure for o European Union Working Group Meeting held in Brussels. • Preparedwater various and wastewaterbrief notes on systems bilateral within relations the ofZones. Sri Lanka with USA, Turkey, Germany, Thailand, Pakistan, Cambodia, Laos, Philippines and Vietnam; along with updated country statistics for Vietnam, o Sri Lanka – Hungary Joint Economic Meeting on 08th November 2019. Austria,• Providing Turkey, Jordan, technical Singapore, support Canada, for infrastructure Bahrain, Pakistan, development Venezuela, work The carriedNetherlands, out by Germany the existing and Austria.Export Processing Zones/Industrial Parks as and when requested. • In addition to the above, the R & PA Department was also involved in the following; • The Department prepared promotional presentations for BOI under several areas; o Assisted in updating the BOI Website by preparing content descriptions for Incentives, • Providing technical support for operation and maintenance of water supply, wastewater and Investment Policies, Sector Overviews, Priority and Target Sectors, and Existing Laws. solid waste management schemes of existing Export Processing Zones/Industrial Parks. o “Shift in Investment Trade; Shaping the future of Transport and Logistic” o A comparative study on the tax incentives between Sri Lanka and Morocco was conducted. • oIn spectionInvestment & making Promotion recommendations Presentation for on Sri technical Lanka - Bangladeshaspects for theBusiness industrial Conclave parks which have o An in-depth analysis on the Korea – India Comprehensive Economic Partnership Agreement (CEPA) was conducted in parallel to preparing the report and presentation on o Investment opportunities in Sri Lanka” for Commonwealth Cluster meeting Korea Economic Development Partnership (EDP) Mission for High Level Policy Dialogue • oAencountered dvertisingInvestment vacant environmental opportunities lands in Zones issuesunder on Nationaland availability conflicts Export in and Strategyrespect select of(NES) suitable public concerns. investors by an evaluation on Technology & Innovation Policies in the Global Value Chain (GVC). through Land Allocation Committee followed by the approvals of Screening Committee and o The FDI Survey was carried out on a quarterly basis to update the key performance of BOI. o “Port City – Sri Lanka as an Investment Destination” Board of Directors of BOI. o The Department managed the Management Information System (MIS) while conducting o “Trade and Investment Policy Reforms - Sri Lanka” for the 2nd Joint Committee Meeting of the online FDI Survey and maintaining FDI Statistics. A Study was carried out to develop the Australia-Sri Lanka Trade and Investment Framework Agreement a method of Formulating Realized Investment and update the system accordingly. The Department also laid the groundwork necessary to review the Visa system, by preparing a o “Investment relations between Sri Lanka and India” new standard designation list, speeding list and to develop a reporting facility to the Visa system. Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 20 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 21 - 4. 8.Investor Technical Services Services Department Department

The InvestorThe Technical Services ServicesDepartment Department facilitates isafter responsible care services for to the investors overall registered control ofunder Action section Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by 17 of BOI.the BOI Law in the fields of import & export. To provide the above services, the department has five Investor Services Centers located at WTC Colombo, Katunayake, Biyagama, Koggala Export ProcessingServicesKey Renderedfunctions Zones and ofby Kandy the the department Department Industrial Parkare; inestablishment addition to nine of new designated Investment Cargo Zones, Verification providing Centers. technical inputs for construction, operation, maintenance and determination of infrastructure facilities in • Processing Import / Export CUSDECS zones, advertising vacant lands on availability for selection of investors for new investment projects • Vand assisting Competent Authority in transferring assets divested to the State. • Serviceserification Rendered of Import by / Exportthe Department Cargo • Approval for clearance of goods from bonded warehouses IssuingThe Technical of Certificates Services of Department Origin for textile is mainly & apparel responsible products for; exported to EU countries • Approval for sub contracts, transfers, local sales & loans of raw material and machinery • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, • Approvingmanaged of re-import by BOI. & re-export of items

• Liaising• with government organizations in respect of issues faced by BOI enterprises • Processing and approving of Goods Received Notes (GRNs) for Indirect Exports • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. • Processing of web submission for IT/BPO Projects • Determination of infrastructure to be provided to the Zones. • Recommendation to the Controller General of Immigration & Emigration for issuance of expatriate• visas (only for the Zonal Enterprises) and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Progress of the Year 2019 • Providing assistance and technical inputs for special investment projects with regard to land Totalmatters Import and TEUs provision Consigned of infrastructure. to BOI Enterprises 100,427 Total Export TEUs from BOI Enterprises 115,116 • Import Value (USD. Mn.) 4,834 establishment of an integrated solid waste management project/industrial park and recycle of ExportPreparation Value (USD. of Mn.) proposals, identification of sites, obtaining necessary approvals 7,940 for the water and wastewater systems within the Zones. Import Value of Hub Companies (USD. Mn.) 214 Export• Providing Value of technical Hub Companies support (USD. for infrastructure Mn.) development work carried out 150by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 22 - - 27 - 4. 8.Investor Technical Services Services Department Department 5. Project Monitoring Department

The InvestorThe Technical Services ServicesDepartment Department facilitates isafter responsible care services for to the investors overall registered control ofunder Action section Plan for A major function of the Project Monitoring Department is to examine the performance of projects infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Agreement. This remains a regular and constant activity of the Department covering the lifetime of 17 of BOI.the BOI Law in the fields of import & export. To provide the above services, the department BOIthat approvedhave commenced projects commercialthat are in commercial operations operation.in terms of fulfillment of conditions set out in the BOI has five Investor Services Centers located at WTC Colombo, Katunayake, Biyagama, Koggala Export ProcessingServicesKey Renderedfunctions Zones and ofby Kandy the the department Department Industrial Parkare; inestablishment addition to nine of new designated Investment Cargo Zones, Verification providing Centers. technical Services Rendered by the Department inputs for construction, operation, maintenance and determination of infrastructure facilities in • Processing Import / Export CUSDECS • Companies approved under both section 16 and Section 17 of the BOI Law are examined through zones, advertising vacant lands on availability for selection of investors for new investment projects the collection of periodical information based on Audited Financial Statements, Bi-Annual • Vand assisting Competent Authority in transferring assets divested to the State. Performance Statements and employment statistics in respect of such projects. • erification of Import / Export Cargo Services Rendered by the Department • • IssuingApproval of for Certificates clearance of of Origin goods for from textile bonded & apparel warehouses products exported to EU countries eligible for tax holiday, formal termination of Project Agreements that have reached the end The Technical Services Department is mainly responsible for; Other key areas handled by the Department includes, Issuance of Tax Certification to Companies • Approval for sub contracts, transfers, local sales & loans of raw material and machinery of their life cycle as well as those that have been non-compliant with conditions in the BOI • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Agreement, inspection of projects both under Sec. 16 and Sec. 17 of the BOI law to provide • Approvingmanaged of re-import by BOI. & re-export of items performance reports for decision making by relevant Departments and quarterly submission • Liaising• with government organizations in respect of issues faced by BOI enterprises of relevant agreement terminated projects to Commercial Banks for withdrawal of Foreign • Processing and approving of Goods Received Notes (GRNs) for Indirect Exports Currency Banking Units (FCBU) facility granted to such Companies. • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. • Processing of web submission for IT/BPO Projects Progress of the Year 2019 • Determination of infrastructure to be provided to the Zones. • Recommendation to the Controller General of Immigration & Emigration for issuance of expatriate• visas (only for the Zonal Enterprises) and handing over of operation of Zones to Zone Management Units. Companies that had complied with conditions set out in respective Agreements. Undertaking initial development work of new investment zones, establishment of zone offices During the year under review, 111 Nos. of Annual Tax Certificates were issued to BOI registered Progress of the Year 2019 • Providing assistance and technical inputs for special investment projects with regard to land The total collection of Financial Statements from Companies during 2019 numbered 1594. The Totalmatters Import and TEUs provision Consigned of infrastructure. to BOI Enterprises 100,427 inspection of Company activities carried out during the year was 185, following a cohesive monitoring Total Export TEUs from BOI Enterprises 115,116 plan. • Import Value (USD. Mn.) 4,834 establishment of an integrated solid waste management project/industrial park and recycle of Clearing the backlog of dormant projects was regularized during the year under review, by processing ExportPreparation Value (USD. of Mn.) proposals, identification of sites, obtaining necessary approvals 7,940 for the water and wastewater systems within the Zones. the termination of 158 Agreements due to factors such as non-compliance with terms and conditions Import Value of Hub Companies (USD. Mn.) 214 Export• Providing Value of technical Hub Companies support (USD. for infrastructure Mn.) development work carried out 150by the existing by the Companies. It is noteworthy that terminations also occurred as a result of asset take over by Export Processing Zones/Industrial Parks as and when requested. of the Agreement arising from financial issues, difficulties in marketing & sourcing of land etc. faced prospective investors and amalgamation or merger of companies. • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 22 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 23 - 6. 8.Project Technical Implementation Services Department Department

ProjectThe Implementation Technical Services (PI) DepartmentDepartment of is BOI responsible facilitates forsmooth the implementationoverall control of projectsAction Planby for assistinginfrastructure the Investors development to overcome pertaining issues. Main to Export objective Processing of the Project Zones Implementation and Industrial Parks Department managed by is to ensureBOI. successful facilitation of projects, consistent with the implementation programs stipulated in the Agreement with the BOI. Key functions of the department are; establishment of new Investment Zones, providing technical Servicesinputs Rendered for construction, by the Department operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects • Grant extensions to Project Implementation Periods of the Projects to complete the implementation and assisting Competent Authority in transferring assets divested to the State. activities based on the progress made by the Project and the request of the investor.

• IdentifyServices the Rendered issues/bottlenecks/problems by the Department for delays in implementing the Projects and assist/

facilitateThe Technical the investors Services to overcomeDepartment such is mainlyissues/bottlenecks/problems responsible for; during the implementation period. • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, • Send Guidelines to the investors informing the procedure to be followed during the Project managed by BOI. Implementation Period. • • Organize and co-ordinate meetings with investors, internal Departments and relevant Line Agencies• PlanningIdentification with the and intention developmentof sites forof resolving new of newinvestment issues.investment zones/projects. zones.

• Conduct• Determination Initial Investor of infrastructure Awareness Programs to be provided (IIAP) to tothe investors Zones. who have just signed the Agreements with the BOI, to make aware of the functions of the relevant Departments of the BOI especially• with regards to the Project Implementation Department. and handing over of operation of Zones to Zone Management Units. • Carry Undertakingout physical inspectionsinitial development on the projects work of and new advice investment the investors zones, establishmenton the shortcomings of zone of offices their• projects.Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. • Look after/provide guidance/give instructions/facilitate the Projects throughout the Project Implementation• Period. establishment of an integrated solid waste management project/industrial park and recycle of • CommunicatePreparation continuously of proposals, with the identification investors of the of projects, sites, which obtaining are within necessary the implementation approvals for the period,water and update and wastewater the status systems of the projects within thein the Zones. MIS for them to avail the facilities granted by the •BOI. Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. Progress of the Year 2019 • Providing technical support for operation and maintenance of water supply, wastewater and • Implementedsolid waste 27 projects management and 65 schemes projects ofhave existing commenced Export commercial Processing operations.Zones/Industrial 91 Extensions Parks. of Project Implementation Period have been granted for companies subject to the approval of the • Inspection & making recommendations on technical aspects for the industrial parks which have Board. 119 site inspections were done to ascertain the progress of the projects.

• Three Initial Investor Awareness Programs (IIAP) were arranged by the PI Department with other• AencounteredHeadsdvertising of Departments vacant environmental lands to in make Zones issues aware on and availability ofconflicts the functions in and respect select of PIof suitable publicDepartment concerns. investors and byfamiliarize an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and the smoothBoard operation of Directors of theof BOI. projects. In 2019, 29 companies participated in these meetings. with the officers of various departments of the BOI and their functions and for facilitation and

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 24 - - 27 - 6. 8.Project Technical Implementation Services Department Department 7. Legal Department

ProjectThe Implementation Technical Services (PI) DepartmentDepartment of is BOI responsible facilitates forsmooth the implementationoverall control of projectsAction Planby for The Legal Department of the Board of Investment of Sri Lanka is responsible for providing professional assistinginfrastructure the Investors development to overcome pertaining issues. Main to Export objective Processing of the Project Zones Implementation and Industrial Parks Department managed by advice /service to the Board as well as investors. The main role is providing investor related services is to ensureBOI. successful facilitation of projects, consistent with the implementation programs stipulated on legal regime applicable for investment and facilitating Investment Agreements for projects of the in the Agreement with the BOI. enterprises approved under Section 17 of the BOI Law and under Strategic Development Projects Act Key functions of the department are; establishment of new Investment Zones, providing technical No. 14 of 2008 as amended. Servicesinputs Rendered for construction, by the Department operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects Services Rendered by the Department • Grant extensions to Project Implementation Periods of the Projects to complete the implementation and assisting Competent Authority in transferring assets divested to the State. activities based on the progress made by the Project and the request of the investor. • The Department attends to the duties in respect of its role in corporate legal affairs in the • IdentifyServices the Rendered issues/bottlenecks/problems by the Department for delays in implementing the Projects and assist/ organizational litigation against the BOI and initiate legal action on behalf of the BOI in order to protect its legal interest. facilitateThe Technical the investors Services to overcomeDepartment such is mainlyissues/bottlenecks/problems responsible for; during the implementation period. • The investor facilitation legal services are of advisory nature, which include the dissemination • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, • Send Guidelines to the investors informing the procedure to be followed during the Project of information on Sri Lanka’s legal regime applicable for establishment of projects under the managed by BOI. Implementation Period. auspices of Section 17 of BOI Law and under the Strategic Development Project (SDP) Act. • • Organize and co-ordinate meetings with investors, internal Departments and relevant Line • Perusal and approval of Articles of Association of companies to establish projects in Sri Lanka in Agencies• PlanningIdentification with the and intention developmentof sites forof resolving new of newinvestment issues.investment zones/projects. zones. terms of Section 17 of BOI Law. • Conduct Initial Investor Awareness Programs (IIAP) to investors who have just signed the • Determination of infrastructure to be provided to the Zones. Progress of the Year 2019 Agreements with the BOI, to make aware of the functions of the relevant Departments of the BOI especially• with regards to the Project Implementation Department. During the year 2019, BOI has contracted 46 Principal Agreements under Section 17 of the BOI Law and handing over of operation of Zones to Zone Management Units. • Carry Undertakingout physical inspectionsinitial development on the projects work of and new advice investment the investors zones, establishmenton the shortcomings of zone of offices for the establishment of new business ventures in Sri Lanka. The major projects executed are namely; their• projects.Providing assistance and technical inputs for special investment projects with regard to land • S matters and provision of infrastructure. Hambantota for export market • Look after/provide guidance/give instructions/facilitate the Projects throughout the Project ilver Park Petroleum (Private) Limited – To set up a 10 MMTPA Green Field Oil Refinery in Implementation• Period. • C S T Garments (Pvt) Ltd. – To manufacture garments for export • Communicateestablishment continuously of an integrated with the investors solid waste of the management projects, which project/industrial are within the implementation park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the • Fairway Waste Management (Pvt) Ltd. – To set up a 10 MW Waste to Energy Project period,water and update and wastewater the status systems of the projects within thein the Zones. MIS for them to avail the facilities granted by the •BOI. Providing technical support for infrastructure development work carried out by the existing In addition, 197 Supplementary Agreements were contracted with existing BOI projects in relation to Export Processing Zones/Industrial Parks as and when requested. further investment changes of scope of business, relocations, take over and mergers. Progress of the Year 2019 This includes the following projects with considerable investment and employment generation: • Providing technical support for operation and maintenance of water supply, wastewater and • Implementedsolid waste 27 projects management and 65 schemes projects ofhave existing commenced Export commercial Processing operations.Zones/Industrial 91 Extensions Parks. Edotco Services Lanka (Pvt) Ltd – of Project Implementation Period have been granted for companies subject to the approval of the • Inspection & making recommendations on technical aspects for the industrial parks which have Board. 119 site inspections were done to ascertain the progress of the projects. - To install and operate multi-purpose pole solution, street poles that accommodate various functions into the same pole covering a broad range of smart city function which includes • Three Initial Investor Awareness Programs (IIAP) were arranged by the PI Department with erection of multi-purpose poles in 349 locations; other• AencounteredHeadsdvertising of Departments vacant environmental lands to in make Zones issues aware on and availability ofconflicts the functions in and respect select of PIof suitable publicDepartment concerns. investors and byfamiliarize an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and - To provide DC power solutions to telecom operations with 451 energy sites as an expansion the smoothBoard operation of Directors of theof BOI. projects. In 2019, 29 companies participated in these meetings. to the existing project. with the officers of various departments of the BOI and their functions and for facilitation and Sri Lanka Telecom PLC –

- To permit the Enterprise to undertake the Network Expansion project and to include 72 sites as recommended by the Telecommunication Regulatory Commission of Sri Lanka. Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 24 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 25 - 8.- ApartTechnical from the above, Services Legal Department Department is involved in extending its investor related services by provision of leases of lands owned by the BOI to investors in setting up their industries. The Technical Services Department is responsible for the overall control of Action Plan for Eviction of squatters from MAS Fabric Park Thulhiriya infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by In orderBOI. to evict the unauthorized occupants from the MAS Fabric Park Thulhiriya, in 2007 BOI initiated proceedings in the Magistrate’s Court under the State Lands (Recovery of Possession) Act. After Keylong functions drawn appeal of the process, department the Judgment are; establishment was in favour of new of BOIInvestment and was Zones, ordered providing to evict technicalthe unauthorizedinputs for occupants construction, from theoperation, premises. maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects The BOIand evicted assisting all unauthorizedCompetent Authority occupants in transferringfrom the premises assets anddivested handed to the over State. the premises to MAS Fabric Park (Pvt) Ltd (“The Enterprise”) free of all encumbrances. Services Rendered by the Department

The Technical Services Department is mainly responsible for; Million which was payable after eviction of all squatters, made by the Enterprise to the Treasury and The BOI obtained the payment of USD 2.5 Million as a part payment of the final installment of USD 5 the balance• Overall amount control would ofbe paidAction by Planthe Enterprise for infrastructure in due course. development pertaining to EPZs, IPs, etc, managed by BOI. BOI vs. Million Garments (Pvt) Ltd • A sum of Rs. 102,138,350/- of BOI has been seized upon a writ of execution dated 18.12.2014 issued by the Commercial• PlanningIdentification High and Court developmentof sites for for the new enforcement of newinvestment investment of anzones/projects. Arbitral zones. Award. There is an on-going Criminal prosecution• Determination in the High Court of infrastructure against the Managing to be provided Director to of the Million Zones. Garments (Pvt) Ltd. for forging the said Arbitral Award which was enforced by the Commercial High Court. (Case No. 3127/2006). • and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices the said order of the Commercial High Court be set aside and restore the BOI to the Original status Further,• the Providing BOI filed assistancea case for Restitutio-In_Integrumand technical inputs for (CA/RI/08/16) special investment and moved projects the with Court regard to have to land matters and provision of infrastructure. prevent the monies being released to Million Garments (Pvt) Ltd. as before• entering the final decree by the Commercial High Court and sought an Interim Order to In November,establishment 2019, on submission of an integrated made onsolid behalf waste of managementthe BOI by the project/industrial President’s Counsel park Mr. and Ronald recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Perera, P.C.,water the Benchand wastewater decided to systems delay the within Commencement the Zones. of the Arguments of this matter until the end of the High Court cases and till the Judgement by the High Court is pronounced. There is an • Providing technical support for infrastructure development work carried out by the existing Interim Order staying the release of the seized money to the Million Garments (Pvt) Ltd. Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 26 - - 27 - 8.- ApartTechnical from the above, Services Legal Department Department is involved in extending its investor related services 8. Technical Services Department by provision of leases of lands owned by the BOI to investors in setting up their industries. The Technical Services Department is responsible for the overall control of Action Plan for The Technical Services Department is responsible for the overall control of Action Plan for Eviction of squatters from MAS Fabric Park Thulhiriya infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by In orderBOI. to evict the unauthorized occupants from the MAS Fabric Park Thulhiriya, in 2007 BOI BOI. initiated proceedings in the Magistrate’s Court under the State Lands (Recovery of Possession) Act. After Keylong functions drawn appeal of the process, department the Judgment are; establishment was in favour of new of BOIInvestment and was Zones, ordered providing to evict technicalthe Key functions of the department are; establishment of new Investment Zones, providing technical unauthorizedinputs for occupants construction, from theoperation, premises. maintenance and determination of infrastructure facilities in inputs for construction, operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects zones, advertising vacant lands on availability for selection of investors for new investment projects The BOIand evicted assisting all unauthorizedCompetent Authority occupants in transferringfrom the premises assets anddivested handed to the over State. the premises to MAS and assisting Competent Authority in transferring assets divested to the State. Fabric Park (Pvt) Ltd (“The Enterprise”) free of all encumbrances. Services Rendered by the Department Services Rendered by the Department

The Technical Services Department is mainly responsible for; The Technical Services Department is mainly responsible for; Million which was payable after eviction of all squatters, made by the Enterprise to the Treasury and The BOI obtained the payment of USD 2.5 Million as a part payment of the final installment of USD 5 the balance• Overall amount control would ofbe paidAction by Planthe Enterprise for infrastructure in due course. development pertaining to EPZs, IPs, etc, • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. managed by BOI. BOI vs. Million Garments (Pvt) Ltd • • A sum of Rs. 102,138,350/- of BOI has been seized upon a writ of execution dated 18.12.2014 issued by the Commercial• PlanningIdentification High and Court developmentof sites for for the new enforcement of newinvestment investment of anzones/projects. Arbitral zones. Award. There is an on-going Criminal • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. prosecution• Determination in the High Court of infrastructure against the Managing to be provided Director to of the Million Zones. Garments (Pvt) Ltd. for forging • Determination of infrastructure to be provided to the Zones. the said Arbitral Award which was enforced by the Commercial High Court. (Case No. 3127/2006). • • and handing over of operation of Zones to Zone Management Units. and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Undertaking initial development work of new investment zones, establishment of zone offices the said order of the Commercial High Court be set aside and restore the BOI to the Original status Further,• the Providing BOI filed assistancea case for Restitutio-In_Integrumand technical inputs for (CA/RI/08/16) special investment and moved projects the with Court regard to have to land • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. matters and provision of infrastructure. prevent the monies being released to Million Garments (Pvt) Ltd. as before• entering the final decree by the Commercial High Court and sought an Interim Order to • In November,establishment 2019, on submission of an integrated made onsolid behalf waste of managementthe BOI by the project/industrial President’s Counsel park Mr. and Ronald recycle of establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Preparation of proposals, identification of sites, obtaining necessary approvals for the Perera, P.C.,water the Benchand wastewater decided to systems delay the within Commencement the Zones. of the Arguments of this matter until water and wastewater systems within the Zones. the end of the High Court cases and till the Judgement by the High Court is pronounced. There is an • Providing technical support for infrastructure development work carried out by the existing • Providing technical support for infrastructure development work carried out by the existing Interim Order staying the release of the seized money to the Million Garments (Pvt) Ltd. Export Processing Zones/Industrial Parks as and when requested. Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have • Inspection & making recommendations on technical aspects for the industrial parks which have

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI. Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 26 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 27 - Progress8. of Technicalthe Year 2019 Services Department • In year 2019, a sum of Rs. 604.936 Mn. was incurred by the BOI mainly in respect of improvements The Technical Services Department is responsible for the overall control of Action Plan for and upgrading of existing infrastructure in the Export Processing Zones/ Industrial Parks. infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by • CBOI.onstruction & improvements to road networks, buildings, fencing and wastewater schemes including design, estimation and preparation of relevant document for existing zones etc. Key functions of the department are; establishment of new Investment Zones, providing technical • Ainputs sum offor Rs.construction, 110.388 Mn. operation, was incurred maintenance to develop and internal determination infrastructure of infrastructure for new zones facilities at in Wagawattazones, advertising Industrial vacant Zone lands at Horana,on availability proposed for selectionIndustrial of zone investors at Bingiriya for new ininvestment Kurunegala projects District,and assisting proposed Competent Millaniya Authority zone at inBandaragama transferring and assets proposed divested Hambantota to the State. Special Economic Zone which consist of development of internal road network, water supply scheme, perimeter Services Rendered by the Department fencing etc. The Technical Services Department is mainly responsible for; a) Wagawatta Industrial Zone (Established in 2014) • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Constructionmanaged and improvements by BOI. to roads, storm water drains, supply and laying of water transmission line from HEPZ to WIZ, providing street lights, construction of perimeter fence and construction of •

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. b)office Proposed building Industrial etc. were carried Zone at out Bingiriya in the year (Established 2019. in 2019) • Determination of infrastructure to be provided to the Zones. Construction of high tension and low tension power supply lines, construction of perimeter fence, • survey works, Environmental Impact assessment, acquisition of paddy lands etc. were carried out in and handing over of operation of Zones to Zone Management Units. the year, 2019.Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land Total sum ofmatters Rs. 828.625 and provision Mn had beenof infrastructure. utilized under the Action Plan 2019 as follows;

i) Procurements• related to Finance Department, Administration Department and Environment Departmentestablishment of BOI of is an Rs. integrated 113.031 Mn. solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. ii) Developments related to new zones is Rs. 110.38 Mn. • Providing technical support for infrastructure development work carried out by the existing iii) Developments related to existing zones is Rs. 604.936 Mn. Export Processing Zones/Industrial Parks as and when requested.

In addition,• P Technicalroviding technical Services departmentsupport for wasoperation able to andallocate maintenance vacant lands of waterfor many supply, new projectswastewater as and well as for solidexpansion waste of management existing enterprises schemes which of existing had fallen Export vacant Processing due to closeZones/Industrial down of enterprises. Parks. In the year 2019, six Lots having an extent of approximately 10 Acres have been allocated for new • Inspection & making recommendations on technical aspects for the industrial parks which have investment projects.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 28 - - 27 - Progress8. of Technicalthe Year 2019 Services Department 9. Zone Management Department • In year 2019, a sum of Rs. 604.936 Mn. was incurred by the BOI mainly in respect of improvements The Technical Services Department is responsible for the overall control of Action Plan for The Zone Management Department focuses on providing central facilitation to investors operating and upgrading of existing infrastructure in the Export Processing Zones/ Industrial Parks. infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by • CBOI.onstruction & improvements to road networks, buildings, fencing and wastewater schemes location, enabling industries to operate smoothly. within BOI Zones by providing all industrial related services efficiently and effectively from a single including design, estimation and preparation of relevant document for existing zones etc. Key functions of the department are; establishment of new Investment Zones, providing technical The Zone Management Department controls all 12 zones which operate under BOI. The Zone • Ainputs sum offor Rs.construction, 110.388 Mn. operation, was incurred maintenance to develop and internal determination infrastructure of infrastructure for new zones facilities at in Management Department is responsible for overall coordination and supervision of the functions of Wagawattazones, advertising Industrial vacant Zone lands at Horana,on availability proposed for selectionIndustrial of zone investors at Bingiriya for new ininvestment Kurunegala projects Export Processing Zones/Industrial Parks of the BOI. District,and assisting proposed Competent Millaniya Authority zone at inBandaragama transferring and assets proposed divested Hambantota to the State. Special Economic Services Rendered by the Department Zone which consist of development of internal road network, water supply scheme, perimeter Services Rendered by the Department fencing etc. • The Department provides management information related to Zones and assists the Zones to The Technical Services Department is mainly responsible for; resolve their technical and functional issues. a) Wagawatta Industrial Zone (Established in 2014) • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, • The department provides guidance on environmental matters, land issues and facilitates enterprises in the Zones for better prospects. Constructionmanaged and improvements by BOI. to roads, storm water drains, supply and laying of water transmission line from HEPZ to WIZ, providing street lights, construction of perimeter fence and construction of • In addition, the Department assesses the resource requirements and intervenes for allocation of • resources to the Zones/Parks.

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. • Environment monitoring, advisory & laboratory services. b)office Proposed building Industrial etc. were carried Zone at out Bingiriya in the year (Established 2019. in 2019) • Determination of infrastructure to be provided to the Zones. • Day care centers, Sport and recreation facilities, leisure parks. Construction of high tension and low tension power supply lines, construction of perimeter fence, • • Internal transport facilities, bus terminals. survey works, Environmental Impact assessment, acquisition of paddy lands etc. were carried out in and handing over of operation of Zones to Zone Management Units. the year, 2019.Undertaking initial development work of new investment zones, establishment of zone offices • Centralized solid waste handling mechanism. • Providing assistance and technical inputs for special investment projects with regard to land • Provision of lands in EPZs for prospective projects. Total sum ofmatters Rs. 828.625 and provision Mn had beenof infrastructure. utilized under the Action Plan 2019 as follows; Progress of the Year 2019 i) Procurements• related to Finance Department, Administration Department and Environment Departmentestablishment of BOI of is an Rs. integrated 113.031 Mn. solid waste management project/industrial park and recycle of Demonstrating a continuous growth, BOI Zones have achieved progress in different aspects in 2019 Preparation of proposals, identification of sites, obtaining necessary approvals for the as follows; water and wastewater systems within the Zones. ii) Developments related to new zones is Rs. 110.38 Mn. In 2019, BOI Zones were able to facilitate diverse businesses in 281 enterprises within their area of • Providing technical support for infrastructure development work carried out by the existing iii) Developments related to existing zones is Rs. 604.936 Mn. authority. In terms of employment, more than 143,000 employment opportunities were recorded Export Processing Zones/Industrial Parks as and when requested.

In addition,• P Technicalroviding technical Services departmentsupport for wasoperation able to andallocate maintenance vacant lands of waterfor many supply, new projectswastewater as and respectively at the end of 2018. Few enterprises have acquired closed down factories and expanded at the end of 2019 in all Export Processing Zones where as these figures were 291 and 142,283 well as for solidexpansion waste of management existing enterprises schemes which of existing had fallen Export vacant Processing due to closeZones/Industrial down of enterprises. Parks. operations and the exports have been increased. However still there about 16 different sizes of In the year 2019, six Lots having an extent of approximately 10 Acres have been allocated for new enterprises closed down and management has taken decision to promote those enterprises for new • Inspection & making recommendations on technical aspects for the industrial parks which have ventures. investment projects.

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation As one of the significant contributors to the Sri Lankan economy, BOI Zonal Enterprises have achieved through Land Allocation Committee followed by the approvals of Screening Committee and the descending order KEPZ, BEPZ, SEPZ, KgEPZ have contributed mainly to the export revenue. Rs.572.76 Bn. of total exports during 2019 and this is a 14% increase compared to 2018 exports. In Board of Directors of BOI. The operational revenue generation of all Zones has been recorded as Rs.3,166.3 Mn. in 2019 with

total19% operatingincrease compared revenue. to 2018. The largest contributor to operational revenue is KEPZ, having generated total operational revenue of Rs.1,087.6 Mn. in 2019, which is a 34% contribution to the

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 28 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 29 - 8. Technical Services Department byZonal the operating zones in 2019.expenditure In 2017 has and increased 2018, operational 9% to the value profit of has Rs.2, decreased 149.1 Mn. gradually in 2019. Recordingrecording a 44%The increase Technical in comparison Services Department to 2018, operational is responsible profit for of Rs.1,the overall017.2 Mn.control has beenof Action achieved Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by 8% andBOI. 13% decline respectively compared to the respective preceding years. However, turning thisEven profit though, declining MwEPZ trend, and WEPZin 2019, have 44% incurred operational losses profit in 2019, increase both was zones achieved have improved by BOI Zones. their financialKey statusfunctions by gainingof the department a lower amount are; establishment of loss compared of new to Investment 2018. Despite Zones, incurring providing losses technical over theinputs past for years, construction, KgEPZ has operation, achieved maintenancean operational and profit determination of Rs.8.0 Mn. of ininfrastructure 2019. facilities in To elevatezones, the advertising status of vacantthe Zones lands and on to availability achieve the for maximum selection of of investors the inception for new objectives investment of the projects Zones,and BOI assisting has launched Competent multiple Authority projects in transferring in 2019. assets divested to the State.

FaceServices lifting Rendered project for by Zones the Department has been commenced, starting from KEPZ.

ElectronicThe Technical gate Services pass system Department project has is mainly been initiated responsible with for; the aim of increasing the security of

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Ptherojects Zonesmanaged to and enhance efficiency by BOI. the of waste security management inspections. processes have been implemented in multiple BOI Zones in 2019. • Energy saving and green projects to reduce the carbon foot print. • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Continuation of infrastructure development work for various sectors such as augmentation of • Determination of infrastructure to be provided to the Zones. waste water treatment plants, water supply , streetlights , renovations of buildings , solar panel installations• on rooftops of BOI buildings, new facility buildings etc., with an average expenditure of Rs 1and Bn. handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 30 - - 27 - 8. Technical Services Department 10. Environment Management Department Zonal operating expenditure has increased 9% to the value of Rs.2, 149.1 Mn. in 2019. Recording by the zones in 2019. In 2017 and 2018, operational profit has decreased gradually recording The functions with regard to the Environment Protection and Management pertaining to the a 44%The increase Technical in comparison Services Department to 2018, operational is responsible profit for of Rs.1,the overall017.2 Mn.control has beenof Action achieved Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by projects within the purview of the BOI are being executed by the Environment Management Department, in consultation and with concurrence of the Central Environmental Authority (CEA). 8% andBOI. 13% decline respectively compared to the respective preceding years. However, turning thisEven profit though, declining MwEPZ trend, and WEPZin 2019, have 44% incurred operational losses profit in 2019, increase both was zones achieved have improved by BOI Zones. their Functions of the Environment Management Department are; granting environmental approvals financialKey statusfunctions by gainingof the department a lower amount are; establishment of loss compared of new to Investment 2018. Despite Zones, incurring providing losses technical for projects, issuing Environmental Protection Licenses, investigating environment related over theinputs past for years, construction, KgEPZ has operation, achieved maintenancean operational and profit determination of Rs.8.0 Mn. of ininfrastructure 2019. facilities in complaints and resolving them, liaising with other agencies, organizations and departments in To elevatezones, the advertising status of vacantthe Zones lands and on to availability achieve the for maximum selection of of investors the inception for new objectives investment of the projects activities related to Natural Resources Management and Environmental Pollution Control etc. and assisting Competent Authority in transferring assets divested to the State. Zones, BOI has launched multiple projects in 2019. Services Rendered by the Department FaceServices lifting Rendered project for by Zones the Department has been commenced, starting from KEPZ. • Granting environmental clearances to projects that operate under Section 17 of the BOI Law, with the concurrence of the Central Environmental Authority (CEA). ElectronicThe Technical gate Services pass system Department project has is mainly been initiated responsible with for; the aim of increasing the security of With respect to projects which require Environmental Impact Assessment process (EIA) in terms • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, of the National Environmental (Procedure for approval of projects) Regulations, participated in Ptherojects Zonesmanaged to and enhance efficiency by BOI. the of waste security management inspections. processes have been implemented in the scoping meetings held in that regard and thereby facilitated the approval procedure. multiple BOI Zones in 2019. • Also functions as the Project Approving Agency (PAA) in the event the CEA appoints the BOI so. Energy saving and green projects to reduce the carbon foot print. • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. • Issuing Environmental Protection Licenses (EPLL) with the concurrence of the CEA. Continuation of infrastructure development work for various sectors such as augmentation of • Determination of infrastructure to be provided to the Zones. • Issuing Environmental Recommendations (ERR) to the Telecommunication Regulatory waste water treatment plants, water supply , streetlights , renovations of buildings , solar panel Commission (TRC) in respect of sites proposed for erection of telecommunication towers. installations• on rooftops of BOI buildings, new facility buildings etc., with an average expenditure • Investigating into complaints concerning environment pollution pertaining to BOI projects and of Rs 1and Bn. handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices resolve them by ensuring required pollution control measures are in place. • Providing assistance and technical inputs for special investment projects with regard to land • Mo matters and provision of infrastructure. In Additionnitoring to the the �bove; industrial effluent discharged in the Export Processing Zones. • establishment of an integrated solid waste management project/industrial park and recycle of • Served in the National Committees formed on the following International Conventions related to Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. environment/chemicals for which Sri Lanka is signatory. - National Coordination Committee on Basel, Rotterdam, Stockholm and Minamata • Providing technical support for infrastructure development work carried out by the existing Conventions. Export Processing Zones/Industrial Parks as and when requested. - Montreal Protocol on substances that deplete the Ozone Layer. • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. - United Nations Framework Convention on Climate Change (UNFCCC).

• Inspection & making recommendations on technical aspects for the industrial parks which have It was ensured that all BOI projects operate in compliance with these International Conventions. • C by the Precursor Control Authority. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation onvention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances. This is chaired through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 30 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 31 - Progress8. of Technicalthe Year 2019 Services Department

Functions Number The Technical Services Department is responsible for the overall control of Action Plan for 1. (a) No. of environmental clearances granted for projects. 62 infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by (b) No. of environmental clearances granted for expansions/relocations. 36 BOI. 2. No. of EPLL issued/renewed. *987 3. No. of ERR issued in respect of sites proposed for erection of **266 Key functions of the department are; establishment of new Investment Zones, providing technical Telecommunication Towers. inputs for construction, operation, maintenance and determination of infrastructure facilities in 4. No. of complaints attended concerning environmental issues and resolved 138 5.zones, Environmental advertising Monitoring vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State. 1,325 Services (a) No. of Rendered effluent samples by the Department collected from industries. (c) No. of water samples 247 (b) No. of effluent samples collected from common sewage treatment plant. * The- Income Technical Rs. 10,198,150/= Services from Department EPL processing is mainly responsible for; ** - Income Rs. 7,581,000/= from ER fee for erection of telecommunication towers • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, It was ensuredmanaged that all by BOI BOI. Projects operate in compliance with these International Conventions. In Income of Rs. 17.779 Mn. was generated by issuing of Environmental Protection Licenses (EPLL) and issuing of Environmental• Recommendations (ERR) to telecommunication towers. Completed EIA of the Bingiriya Industrial• ZonePlanningIdentification and is and awaiting developmentof sites for for approval new of newinvestment of the investment Provincial zones/projects. zones. Environment Authority of the North Western Provincial Council (NWPC). • Determination of infrastructure to be provided to the Zones. Achieved the target set for year 2017 under the ISO 9001:2008 standard based quality management • Environmentaland Protectionhanding over License of operation (EPL). This of Zones target to was Zone achieved. Management Units. system. UnderUndertaking this, the setinitial target development was to ensure work that of new98% investmentof the BOI projects zones, establishmentare in possession of zone of the offices Represented• Providing the following assistance Technical and Committees technical andinputs actively for special contributed investment in its decision projects making with processes. regard to land • mattersCommittee and provision to decide of sitinginfrastructure. of high & medium polluting industries outside export • processing zones and industrial parks. • establishmentBasel Technical of anEvaluation integrated Committee. solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. • Technical Advisory Committee for Management of Industrial Chemicals (TACMIC). • Providing technical support for infrastructure development work carried out by the existing All these three Technical Committees were chaired by the CEA. Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 32 - - 27 - Progress8. of Technicalthe Year 2019 Services Department 11. Engineering Approvals & Special Projects Department

Functions Number The Technical Services Department is responsible for the overall control of Action Plan for Engineering Approvals & Special Projects Department (EA & SP) consists of two units namely; 1. (a) No. of environmental clearances granted for projects. 62 infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Engineering Approvals Section and Land Section. Engineering Approvals Section functions as the (b) No. of environmental clearances granted for expansions/relocations. 36 BOI. regulatory arm of the BOI for location related approvals, and provides four key services namely; 2. No. of EPLL issued/renewed. *987 Location Approval, Building Plan Approval, Quantity Certification and Certificate of Conformity 3. No. of ERR issued in respect of sites proposed for erection of **266 Key functions of the department are; establishment of new Investment Zones, providing technical Telecommunication Towers. for projects operating under the Section 17 of the BOI Law. Land Section is responsible for inputs for construction, operation, maintenance and determination of infrastructure facilities in 4. No. of complaints attended concerning environmental issues and resolved 138 maintaining and updating Land Bank of non-zonal BOI owned lands, state lands and private 5.zones, Environmental advertising Monitoring vacant lands on availability for selection of investors for new investment projects lands to be offered for investment projects. and assisting Competent Authority in transferring assets divested to the State. Services Rendered by the Department 1,325 Services (a) No. of Rendered effluent samples by the Department collected from industries. (c) No. of water samples 247 Engineering Approvals Section (b) No. of effluent samples collected from common sewage treatment plant. * The- Income Technical Rs. 10,198,150/= Services from Department EPL processing is mainly responsible for; ** - Income Rs. 7,581,000/= from ER fee for erection of telecommunication towers Location Approvals - Location approval is a pre-requisite to sign the agreement between BOI and the • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, investor. EA&SP Department performs preliminary site inspection jointly with the Environmental It was ensuredmanaged that all by BOI BOI. Projects operate in compliance with these International Conventions. In Income Management Department. Thereafter, the other relevant outside agencies are consulted and a brief of Rs. 17.779 Mn. was generated by issuing of Environmental Protection Licenses (EPLL) and issuing of assessment is carried out to identify the suitability of the location. At the end, when all the relevant • Environmental Recommendations (ERR) to telecommunication towers. Completed EIA of the Bingiriya approvals are received from relevant line agencies/authorities, the letter of site approval is issued. Industrial• ZonePlanningIdentification and is and awaiting developmentof sites for for approval new of newinvestment of the investment Provincial zones/projects. zones. Environment Authority of the North Western Building Plan Approvals - Construction of proposed projects are supposed to commence construction Provincial Council (NWPC). • Determination of infrastructure to be provided to the Zones. work only after the building plan approval is obtained. Building plan approval is issued when the Achieved the target set for year 2017 under the ISO 9001:2008 standard based quality management plans of the proposed buildings meet all the standards required by relevant regulations. • and handing over of operation of Zones to Zone Management Units. EnvironmentalUndertaking Protection initial License development (EPL). This work target of was new achieved. investment zones, establishment of zone offices system. Under this, the set target was to ensure that 98% of the BOI projects are in possession of the Law can import items and materials in the approved list on duty free basis. The role of the EA&SP • Providing assistance and technical inputs for special investment projects with regard to land Quantity Certificates for Importing Construction Items - Projects approved under Section 17 of BOI Represented the following Technical Committees and actively contributed in its decision making processes. Department is to certify relevant quantities of the particular construction items/materials for the • mattersCommittee and provision to decide of sitinginfrastructure. of high & medium polluting industries outside export • processing zones and industrial parks. current consignment with the previous quantities imported and assessing the total requirement of project, whenever those are imported. Certificates are issued after checking the quantity of the • establishmentBasel Technical of anEvaluation integrated Committee. solid waste management project/industrial park and recycle of the project. Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. • Technical Advisory Committee for Management of Industrial Chemicals (TACMIC). • Providing technical support for infrastructure development work carried out by the existing ensure whether it has been completed in accordance with the approved plans. In addition, at this All these three Technical Committees were chaired by the CEA. Certificate of Conformity - Once construction is completed, EA&SP Department inspects the site to Export Processing Zones/Industrial Parks as and when requested. ensure their proper usage. • Providing technical support for operation and maintenance of water supply, wastewater and inspection the items/materials imported under duty free facility are physically verified, in order to solid waste management schemes of existing Export Processing Zones/Industrial Parks. Land Section

• Inspection & making recommendations on technical aspects for the industrial parks which have Land section is responsible for providing the following services to the investors to obtain lands for their investment projects under BOI.

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation • Acquiring state lands/private lands when necessary for the construction of BOI zones through Land Allocation Committee followed by the approvals of Screening Committee and • Maintaining a Land Bank of state and private lands for the use of new investors Board of Directors of BOI. • Assisting the Legal Department and other Departments of BOI in the matters pertaining to lands

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 32 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 33 - Progress8. of Technicalthe Year 2019 Services Department Acquisition of Land at Bingiriya The Technical Services Department is responsible for the overall control of Action Plan for infrastructureAcquisition process development was completed pertaining and to acquiredExport Processing around 440 Zones acres and from Industrial Land Reform Parks managed by BOI.Commission to BOI to set up Bingiriya Export Processing Zone during the year 2019. Acquisition of Land at Baladaksha Mawatha Vesting process pertaining to the land at Key functions of the department are; establishment of new Investment Zones, providing technical Baladaksha Mawatha was completed during the year. inputs for construction, operation, maintenance and determination of infrastructure facilities in zones,Acquisition advertising of Lands vacant at Hambantota lands on availability for selection of investors for new investment projects andSu rveyingassisting and Competent vesting process Authority of a in block transferring of land in assets extent divested of around to the 950 State. acres from

Services Rendered by the Department Authority of Sri Lanka were submitted to the Presidential Secretariat. Arabokka, Hambantota were almost completed and finalized vesting orders by the Mahaweli TheAcquisition Technical of Services paddy lands Department having totalis mainly extent responsible of about 107 for; acres in progress.

Ac• quiOverallsition controlof lands offor Action Millaniya Plan Export for infrastructure Processing Zone development pertaining to EPZs, IPs, etc, managed by BOI. Acquisition of lands in extent of about 240 acres was commenced, but could not be completed• due to the objections raised by the plantation company.

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 34 - - 27 - Progress8. of Technicalthe Year 2019 Services Department 12. Industrial Relations Department Acquisition of Land at Bingiriya The Technical Services Department is responsible for the overall control of Action Plan for The Industrial Relations (IR) Department of the BOI plays a vital role in maintaining a sound industrial infrastructureAcquisition process development was completed pertaining and to acquiredExport Processing around 440 Zones acres and from Industrial Land Reform Parks managed by Commission to BOI to set up Bingiriya Export Processing Zone during the year 2019. BOI. relationsServices climateRendered conducive by the Departmentfor higher efficiency and productivity within the BOI Enterprises. Acquisition of Land at Baladaksha Mawatha Vesting process pertaining to the land at Key functions of the department are; establishment of new Investment Zones, providing technical • Promote and facilitate to maintain labour management co-operation, industrial peace & harmony Baladaksha Mawatha was completed during the year. inputs for construction, operation, maintenance and determination of infrastructure facilities in and higher productivity in the enterprises under the purview of the BOI. Acquisition of Lands at Hambantota zones, advertising vacant lands on availability for selection of investors for new investment projects • Provide advisory services and guidance on Labour Laws / regulations and IR practices to andSu rveyingassisting and Competent vesting process Authority of a in block transferring of land in assets extent divested of around to the 950 State. acres from management and employees of BOI Enterprises where necessary.

Services Rendered by the Department • Assist investors to meet their manpower requirement through the BOI Employment Service Authority of Sri Lanka were submitted to the Presidential Secretariat. Arabokka, Hambantota were almost completed and finalized vesting orders by the Mahaweli Units functioning in EPZs, and organizing recruitment assistance programs. TheAcquisition Technical of Services paddy lands Department having totalis mainly extent responsible of about 107 for; acres in progress. Progress of the Year 2019 Ac• quiOverallsition controlof lands offor Action Millaniya Plan Export for infrastructure Processing Zone development pertaining to EPZs, IPs, etc, • Maintaining Labour Standards managed by BOI. Acquisition of lands in extent of about 240 acres was commenced, but could not be Periodical Labour Audits are being carried out in BOI Enterprises by the Industrial Relations completed• due to the objections raised by the plantation company.

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. of labour standards stipulated in the Labour Laws / Regulations and BOI Labour Standards & EmploymentOfficers attached Relations to Zones Manual. and the Head Office of the BOI with a view to monitor the compliance • Determination of infrastructure to be provided to the Zones. In the year 2019, Labour Audits have been carried out in 1119 BOI Enterprises in Zones and • outside Zones, as well and remedial actions have been taken to rectify the shortcomings / lapses and handing over of operation of Zones to Zone Management Units. found at the above audits. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land • Promotion of Labour Management Co-operation matters and provision of infrastructure. Employees’ Councils are the main tool utilized in promoting labour management co-operation in BOI Enterprises. Whilst encouraging and coordinating with Trade Unions, Employees’ Councils • are guided with a view to promote wider participation of Employees in BOI Enterprises in labour establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the management co-operation. water and wastewater systems within the Zones. During the year 2019, Industrial Relations Department facilitated in formation and operation of • Providing technical support for infrastructure development work carried out by the existing 206 Employees’ Councils. Export Processing Zones/Industrial Parks as and when requested. • Establishment of Worker Facilitation Centres • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. Wathupitiwala Export Processing Zones and Kandy Industrial Park during the year 2019, for the There are five (05) Facilitation Centres in operation at Katunayake, Biyagama, Koggala, • Inspection & making recommendations on technical aspects for the industrial parks which have freely and privately as and when necessary. use of Trade Union Officials to meet their members working in the respective zone enterprises • Organizing Awareness Programme • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and 264 Awareness Programms have been conducted during the year 2019 for Employees and Board of Directors of BOI. General Awareness, Workplace Co-operation, Decent Work Practices and Health & Safety, etc. in collaborationManagement with Officials relevant of the government BOI Enterprises agencies. on various subjects such as Social Dialogue,

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 34 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 35 - • Mediation8. Technical / Conciliation Services for Settlement Department of Industrial Disputes

anyThe industrial Technical dispute Services occurred Department in BOI Enterprises.is responsible 14 industrialfor the overall disputes control / strikes of occurredAction Plan in for BOIIninfrastructure maintaining enterprises industrialdevelopment during the peace year pertaining & 2019harmony were to Export in resolved the BOI Processing enterprises, with the Zones support IR and Officers Industrialof Labour mediate ParksDepartment in settling managed by BOI.

• officialsRecruitment where Assistance necessary. Scheme Key functions of the department are; establishment of new Investment Zones, providing technical Duringinputs thefor construction,year 2019, numbering operation, 75,022 maintenance job seekers and weredetermination registered of with infrastructure the Employment facilities in Serviceszones, advertising Units at EPZs vacant out lands of which, on availability 74,447 have for selectionbeen referred of investors to enterprises for new investmentfor placement projects interviews. and assisting Competent Authority in transferring assets divested to the State. In addition, the Department facilitates in organizing Job Fairs / Career guidance programs inServices collaboration Rendered with by other the Department relevant agencies in order to attract more job seekers to the employmentThe Technical opportunities Services Department existing is in mainly BOI Enterprises. responsible for;During the period under review, 21 such job fairs / career guidance programs have been conducted island wide. • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, • Establishment of a Day Care Centre (Crèche) and Pre-school managed by BOI. The establishment of Day Care Centres and Pre-school at KEPZ and BEPZ provide a tangible • solution for employees who are willing to continue their jobs while keeping their kids in a secured• PlanningIdentification place within and developmentof the sites zones, for new and of newinvestmentthese investment also provide zones/projects. zones. a solution to reduce high labour turnover and create attractive impression of the zone for new recruits. At the end of the year, 60 kids have• beenDetermination facilitated ofin infrastructurethe Day Care Centre to be provided at KEPZ and,to the 45 Zones. among them were participating in the pre-school. 29 kids have been facilitated in the Day Care Centre at BEPZ and 15 among them • were participating in the pre-school. In Mawathagama EPZ, 27 kids have been facilitated in the and handing over of operation of Zones to Zone Management Units. Day CareUndertaking Centre and initial 16 among development them were work participating of new investment in the pre-school. zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 36 - - 27 - • Mediation8. Technical / Conciliation Services for Settlement Department of Industrial Disputes 13. Information Technology Department anyThe industrial Technical dispute Services occurred Department in BOI Enterprises.is responsible 14 industrialfor the overall disputes control / strikes of occurredAction Plan in for Information Technology Department has been setup to plan, design, develop, evaluate and implement BOIIninfrastructure maintaining enterprises industrialdevelopment during the peace year pertaining & 2019harmony were to Export in resolved the BOI Processing enterprises, with the Zones support IR and Officers Industrialof Labour mediate ParksDepartment in settling managed by IT solutions for BOI. It also coordinates procurement, commissioning and maintenance of ICT resource BOI. of the organization. IT Department manages the organization’s corporate network to provide IT infrastructure with • officialsRecruitment where Assistance necessary. Scheme Key functions of the department are; establishment of new Investment Zones, providing technical hardware & software for communication and all IT requirement of its users to give around-the-clock Duringinputs thefor construction,year 2019, numbering operation, 75,022 maintenance job seekers and weredetermination registered of with infrastructure the Employment facilities in service. Serviceszones, advertising Units at EPZs vacant out lands of which, on availability 74,447 have for selectionbeen referred of investors to enterprises for new investmentfor placement projects interviews. and assisting Competent Authority in transferring assets divested to the State. Services Rendered by the Department In addition, the Department facilitates in organizing Job Fairs / Career guidance programs Providing advice and technical support to identify, evaluate & implement IT solutions to the inServices collaboration Rendered with by other the Department relevant agencies in order to attract more job seekers to the organization. employmentThe Technical opportunities Services Department existing is in mainly BOI Enterprises. responsible for;During the period under review, 21 Planning, Recommending, Coordinating the procurement, commissioning and maintenance such job fairs / career guidance programs have been conducted island wide. of ICT resource of BOI. • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, • Establishment of a Day Care Centre (Crèche) and Pre-school Enhancing and managing the corporate networks and data communication facilities. managed by BOI. Designing, developing, implementing and maintaining software application systems required The establishment of Day Care Centres and Pre-school at KEPZ and BEPZ provide a tangible • by the organization. solution for employees who are willing to continue their jobs while keeping their kids in a Providing user-support in solving the issues relating to hardware, software, communication, secured place within the zones, and these also provide a solution to reduce high labour turnover • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. network, e-mail and virus infections. and create attractive impression of the zone for new recruits. At the end of the year, 60 kids have• beenDetermination facilitated ofin infrastructurethe Day Care Centre to be provided at KEPZ and,to the 45 Zones. among them were participating in Supporting other departments in using information technology in business re-engineering the pre-school. 29 kids have been facilitated in the Day Care Centre at BEPZ and 15 among them efforts. • were participating in the pre-school. In Mawathagama EPZ, 27 kids have been facilitated in the Developing and maintaining corporate data dictionary, database and related system and handing over of operation of Zones to Zone Management Units. Day CareUndertaking Centre and initial 16 among development them were work participating of new investment in the pre-school. zones, establishment of zone offices documentation. • Providing assistance and technical inputs for special investment projects with regard to land Progress of the Year 2019 matters and provision of infrastructure. Enhancement of IT Resources and Infrastructure • • Enhanced the BOI Server Room by installing two 15KVA UPSs. establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. • BOI installed two numbers of high-end new servers to web applications and database backups. • E • Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. • Pxpanded the BOI Network of CVT Office adding three numbers of new data cables.

• Providing technical support for operation and maintenance of water supply, wastewater and ermit Office of KEPZ was setup with a new computer network Installing 14 numbers of data solid waste management schemes of existing Export Processing Zones/Industrial Parks. • cablesEnhanced with the UTP network and fiber. of SEPZ laying seven numbers of new network cable extensions.

• Inspection & making recommendations on technical aspects for the industrial parks which have • Procured and installed 134 numbers of Personnel Computers, ten numbers of Laptops and 48

• numbersProcured ofand Printers installed for 194 BOI numbers Offices including of UPSs, and Zones. related network devices (NIC, Media Converters • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation etc.) to enhance the productivity of users and organizational network. through Land Allocation Committee followed by the approvals of Screening Committee and Developments and implementations of Software Applications Board of Directors of BOI. • Implemented a LPOPP for Pre-paid Account & Invoice Settlements purpose. • Integrated the BOI payment related service systems with Oracle Finance System (EBS). • Assisted Finance Department to implement the Integrated Accounting System.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 36 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 37 - Improvements8. Technical of the existing Services system Department • Visa Re The Technical Services Department is responsible for the overall control of Action Plan for withinfrastructure morecommendation comprehensive development System: decision pertaining Various making enhancements to Export information. Processing were done Zones to theand system Industrial to fulfill Parks the managed user by requirements and also a number of report modifications were provided to facilitate management BOI. • FD to both systems to incorporate and link with the features of FDI online submission system Key functions of the department are; establishment of new Investment Zones, providing technical accordingly.I back office system and online System : The modifications and improvements were introduced inputs for construction, operation, maintenance and determination of infrastructure facilities in • Imzones,provements advertising have vacant been lands done on for availability MIS, Status for selectionChanges ofSystem investors etc. forto newcater investment to changing projects requirements of user departments. and assisting Competent Authority in transferring assets divested to the State.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 38 - - 27 - Improvements8. Technical of the existing Services system Department 14. Media & Publicity Department • Visa Re The Technical Services Department is responsible for the overall control of Action Plan for The Media Department of BOI is responsible for external communications to create awareness about withinfrastructure morecommendation comprehensive development System: decision pertaining Various making enhancements to Export information. Processing were done Zones to theand system Industrial to fulfill Parks the managed user by investment opportunities in Sri Lanka, the country’s business climate and the organization’s success requirements and also a number of report modifications were provided to facilitate management BOI. through a variety of media addressed to different types of audience. • FD Services Rendered by the Department to both systems to incorporate and link with the features of FDI online submission system Key functions of the department are; establishment of new Investment Zones, providing technical accordingly.I back office system and online System : The modifications and improvements were introduced • Disseminate the media releases frequently in both Sinhala and English languages inputs for construction, operation, maintenance and determination of infrastructure facilities in • • Imzones,provements advertising have vacant been lands done on for availability MIS, Status for selectionChanges ofSystem investors etc. forto newcater investment to changing projects requirements of user departments. and assisting Competent Authority in transferring assets divested to the State. • DesignPublish and advertisements upgrade the onpromotional land availability, materials special such events as brochures, and functions leaflets, documentaries etc. • Participate at national events such as investment promotion activities, image building activities Services Rendered by the Department and exhibitions etc. The Technical Services Department is mainly responsible for; • Maintain an image bank with still photographs and video footage.

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Progress of the Year 2019 managed by BOI. The Media Department was engaged in a number of important activities in 2019. This included • participating in exhibitions, organizing press conferences, image building campaigns, media releases, social media activities and designing of Advertisement and BOI Publications etc., • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. a) Participating in Exhibitions; • Determination of infrastructure to be provided to the Zones. The Media Department participated in major National Exhibitions in 2019. • o “Enterprise Sri Lanka” Exhibition and “Jaffna Trade Fair” at Jaffna. and handing over of operation of Zones to Zone Management Units. o “Younpura National Programme” Exhibition at Weerawila. Undertaking initial development work of new investment zones, establishment of zone offices o “Shilpa Sena” Exhibiton at Colombo (BMICH). • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. o “BOI Job Fair” at Mawanella and Galigamuwa. The pavilions of BOI for the above, showcased to the general public the positive impact of & investment • on the national economy in term of Foreign Direct Investment, foreign exchange, exports, employment establishment of an integrated solid waste management project/industrial park and recycle of generation and technological transfers. Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. b) Organizing Press Conferences; • Providing technical support for infrastructure development work carried out by the existing The Media Department set up and developed the BOI image bank with a total of 3,000 new Export Processing Zones/Industrial Parks as and when requested. photo images. This Photographic archive which is an example of capacity building, can be used to illustrate publications, documents and media releases as it covers a wide range of activities of • Providing technical support for operation and maintenance of water supply, wastewater and the Board as well as diverse economic sectors. solid waste management schemes of existing Export Processing Zones/Industrial Parks. Japanese language in order to enhance the business climate of Sri Lanka. • Inspection & making recommendations on technical aspects for the industrial parks which have In addition to the above, Media Department took initiative in producing two short films in Korean and A short video on “Dubai EXPO 2020” promoting Sri Lanka to the world with Kumar Sangakkara and Mahela Jayawardene too was produced by the BOI Media Department. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation c) Media Releases; through Land Allocation Committee followed by the approvals of Screening Committee and In the area of information dissemination, the Media Department of BOI issued 43 media releases Board of Directors of BOI. in English, 15 in Sinhala and one in Tamil, creating considerable awareness on the BOI’s role and achievements on the investment front. d) Social Media Activities; The Media Department has sent out a large number of Tweets covering many activities.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 38 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 39 - • I8.n house Technical Designing Services Department Media Department has designed several back drops for special events, a New Year Greeting Card The Technical Services Department is responsible for the overall control of Action Plan for Drives, Pull-up Banners, Annual Report Cover, a Note Book Cover for the HR Department and the infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOIfor the Investment Director General Guide 2018 in the Brochure. year 2019, This Participation in-house Booklets,designing Banners, of documents Leaflets, has ID resulted Cards, Pen in considerableBOI. savings of resources for the BOI.

• MKeyedia functions Coverage: of the department are; establishment of new Investment Zones, providing technical Theinputs Media for Departmentconstruction, organized operation, media maintenance coverage forand the determination following major of events:infrastructure facilities in zones,- Opening advertising Ceremony vacant of lands Bingiriya on availability Export Processing for selection Zone. of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State. Mirijjawila EPZ. Services- The GroundRendered Breaking by the CeremonyDepartment of an Oil refinery and Cement manufacturing plant at - Ministrial visit at Rigit Tyre factory at Horana EPZ. The- TechnicalOpening Ceremony Services Department of a Leisure isproject mainly at responsible Bogambara. for;

• Advertisements:• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Five (05)managed Newspaper by BOI. advertisements were published by the Media Department in 2019.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 40 - - 27 - • I8.n house Technical Designing Services Department 15. Administration Department Media Department has designed several back drops for special events, a New Year Greeting Card The Technical Services Department is responsible for the overall control of Action Plan for The Administration Department plays a vital role in the BOI and provides the logistical support for Drives, Pull-up Banners, Annual Report Cover, a Note Book Cover for the HR Department and the all other Departments to achieve the goals of the organization. The department consists of following forinfrastructure the Director development General in the pertaining year 2019, to Participation Export Processing Booklets, Zones Banners, and Industrial Leaflets, IDParks Cards, managed Pen by BOI Investment Guide 2018 Brochure. This in-house designing of documents has resulted in functional sub units namely; Stores & Supplies Unit, Transport Unit, Maintenance Unit, Mail Unit and considerableBOI. savings of resources for the BOI.

• Media Coverage: Key functions of the department are; establishment of new Investment Zones, providing technical GeneralServices Administration Rendered by theto ensure Department smooth and efficient operation of the department. Theinputs Media for Departmentconstruction, organized operation, media maintenance coverage forand the determination following major of events:infrastructure facilities in • Handling the internal and external mail which will expedite the connectivity within and outside zones,- Opening advertising Ceremony vacant of lands Bingiriya on availability Export Processing for selection Zone. of investors for new investment projects the BOI. and assisting Competent Authority in transferring assets divested to the State. Mirijjawila EPZ. • Maintaining an un-interrupted process for providing Drinking Water, Tea, Janitorial Services, Services- The GroundRendered Breaking by the CeremonyDepartment of an Oil refinery and Cement manufacturing plant at and Telephone etc. - Ministrial visit at Rigit Tyre factory at Horana EPZ. The- TechnicalOpening Ceremony Services Department of a Leisure isproject mainly at responsible Bogambara. for; • A

• Advertisements:• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, ttending to the repairs and maintenance, general up-keep of the BOI office floors at the Head • Five (05)managed Newspaper by BOI. advertisements were published by the Media Department in 2019. Office. • ObtainingPreparation insur of documentsance coverage for forthe fixed payment assets. of electricity, water, telecommunication, transport • and other service providers.

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. • for project monitoring activities, assisting Zones for maintenance of vehicles. • Determination of infrastructure to be provided to the Zones. Procurement and disposal of vehicles, managing the vehicle fleet, providing transport facilities • • equipment, support services etc.) and handing over of operation of Zones to Zone Management Units. Procurement of goods and services required to the organization (stationery, office furniture & Undertaking initial development work of new investment zones, establishment of zone offices • • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. • MaintainingOperating the the two gener circuital stores bungalows of the athead Anuradhapura office. and Nuwara-Eliya.

• Progress of the Year 2019 establishment of an integrated solid waste management project/industrial park and recycle of • The management has decided to dispose uneconomical vehicles in successive stages. Arrangements Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. are made to procure new vehicles to the vehicle fleet. Following new vehicles were added to the fleet. • Providing technical support for infrastructure development work carried out by the existing • (fiveInstallation Motor Cars, of two six newDouble Water Cabs, Cooled eight Fire Package Engines Type and Airone Conditioning Water Bowser) Units in the BOI Server Export Processing Zones/Industrial Parks as and when requested. room at IT Department.

• Providing technical support for operation and maintenance of water supply, wastewater and • Supply, fabrication and installation of new Electrical Panel Boards and Electrical Wiring for the Server Room of Information Technology Department. solid waste management schemes of existing Export Processing Zones/Industrial Parks. • St • Inspection & making recommendations on technical aspects for the industrial parks which have Building by installation of a CCTV Camera System and Access Control Door System. eps were taken to strengthen the security of the Head Office of BOI at the World Trade Centre • Infrastructure facilities of many Departments at the WTC Building were improved. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation • In addition to the routine purchasing activities, the main procurements completed during through Land Allocation Committee followed by the approvals of Screening Committee and the year are as follows; Supply of Laboratory Chemicals & Equipment’s to the new quality Board of Directors of BOI. monitoring laboratory at Horana Export Processing Zone, Supply & Installation of 49 nos. of Personal Computers. • Im

• S provements to the existing BOI office at Bingiriya Export Processing Zone. at Air Cargo Village, Katunayake. upply and fixing of Office Furniture items and other improvements to ACVU and ACDU Offices Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 40 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 41 - 16. 8.Human Technical Resources Services Management Department Department

HumanThe Resources Technical department Services isDepartment the key department is responsible which hasfor the the responsibility overall control to manage of Action the total Plan for humaninfrastructure resources of thedevelopment Board by developing pertaining and to Export implementing Processing policies Zones and and programs Industrial that Parks contribute managed by to achieveBOI. organizational and employee goals. Its main functions are human resources planning, performance assessment, training and development, maintenance of discipline, maintenance of attendanceKey functions and leave of and the providing department employee are; establishment welfare services. of new Investment Zones, providing technical Servicesinputs Rendered for construction, by the Department operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects • Maintain an effective and viable human resource structure to achieve the overall corporate objectivesand assisting of the Competent organization. Authority in transferring assets divested to the State.

• DeServicesvelop a Renderedrobust and bytransparent the Department mechanism for identifying, developing and maintaining strong leadership/talent pool. The Technical Services Department is mainly responsible for; • Develop human capital by providing training opportunities to enhance knowledge, skills and attitudes• Overall of the control employees of Action in order Plan to achievefor infrastructure organization’s development objectives. pertaining to EPZs, IPs, etc, • Pro managed by BOI.

• •viding welfare benefits for employees.

ProgressStr•eamline ofPlanningIdentification the HRYear andactivities 2019 developmentof sites in orderfor new ofto newinvestmentenhance investment the zones/projects. efficiency zones. and effectiveness of HR practices. • Ne•w recruitmentsDetermination ; of infrastructure to be provided to the Zones. Executives 19 • Management Assistant (technological category) 10 and handing over of operation of Zones to Zone Management Units. PrimaryUndertaking Level (skilled initial category)development work of new01 investment zones, establishment of zone offices Absorbed• Providing into theassistance Permanent and technical Cadre inputs for special investment projects with regard to land matters and provision of infrastructure. Management Trainees 48 Contr• act Employees 87 establishment of an integrated solid waste management project/industrial park and recycle of CasualPreparation Employees of proposals, identification of 98 sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Promotions to higher grades ; Ex• ecutivesProviding technical support for infrastructure46 development work carried out by the existing ManagementExport Processing Assistant Zones/Industrial Parks as and49 when requested.

Primary• Providing Level technical support for operation and29 maintenance of water supply, wastewater and Staff Trainingssolid waste ; management schemes of existing Export Processing Zones/Industrial Parks. Foreign Trainings 30 • Inspection & making recommendations on technical aspects for the industrial parks which have Master Degree Programs 09 Local Training (Soft Skills) 217 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation In-House Training Programs 827 through Land Allocation Committee followed by the approvals of Screening Committee and TotalBoard of Directors of BOI. 1,083 • On the Job Training ; 62 Trainees from recognized Universities & Vocational Training Institutes were provided on the job training in various fields as a Corporate Social Responsibility (CSR) measure of the BOI Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 42 - - 27 - 16. 8.Human Technical Resources Services Management Department Department 17. Internal Audit Department

HumanThe Resources Technical department Services isDepartment the key department is responsible which hasfor the the responsibility overall control to manage of Action the total Plan for Internal Audit Department Focuses on ensuring value addition of the BOI functions and improvement humaninfrastructure resources of thedevelopment Board by developing pertaining and to Export implementing Processing policies Zones and and programs Industrial that Parks contribute managed by of its operations to accomplish the organizational objectives by way of a systematic, disciplined to achieveBOI. organizational and employee goals. Its main functions are human resources planning, approach to evaluate and improve the effectiveness of internal controls and corporate governance. performance assessment, training and development, maintenance of discipline, maintenance of Accordingly, the Internal Audit Department carried out the following functions; attendanceKey functions and leave of and the providing department employee are; establishment welfare services. of new Investment Zones, providing technical Servicesinputs Rendered for construction, by the Department operation, maintenance and determination of infrastructure facilities in • zones, advertising vacant lands on availability for selection of investors for new investment projects assets • Maintain an effective and viable human resource structure to achieve the overall corporate Verified the existence of assets and recommended proper safeguards for the protection of those objectivesand assisting of the Competent organization. Authority in transferring assets divested to the State. • Evaluated the adequacy of internal controls and recommended improvements thereon.

• DeServicesvelop a Renderedrobust and bytransparent the Department mechanism for identifying, developing and maintaining strong • Assessed compliance with laws, rules, regulations, policies, procedures, contractual obligations etc. leadership/talent pool. The Technical Services Department is mainly responsible for; • Reviewed operations/programmes to ascertain whether results were consistent with established • Develop human capital by providing training opportunities to enhance knowledge, skills and objectives and whether the operations/programs had been carried out as planned and were attitudes• Overall of the control employees of Action in order Plan to achievefor infrastructure organization’s development objectives. pertaining to EPZs, IPs, etc, • Pro managed by BOI. • performedInvestigated efficiently the reported and occurrenceseffectively of fraud, embezzlement, theft, waste, etc. • •viding welfare benefits for employees. • Assisted and provided advice for drafting guidelines and in designing work and process ProgressStr•eamline ofPlanningIdentification the HRYear andactivities 2019 developmentof sites in orderfor new ofto newinvestmentenhance investment the zones/projects. efficiency zones. and effectiveness of HR practices. instructions with a view of mitigating risk • Ne•w recruitmentsDetermination ; of infrastructure to be provided to the Zones. • Executives 19 • Reported to Audit Committee and convened Audit Committee meetings • Ensured reliability of financial and management reporting Management Assistant (technological category) 10 and handing over of operation of Zones to Zone Management Units. • Done on-time Statutory Reporting (Auditor General, COPE, Treasury and Line Ministry etc.) PrimaryUndertaking Level (skilled initial category)development work of new01 investment zones, establishment of zone offices In carrying out above functions, periodic audits were carried out covering the entire organization Absorbed• Providing into theassistance Permanent and technical Cadre inputs for special investment projects with regard to land matters and provision of infrastructure. to provide reasonable assurance of proper implementation of internal controls, adherence to Management Trainees 48 policies, procedures and regulatory requirements with a view of minimizing the risk exposure of the Contr• act Employees 87 organizational activities. establishment of an integrated solid waste management project/industrial park and recycle of CasualPreparation Employees of proposals, identification of 98 sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Promotions to higher grades ; functions and ensure fairness and reasonableness of activities / procedure while the systems and Accordingly, financial, construction and operational audits were carried out to evaluate routine Ex• ecutivesProviding technical support for infrastructure46 development work carried out by the existing compliance audits to evaluate internal controls & ensure regulatory compliance with a view of streamlining the procedures. Achievement of organizational goals/targets was evaluated through ManagementExport Processing Assistant Zones/Industrial Parks as and49 when requested. performance based audits. Primary• Providing Level technical support for operation and29 maintenance of water supply, wastewater and Staff Trainingssolid waste ; management schemes of existing Export Processing Zones/Industrial Parks. investigative audits based on management directives to detect misuse of public assets/malpractices. Foreign Trainings 30 • Inspection & making recommendations on technical aspects for the industrial parks which have In addition to above, Internal Audit spent a significant portion of its time and resources for special Master Degree Programs 09 Internal Audit Department coordinated the requirements of the Auditor General, Committee on Public Enterprises (COPE), Line Ministry and other external parties and made submissions to such Local Training (Soft Skills) 217 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation stakeholders based on statutory and other requirements. In-House Training Programs 827 through Land Allocation Committee followed by the approvals of Screening Committee and While carrying out the above activities, Internal Audit maintained independency by directly reporting TotalBoard of Directors of BOI. 1,083 to the Chairman/Director General and continuous coordination with the Audit Committee for • On the Job Training ; reviewing its activities. 62 Trainees from recognized Universities & Vocational Training Institutes were provided on the job training in various fields as a Corporate Social Responsibility (CSR) measure of the BOI Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 42 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 43 - 18. 8.Security Technical & Fire Services Department Department

BOI SecurityThe Technical & Fire DepartmentServices Department bears a fundamental is responsible role forin safetythe overall and security control of ofproperty Action andPlan for humaninfrastructure lives of BOI Zones development including pertaining enterprises to located Export therein. Processing The ZonesSecurity and & IndustrialFire Department Parks managedwould by facilitateBOI. the existing investors of BOI by deploying Security and Fire personnel and strengthening them as and when required. The assets of the BOI enterprises located inside the zones will be protectedKey functionsby the BOI of security the department as well as are;the Fireestablishment crew. of new Investment Zones, providing technical Servicesinputs Rendered for construction, by the Department operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects • Alland round assisting protection Competent throughout Authority the in day transferring and night assets by the divested Security to Pointsthe State. with CCTV Camera

Services Rendered by the Department • coverageIn the event and ofcoordination a special request with the of security an enterprise, officers provideof the enterprises assistance, exceeding the normal routineThe Technical Services Department is mainly responsible for;

• Receiving• Overall information control of by Action maintaining Plan foran Intelligenceinfrastructure Service development pertaining to EPZs, IPs, etc, • managed by BOI.

• Responding• to fire calls & emergency situations created within the enterprises located in Zones

• Fir•e prevention,PlanningIdentification and inspections developmentof sites for and new fireof newinvestment risk investment assessments zones/projects. zones. (overall) in the enterprises

• Conducting• Determination of fire drills of infrastructure & awareness programsto be provided to the to employees the Zones. of the enterprises

ProgressTraining• of the on Yearfire equipment 2019 handling for the factory staff The Departmentand handing conducted over training of operation courses of andZones Monthly to Zone Training Management Programs Units. for the security personnel Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land with a viewmatters to enhance and knowledge.provision of Training infrastructure. Programs for fire staff at Colombo Fire Brigade and other recommendedImplementation fire of institutions a special wereproject also to arranged eradicate to givethe drugthem amenace wider knowledge.spreading throughout the enterprises• located in BOI zones, with the assistance of the Sri Lanka Anti Narcotic Bureau, relevant police stations,establishment community of servicesan integrated and the solid security waste personnel management deployed project/industrial in all BOI zones. park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. assessments• Providing in the enterprises. technical support Also protection for infrastructure of assets and development properties ofwork the enterprisescarried out andby the being existing 24Security hours &on Fire call Departmentin the event ofhas any been incident mainly take focused place inon zones. fire prevention, inspections and fire risk Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 44 - - 27 - 18. 8.Security Technical & Fire Services Department Department 19. Recoveries Unit

BOI SecurityThe Technical & Fire DepartmentServices Department bears a fundamental is responsible role forin safetythe overall and security control of ofproperty Action andPlan for The Recoveries Unit of the BOI was established in September 2018 under a special requirement of humaninfrastructure lives of BOI Zones development including pertaining enterprises to located Export therein. Processing The ZonesSecurity and & IndustrialFire Department Parks managedwould by the Board of Directors. Main objective of this Unit is to collect the long outstanding dues from the facilitateBOI. the existing investors of BOI by deploying Security and Fire personnel and strengthening them as and when required. The assets of the BOI enterprises located inside the zones will be BOI since 2013, with more than Rs. 22 Mn. arrears to be collected. In collaboration with the Finance investors who are registered under the BOI Law. The Unit has identified 120 debtors who owe dues to protectedKey functionsby the BOI of security the department as well as are;the Fireestablishment crew. of new Investment Zones, providing technical and Monitoring Departments of the BOI, the Unit was able to collect Rs. 1.5 Mn. of overdue since its establishment in September 2018. Servicesinputs Rendered for construction, by the Department operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects Progress of the Year 2019 • Alland round assisting protection Competent throughout Authority the in day transferring and night assets by the divested Security to Pointsthe State. with CCTV Camera Number of letters Number of letters Services Rendered by the Department sent returned • In the event of a special request of an enterprise, provide assistance, exceeding the normal coverage and coordination with the security officers of the enterprises 1st Reminders 52 8 routine The Technical Services Department is mainly responsible for; 2nd Reminders 39 6 • Receiving• Overall information control of by Action maintaining Plan foran Intelligenceinfrastructure Service development pertaining to EPZs, IPs, etc, Final Reminders 39 1 managed by BOI. • Visited - 10 Companies Total recoveries from ten companies - Rs. 2,169,087 • • Responding to fire calls & emergency situations created within the enterprises located in Zones Number of reply letters received from companies - 10 Companies Agreed to settle - 3 Companies • Fire prevention, inspections and fire risk assessments (overall) in the enterprises • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Forwarded to Legal Department for legal actions - 36 Companies • Conducting• Determination of fire drills of infrastructure & awareness programsto be provided to the to employees the Zones. of the enterprises

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 44 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 45 - 20. Finance8. Technical Department Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by The Finance Department continued to serve the organization by maintaining proper financial / BOI. internal controls and advising the management on all financial matters. The maintenance of proper consistently in the preparation of Financial Statements which are being prepared in accordance accounting records pertaining to the financial transactions, applying appropriate accounting policies with KeySri Lankafunctions Accounting of the department Standards, are; coordination establishment of Procurementof new Investment Committee Zones, functionsproviding andtechnical establishmentinputs for of construction, proper credit operation, control systems maintenance are the andmain determination functions of the of Financeinfrastructure Department. facilities in The systemszones, advertising and procedures vacant are lands designed on availability to provide for selectionreasonable of assuranceinvestors for that new the investment assets of the projects Boardand are assistingsafeguarded. Competent Authority in transferring assets divested to the State.

The infrastructureServices Rendered facilities by of the the Department Finance Department have been strengthened with the objective of delivering advanced customer services through technology. BOI will be able to complete the The Technical Services Department is mainly responsible for; implementation of Oracle EBS System during the year 2020. A new customer service platform will be • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. supported to facilitate online financial services on real time basis. Financial• Performance - 2019

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.2019 2018 Change 2017 Financial Performance For the Year Ended 31 December (Rs.(Rs. Mn. Mn) ) (Rs. Mn.Mn) ) (%) (Rs.(Rs. Mn. Mn) ) • Determination of infrastructure to be provided to the Zones. Revenue 4,646 3,890 19.45 3,712 Total Operating• Expenses (3,773) (3,375) (11.81) (3,211) Operating Profitand handing over of operation of Zones to Zone Management 873 Units. 515 69.56 501 Undertaking initial development work of new investment zones, establishment of zone offices Finance Income 411 344 19.45 337 • Providing assistance and technical inputs for special investment projects with regard to land Finance Expense (11) (8) (37.73) (11) matters and provision of infrastructure. Surplus Before Taxation 1,274 851 49.58 827 Tax Expenses• (115) (92) 24.78 (71) Surplus Afterestablishment Taxation of an integrated solid waste management 1,158 project/industrial 759 52.59 park and 756 recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Other Comprehensivewater and Income wastewater systems within the Zones. (51) (11) (369.32) (25) Total Comprehensive Income 1,107 748 47.94 731 Financial• PositionProviding at thetechnical year End support (Rs.Mn) for infrastructure development work carried out by the existing Total AssetsExport Processing Zones/Industrial Parks as and when 44,158 requested. 43,269 2.06 42,412 Total Equity 42,685 41,631 2.53 41,005 • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 46 - - 27 - 20. Finance8. Technical Department Services Department Surplus Operating Expenses The Surplus after Tax of the Board has increased by The Technical Services Department is responsible for the overall control of Action Plan for Rs.3,773.37 Mn. for the year 2019 from Rs.3,374.91 Total Operating Expenses increased by 11.81% to infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by to Rs. 759.09 Mn. reported in 2018. Mn. in 2018.This was mainly due to the increase in The Finance Department continued to serve the organization by maintaining proper financial / 52.59% to Rs. 1,158.31 Mn. in year 2019, compared BOI. Surplus After Tax internal controls and advising the management on all financial matters. The maintenance of proper to Income Ratio of the Board has decreased from consistently in the preparation of Financial Statements which are being prepared in accordance LKR Mn. Personnel Expenses by 13.32% in 2019. The Cost accounting records pertaining to the financial transactions, applying appropriate accounting policies with KeySri Lankafunctions Accounting of the department Standards, are; coordination establishment of Procurementof new Investment Committee Zones, functionsproviding andtechnical in Operating Revenue. Depreciation Expenses for 82.33% in 2018 to 78.11% in 2019 due to increase establishmentinputs for of construction, proper credit operation, control systems maintenance are the andmain determination functions of the of Financeinfrastructure Department. facilities in previous year. The systemszones, advertising and procedures vacant are lands designed on availability to provide for selectionreasonable of assuranceinvestors for that new the investment assets of the projects the period has increased by 6% compared to the Boardand are assistingsafeguarded. Competent Authority in transferring assets divested to the State. Operating Expenses LKR Mn. The infrastructureServices Rendered facilities by of the the Department Finance Department have been strengthened with the objective of delivering advanced customer services through technology. BOI will be able to complete the The Technical Services Department is mainly responsible for; implementation of Oracle EBS System during the year 2020. A new customer service platform will be • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. supported to facilitate online financial services on real time basis. Financial• Performance - 2019 Revenue The growth in Total Operating Revenue is • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.2019 2018 Change 2017 Financial Performance For the Year Ended 31 December (Rs.(Rs. Mn. Mn) ) (Rs. Mn.Mn) ) (%) (Rs.(Rs. Mn. Mn) ) • Determination of infrastructure to be provided to the Zones. compared to the previous year. The Operating Revenue 4,646 3,890 19.45 3,712 RevenueRs.756.48 for Mn. the reflecting year under an review increase is Rs.4.646.09 of 19.45% Total Operating• Expenses (3,773) (3,375) (11.81) (3,211) Mn, whilst the Operating Revenue recorded for Operating Profitand handing over of operation of Zones to Zone Management 873 Units. 515 69.56 501 the year 2018 was Rs. 3,889.61 Mn. Revenue Contribution to Taxes Undertaking initial development work of new investment zones, establishment of zone offices from Ground Rent, Annual Fees, Import & Finance Income 411 344 19.45 337 • Providing assistance and technical inputs for special investment projects with regard to land Export Service Charges and Water are the main BOI contribution to indirect and direct taxes for Finance Expense (11) (8) (37.73) (11) contributors to the Board’s Revenue accounting the year amounted to Rs. 369.78 Mn. there is a matters and provision of infrastructure. Surplus Before Taxation 1,274 851 49.58 827 Disallowed VAT Input which is recognized as an Tax Expenses• (115) (92) 24.78 (71) The Interest Income earned by the Board has for 82.08% of the Total Operating Revenue. growth of 14.51% compared to the previous year. Surplus Afterestablishment Taxation of an integrated solid waste management 1,158 project/industrial 759 52.59 park and 756 recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the from Rs. 344.45 Mn. in year 2018. This is mainly of Rs. 17.32 Mn. compared to the previous year. Other Comprehensivewater and Income wastewater systems within the Zones. (51) (11) (369.32) (25) dueincreased to the by effective 19.45% management to Rs.411.44 ofMn. funds in 2019 and Totalexpense Direct has Taxesincreased of the by Board 9.45% comprise with a growth of Tax Total Comprehensive Income 1,107 748 47.94 731 increase in investment portfolio. Total Revenue on Interest Income. Financial• PositionProviding at thetechnical year End support (Rs.Mn) for infrastructure development work carried out by the existing of the Board has increased to Rs. 5,057.53 Mn. in Taxation Total AssetsExport Processing Zones/Industrial Parks as and when 44,158 requested. 43,269 2.06 42,412 2019 from Rs. 4,234.06 Mn. in 2018. LKR Mn. Total Equity 42,685 41,631 2.53 41,005 Operating Revenue • Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. LKR Mn.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 46 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 47 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 48 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

• 2019

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Financial Statements st • Determination of infrastructure to be provided to the Zones. For the year ended 31 December 2019 • and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 48 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by INCOME STATEMENT BOI.

FOR THE YEAR ENDED 31ST DECEMBER 2019 2018 Key functions of the department are; establishment of new Investment Zones, providing technical Rs. Rs. inputs for construction, operation, maintenance and determination of infrastructure facilities in Note zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State. Revenue 4 4,646,091,668 3,889,614,384

Services Rendered by the Department Less : Expenses The Technical Services Department is mainly responsible for; Operating Expenses 6 322,000,511 267,056,011 • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. Administrative Expenses 7 3,165,507,062 2,846,961,667 • Government Levies 8 254,568,577 230,591,904 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Other Expenses 9 31,290,988 30,301,325 • Determination of infrastructure to be provided to the Zones. Total Operating Expenses 3,773,367,139 3,374,910,907 • and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Results from Operating Activities 872,724,528 514,703,477 • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Finance Income 411,444,914 344,450,042 establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Finance Expenses 10,657,560 7,737,398 water and wastewater systems within the Zones. Net Finance Income 10 400,787,354 336,712,644 • Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. Surplus Before Taxation 1,273,511,883 851,416,121 • Providing technical support for operation and maintenance of water supply, wastewater and Tax Expenses 115,204,576 92,323,030 solid waste management schemes of existing Export Processing Zones/Industrial Parks. Surplus for the Period 1,158,307,307 759,093,091 • Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 51 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for COMPREHENSIVEinfrastructure development INCOME pertaining STATEMENT to Export Processing Zones and Industrial Parks managed by BOI.

Key functions of the department are; establishment of new Investment Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in FOR THE YEAR ENDED 31ST DECEMBER 2019 2018 zones, advertising vacant lands on availability for selection of investors for new investment projects Note Rs. Rs. and assisting Competent Authority in transferring assets divested to the State. Surplus for the Period 1,158,307,307 759,093,091 Services Rendered by the Department

The Technical Services Department is mainly responsible for; Other Comprehensive Income IFRS• OverallAdjustments control staff of loan Action interest Plan for infrastructure development 38,509,576 pertaining 35,794,021 to EPZs, IPs, etc, managed by BOI. Less : Defined benefit plan Actuarial (Gain)/Loss 21.1 51,499,585 10,973,058 • Staff Cost on Staff Loan (38,509,576) (35,794,021)

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

Total• Determination Comprehensive of Income infrastructure for the toperiod be provided to the 1,106,807,722 Zones. 748,120,033 • and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 52 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for COMPREHENSIVEinfrastructure development INCOME pertaining STATEMENT to Export Processing Zones and Industrial Parks managed by BOI.

Key functions of the department are; establishment of new Investment Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in FOR THE YEAR ENDED 31ST DECEMBER 2019 2018 zones, advertising vacant lands on availability for selection of investors for new investment projects Note Rs. Rs. and assisting Competent Authority in transferring assets divested to the State. Surplus for the Period 1,158,307,307 759,093,091 Services Rendered by the Department

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 52 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 53 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA STATEMENTThe Technical OF CHANGES Services IN Department EQUITY is responsible for the overall control of Action Plan for AS infrastructureAT 31ST DECEMBER development 2019 pertaining to Export Processing Zones and Industrial Parks managed by BOI. Accumulated Revaluation Total Fund Reserves Equity Key functions of the department are; establishment Rs. of new Investment Rs. Zones, providing Rs. technical Balanceinputs as atfor 01 stconstruction, January 2018 operation, maintenance 10,707,121,650 and determination 15,340,693,234 of infrastructure 26,047,814,884 facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects Surplus for the Period 748,120,033 - 748,120,033 and assisting Competent Authority in transferring assets divested to the State. Contribution to Consolidated Fund (500,000,000) - (500,000,000) Services Rendered by the Department Transactions for Treasury recognised directly in Equity (1,430,565) - (1,430,565) The Technical Services Department is mainly responsible for;

st Balance• asOverall at 31 Decembercontrol 2018of Action Plan for infrastructure 10,953,811,118 development 15,340,693,234 pertaining 26,294,504,352 to EPZs, IPs, etc, managed by BOI. Surplus for the Period 1,106,807,722 - 1,106,807,722 • Recognition of assets 1 248,192 - 248,192 Impact• on PlanningIdentification changes in andRevenue developmentof sites -2018 for 2 new of newinvestment investment zones/projects. (439,787) zones. - (439,787)

Impact• on Determination Receivable Adjustment of infrastructure directly deducted to be provided to the Zones. from Equity- Cashew Corporation of Sri Lanka 3 (209,600,000) - (209,600,000) Transactions• for Treasury recognised directly in Equity 4 and handing over of operation of Zones to Zone(5,365,655) Management Units. - (5,365,655) Undertaking initial development work of new investment zones, establishment of zone offices st Balance• asProviding at 31 December assistance 2019 and technical inputs 11,845,461,590 for special investment 15,340,693,234 projects 27,186,154,824 with regard to land matters and provision of infrastructure.

"Notes• to the Financial Statements " set out on pages 6 to 26 form an integral part of the Financial Statements. establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the 1 .Direct recognitionwater and of wastewater assets which systemsare not included within in thethe Fixed Zones. Assets Register. These Assets have been updated based on the Audit Examination of Fixed Assets • Providing technical support for infrastructure development work carried out by the existing 2. Impact Exporton changes Processing in estimation Zones/Industrial of revenue in previous Parks year as have and been when directly requested. deducted from Equity Account with out restating previous year Financial Statements. • Providing technical support for operation and maintenance of water supply, wastewater and

3.An amountsolid of Rswaste 209,600,000 management which is schemesreceivable ofon existingaccount of Export the Land Processing situated in Colombo Zones/Industrial 3 called Cashew Parks. Corporation Land has been directly deducted from Equity Account according to the prudence concept . • Inspection & making recommendations on technical aspects for the industrial parks which have 4.Expenditure incurred for Facilitation of Infrastructure for Mega Projects have been directly deducted from Equity Account . • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and

Board of Directors of BOI. 4

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 54 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTEMENT OF SRI LANKA STATEMENTThe Technical OF CHANGES Services IN Department EQUITY is responsible for the overall control of Action Plan for CASH FLOW STATEMENT AS infrastructureAT 31ST DECEMBER development 2019 pertaining to Export Processing Zones and Industrial Parks managed by BOI. Accumulated Revaluation Total Fund Reserves Equity Key functions of the department are; establishment Rs. of new Investment Rs. Zones, providing Rs. technical FOR THE YEAR ENDED 31ST DECEMBER 2019 2018 Rs ( Mn.) Rs ( Mn.) Balanceinputs as atfor 01 stconstruction, January 2018 operation, maintenance 10,707,121,650 and determination 15,340,693,234 of infrastructure 26,047,814,884 facilities in CASH FLOWS FROM OPERATING ACTIVITIES zones, advertising vacant lands on availability for selection of investors for new investment projects Surplus for the Period 748,120,033 - 748,120,033 Cash generated from operations (Note 24) 924.84 1036.10 and assisting Competent Authority in transferring assets divested to the State. Income Tax Paid (121.65) (82.61) Contribution to Consolidated Fund (500,000,000) - (500,000,000) Payment of Retirement Benefit Obligation (37.94) (46.94) Services Rendered by the Department Gratuity - re-adjustment 1.27 0.48 Transactions for Treasury recognised directly in Equity (1,430,565) - (1,430,565) Deferred Revenue Received 408.75 562.04 The Technical Services Department is mainly responsible for; Grant Received - 18.15 st Net cash inflows/(out flows) from operating activities 1,175.27 1,487.21 Balance• asOverall at 31 Decembercontrol 2018of Action Plan for infrastructure 10,953,811,118 development 15,340,693,234 pertaining 26,294,504,352 to EPZs, IPs, etc, managed by BOI. CASH FLOWS FROM INVESTING ACTIVITIES Surplus for the Period 1,106,807,722 - 1,106,807,722 Investment Income Received 411.13 368.12 Staff Loan & Financial Assistance (43.08) (50.78) • 1 Recognition of assets 248,192 - 248,192 Purchase of Fixed Assets (153.55) (75.49) 2 Impact• on PlanningIdentification changes in andRevenue developmentof sites -2018 for new of newinvestment investment zones/projects. (439,787) zones. - (439,787) Proceeds from sale of Fixed Assets 18.94 11.03 Capital Work in Progress (791.58) (620.91) Impact• on Determination Receivable Adjustment of infrastructure directly deducted to be provided to the Zones. Deferred Expenditure (0.31) (1.19) 3 from Equity- Cashew Corporation of Sri Lanka (209,600,000) - (209,600,000) Funds Remitted to Society for Promotion of Japanese Diplomacy - (14.63) Transactions• for Treasury recognised directly in Net cash inflows/(outflows) from investing activities (558.45) (383.84) Equity 4 and handing over of operation of Zones to Zone(5,365,655) Management Units. - (5,365,655) Undertaking initial development work of new investment zones, establishment of zone offices st CASH FLOWS FROM FINANCING ACTIVITIES Balance• asProviding at 31 December assistance 2019 and technical inputs 11,845,461,590 for special investment 15,340,693,234 projects 27,186,154,824 with regard to land Lease Installments Paid (29.45) (20.77) matters and provision of infrastructure. Fund Transfer to Treasury - (500.00) Net cash flows/(outflows) from financing activities (29.45) (520.77) "Notes• to the Financial Statements " set out on pages 6 to 26 form an integral part of the Financial Statements. Net Increase/ (Decrease) in Cash & Cash Equivalents 587.37 582.59 establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Cash & Cash Equivalents at beginning of the year 3,750.85 3,168.26 1 .Direct recognitionwater and of wastewater assets which systemsare not included within in thethe Fixed Zones. Assets Register. These Assets have been updated Cash & Cash Equivalents at end of the year 4,338.22 3,750.85 based on the Audit Examination of Fixed Assets • Providing technical support for infrastructure development work carried out by the existing 2. Impact Exporton changes Processing in estimation Zones/Industrial of revenue in previous Parks year as have and been when directly requested. deducted from Equity Account with out restating previous year Financial Statements. • Providing technical support for operation and maintenance of water supply, wastewater and

Board of Directors of BOI. 4 5

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 54 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 55 -

8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for

NinfrastructureOTES TO THE development FINANCIAL pertaining STATEMENTS to Export Processing Zones and Industrial Parks managed by BOI.

1. Reporting Entity Key functions of the department are; establishment of new Investment Zones, providing technical

inputs Boardfor construction, of Investment operation, of Sri Lanka maintenance is established and under determination Board of Investmentof infrastructure of Sri facilities in zones, Lankaadvertising Law, Novacant 4 of lands1978. Theon availability registered office for selection and the principal of investors place for of neworganizati investmenton projects is located at West Tower, WTC, Echelon Square, Colombo 01. and assisting Competent Authority in transferring assets divested to the State. 2. Basis of Preparation Services Rendered by the Department

2.1The TechnicalStatement Services of Compliance Department is mainly responsible for;

2.2 Use of Estimates, Judgements and Assumptions • Determination of infrastructure to be provided to the Zones.

The preparation of the Board’s Financial Statements requires Management to make • judgements, estimates and assumptions that affect the reported amounts of revenues, andexpenses, handing assets over ofand operation liabilities of and Zones the to disclosure Zone Management of contingent Units. liabilities, at the Undertaking initial development work of new investment zones, establishment of zone offices reporting date. The estimates and underlying assumptions are reviewed on an ongoing • Providingbasis. However, assistance uncertainty and technical about theseinputs assumptions for special and investment estimates projects could result with inregard to land mattersoutcomes and that provision could require of infrastructure. a material adjustment to the carrying amount of the asset or liability affected in the future. • 2.3 Going Concern establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the waterWhen and preparing wastewater the Financial systems S withintatements the the Zones. Management has assessed the ability of the Board to continue as a going concern. The Management has a reasonable • Providingexpectation technical that the supportBoard has for adequate infrastructure resources development to continue in workoperational carried existence out by the existing for the foreseeable future. The Board does not foresee a need for liquidation or Export Processing Zones/Industrial Parks as and when requested. cessation of operations, taking into account all available information about the future. Accordingly, the Board continues to adopt the going concern basis in preparing the • Providing technical support for operation and maintenance of water supply, wastewater and Financial Statements. solid waste management schemes of existing Export Processing Zones/Industrial Parks. 2.4 Functional and Presentation Currency • In spection & making recommendations on technical aspects for the industrial parks which have The functional currency of the Board is determined to be Sri Lankan Rupees and the Financial Statements are also presented in Sri Lankan Rupees. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation

through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 56 - - 27 -

8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for

NinfrastructureOTES TO THE development FINANCIAL pertaining STATEMENTS to Export Processing Zones and Industrial Parks managed by NOTES TO THE FINANCIAL STATEMENTS (Contd.) BOI.

1. Reporting Entity 3 Significant Accounting Policies Key functions of the department are; establishment of new Investment Zones, providing technical inputs Boardfor construction, of Investment operation, of Sri Lanka maintenance is established and under determination Board of Investmentof infrastructure of Sri facilities in 3.1 Financial Assets zones, Lankaadvertising Law, Novacant 4 of lands1978. Theon availability registered office for selection and the principal of investors place for of neworganizati investmenton projects is located at West Tower, WTC, Echelon Square, Colombo 01. The Board classifies its financial assets in to loans and receivables and financial assets and assisting Competent Authority in transferring assets divested to the State. measured at fair value in investment. The classification is determined by Management at 2. Basis of Preparation initial recognition and depends on the purpose for which the investments were done and Services Rendered by the Department acquired.

2.1The TechnicalStatement Services of Compliance Department is mainly responsible for; (a) Classification

• OverallThe Statement control ofof F inancialAction PlanPosition, for Comprehensiveinfrastructure Income,development Changes pertaining in Equity, Cashto EPZs, IPs, etc, (i) Loans and Receivables Flow and Notes together with summary of significant accounting policies of the Board managed by BOI. have been prepared in accordance with Sri Lanka Accounting Standards (SLFRS) Loans and Receivables are non-derivative financial assets with fixed or determinable issued by The Institute of Chartered Accountants of Sri Lanka which represent • payments that are not quoted in an active market. Receivables arising from ordinary International Financial Reporting Standards issued by the International Accounting transactions are also classified in this category and are reviewed for impairment. Standard Board. • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. (ii) Financial Assets Measured at Fair Value- (Held-to- maturity Financial Assets) 2.2 Use of Estimates, Judgements and Assumptions • Determination of infrastructure to be provided to the Zones. Financial assets measured at fair value are non-derivative financial assets with fixed or The preparation of the Board’s Financial Statements requires Management to make • determinable payments and fixed maturities that the Board’s Management has the judgements, estimates and assumptions that affect the reported amounts of revenues, positive intention and ability to hold to maturity. These financial assets are classified at andexpenses, handing assets over ofand operation liabilities of and Zones the to disclosure Zone Management of contingent Units. liabilities, at the Undertaking initial development work of new investment zones, establishment of zone offices fair value in the Statement of Income on recognition. reporting date. The estimates and underlying assumptions are reviewed on an ongoing • Providingbasis. However, assistance uncertainty and technical about theseinputs assumptions for special and investment estimates projects could result with inregard to land (b) Impairment mattersoutcomes and that provision could require of infrastructure. a material adjustment to the carrying amount of the asset or liability affected in the future. Financial assets are reviewed at each Statement of Financial Position date, to determine • whether there is any indication of impairment. If any such indication exists the assets 2.3 Going Concern establishment of an integrated solid waste management project/industrial park and recycle of recoverable amount is estimated. Preparation of proposals, identification of sites, obtaining necessary approvals for the waterWhen and preparing wastewater the Financial systems S withintatements the the Zones. Management has assessed the ability of An impairment loss is recognized whenever the carrying amount of an assets or it’s the Board to continue as a going concern. The Management has a reasonable cash generating units exceed its recoverable amount. Impairment losses are recognized • Providingexpectation technical that the supportBoard has for adequate infrastructure resources development to continue in workoperational carried existence out by the existing in the income statement. for the foreseeable future. The Board does not foresee a need for liquidation or Export Processing Zones/Industrial Parks as and when requested. cessation of operations, taking into account all available information about the future. (c) De-recognition Accordingly, the Board continues to adopt the going concern basis in preparing the • Providing technical support for operation and maintenance of water supply, wastewater and Financial Statements. Impairment losses recognized in prior period are assessed at each reporting date for any solid waste management schemes of existing Export Processing Zones/Industrial Parks. indications that the loss has decreased or no longer exists. An impairment loss is de- 2.4 Functional and Presentation Currency recognized if there has been a change in the estimates used to determine the recoverable • In spection & making recommendations on technical aspects for the industrial parks which have amount. The functional currency of the Board is determined to be Sri Lankan Rupees and the Financial Statements are also presented in Sri Lankan Rupees. 3.2 Property, Plant and Equipment • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and (a) Cost

Board of Directors of BOI. Value of property plant and equipment carried at valuation less accumulated depreciation as at 1st January 2011 have been considered being the deemed cost as at 1st January 2011 as per SLFRS 1.

6 7

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 56 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 57 -

8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA

The Technical Services Department is responsible for the overall control of Action Plan for infrastructureNOTES TO THE development FINANCIAL pertaining STATEMENTS to Export (ProcessingContd.) Zones and Industrial Parks managed by BOI.

(b) Depreciation Key functions of the department are; establishment of new Investment Zones, providing technical inputs Dforepreciation construction, is calculated operation, on the maintenance straight-line andbasis determination on the cost/ valuation of infrastructure of all items offacilities in zones, advertisingProperty, Plant vacant and landsEquipment on availability and is recognized for selection in the ofIncome investors Statement. for new Depreciation investment projects is charged on fixed assets in the year of purchase when it is available for use. Property and assistingPlant and Competent Equipment Authority have been in transferring depreciated assetsannually divested over the to theuseful State. lives. Freehold Land is not depreciated. Services Rendered by the Department Class of Assets Depreciation percentage Period The Technical Services Department is mainly per responsible annum for; (years)

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managedBuildings by & BOI. Structures 5 20 Plant and Machinery 10 10 • Fixtures & Fittings 10 10 Office Furniture & Equipment 10 10 • PlanningIdentificationComputers and developmentof sites for new of newinvestment investment zones/projects. 33.33 zones. 3 Motor Vehicles 20 5 • Determination of infrastructure to be provided to the Zones. (c) De-recognition • andItems handing of property over of and operation equipment of Zones are de to- recognisedZone Management upon disposal Units. or when no future Undertakingeconomic benefits initial developmentare expected fromwork its of use. new Gain investment or loss arisingzones, oestablishmentn de-recognitio ofn zoneof offices • Providingan item ofassistance Property, andPlant technical and Equipment inputs foris determined special investment as the difference projects between with regard the to land matterssales proceed and provision and the of carrying infrastructure. amount of the asset and is recognized in the Income Statement. • (d) Capital Work in Progress establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the waterCapital and expenses wastewater incurred systems during within the year the Zones.which are not completed as at the Statement of Financial Position date, are shown as Capital Work in Progress, whilst the capital • Providingassets which technical have supportbeen completed for infrastructure during the developmentyear and available work forcarried use haveout bybeen the existing Exporttransferred Processing to Property Zones/Industrial, Plant and Equipmen Parks ast. and when requested.

• Providing(e) Leasehold technical Assetssupport for operation and maintenance of water supply, wastewater and

solid waste management schemes of existing Export Processing Zones/Industrial Parks. Assets acquired under financial liabilities are capitalized & included under the category of leasehold motor vehicles with recognition of a corresponding financial liability. • Inspection & making recommendations on technical aspects for the industrial parks which have Assets held under financial liabilities are depreciated over their period of use.

(f) Structures • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation throughFair Values Land ofAllocation Structures Committee have been followed assessed byunder the sevenapprovals main ofsub Screening categories. Committee All and items and components connected with each main sub category are considered as Board of Directors of BOI. forming part of one unit.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 58 - - 27 -

8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

(b) Depreciation 3.3 (a) Investment Properties Key functions of the department are; establishment of new Investment Zones, providing technical inputs Dforepreciation construction, is calculated operation, on the maintenance straight-line andbasis determination on the cost/ valuation of infrastructure of all items offacilities in Investment Properties are stated at cost prevailed as of the date of classifying the said zones, advertisingProperty, Plant vacant and landsEquipment on availability and is recognized for selection in the ofIncome investors Statement. for new Depreciation investment projects assets under Investment Properties. is charged on fixed assets in the year of purchase when it is available for use. Property and assistingPlant and Competent Equipment Authority have been in transferring depreciated assetsannually divested over the to theuseful State. lives. Freehold Investment Property is recognized if it is probable, that future economic benefits that are Land is not depreciated. associated with the Investment Property will flow to the Board and cost of the Services Rendered by the Department Investment Property can be reliably measured. Properties held to earn rental income Class of Assets Depreciation percentage Period have been classified as Investment Property. The Technical Services Department is mainly per responsible annum for; (years) (b) Depreciation (Amortization) • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managedBuildings by & BOI. Structures 5 20 Depreciation is calculated on the straight-line basis on the cost/valuation of the Plant and Machinery 10 10 Investment Property other than land. Investment Property have been depreciated • Fixtures & Fittings 10 10 annually over the useful lives as follows. Office Furniture & Equipment 10 10 • PlanningIdentificationComputers and developmentof sites for new of newinvestment investment zones/projects. 33.33 zones. 3 Class of Assets Depreciation Percentage Period Motor Vehicles 20 5 per annum (years) • Determination of infrastructure to be provided to the Zones. (c) De-recognition Buildings 5 20 • andItems handing of property over of and operation equipment of Zones are de to- recognisedZone Management upon disposal Units. or when no future 3.4 Inventories Undertakingeconomic benefits initial developmentare expected fromwork its of use. new Gain investment or loss arisingzones, oestablishmentn de-recognitio ofn zoneof offices • Providingan item ofassistance Property, andPlant technical and Equipment inputs foris determined special investment as the difference projects between with regard the to land All inventories have been valued at lower of Cost or Net Realizable Value. Cost is matterssales proceed and provision and the of carrying infrastructure. amount of the asset and is recognized in the Income determined based on First in First Out basis. (FIFO) Statement. • 3.5 Other Assets (d) Capital Work in Progress establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Other assets include Other Debtors, Receivables, Advances, Deposits and Prepayments. waterCapital and expenses wastewater incurred systems during within the year the Zones.which are not completed as at the Statement of Financial Position date, are shown as Capital Work in Progress, whilst the capital (a) Advances, Deposits, Prepaid Expenditure • Providingassets which technical have supportbeen completed for infrastructure during the developmentyear and available work forcarried use haveout bybeen the existing Exporttransferred Processing to Property Zones/Industrial, Plant and Equipmen Parks ast. and when requested. Expenditure which is deemed to have a benefit or relationship to more than one financial year is classified as advances, deposits and prepaid expenditure. Such • Providing(e) Leasehold technical Assetssupport for operation and maintenance of water supply, wastewater and expenditure is written off over the period, to which it relates, on a time proportion basis. solid waste management schemes of existing Export Processing Zones/Industrial Parks. Assets acquired under financial liabilities are capitalized & included under the category (b) Other Debtors of leasehold motor vehicles with recognition of a corresponding financial liability. • Inspection & making recommendations on technical aspects for the industrial parks which have Assets held under financial liabilities are depreciated over their period of use. Other debtors are recognized at cost less impairment loss. A total of Rs.507,650.00 is reflected under Other Receivables as cash shortage at Head office. The Court Case is (f) Structures still pending. • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation throughFair Values Land ofAllocation Structures Committee have been followed assessed byunder the sevenapprovals main ofsub Screening categories. Committee All and 3.6 Cash and Cash Equivalents items and components connected with each main sub category are considered as Board of Directors of BOI. forming part of one unit. Cash and Cash Equivalents comprise cash in hand and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. These are held for the purpose of meeting short-term cash commitments. 8 9

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 58 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 59 -

8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA

NOTESThe TOTechnical THE FINANCIAL Services Department STATEMENTS is responsible (Contd.) for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. Cash Flow Statement

KeyThe functions Cash Flow of the Statement department has beenare; establishmentprepared by using of newindirect Investment method inZones, accordance providing technical inputswith for the construction,Sri Lanka Accounting operation, Standard maintenance No. 7 (LKAS) and determination on Cash Flow S oftatements. infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects 3.7 Employee Benefits and assisting Competent Authority in transferring assets divested to the State. (a) Defined Contribution Plans Services Rendered by the Department Employees are eligible for Employees’ Provident Fund (EPF) Contributions Theand Technical Employees’ Services Trust Department Fund (ETF) is Contributions mainly responsible in line with for; the respective statutes and regulations. The Board pays fixed contributions of gross emoluments of employees to •Employees’ Overall control Provident of Action Fund andPlan Empl for oyees’infrastructure Trust Fund development and will have pertaining no legal to or EPZs, IPs, etc, constructivemanaged byobligation BOI. to pay further amounts.

•(b) Defined benefit plans

•Defined PlanningIdentification benefit and plansdevelopmentof sites are for post new- ofemployment newinvestment investment plans zones/projects. other zones. than defined contribution plans. Board is liable to pay Gratuity in terms of the Payment of Gratuity Act No. 12 of 1983. •A Determinationprovision for theof infrastructure obligations under to be the provided Act is todetermined the Zones. based on an actuarial valuation. • 3.8 Liabilitiesand handing & Provision over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices •Liabilities Providing & assistance Provisions andare technicalrecognized inputs in the for Statement special investmentof Financial projects Position withwhen regard to land therematters is a leandgal provision/constructive of infrastructure. obligation at present, as a result of past events where the settlement is expected to result in an outflow of resources embodying economic •benefits.

establishment of an integrated solid waste management project/industrial park and recycle of ObligationsPreparation payable of proposals, on demand identification of the creditor of or sites, within obtaining one year necessaryof Statement approvals of for the Financiwateral and Position wastewater date are systems treated within as current the Zones.liabilities in the Statement of Financial Position. Liabilities payable after one year from the Statement of Financial Position are •treated Providing as non technical-current liabilities support infor the infrastructure Statement of Financial development Position. work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. Other Liabilities • Providing technical support for operation and maintenance of water supply, wastewater and Other liabilities include other creditors including Accrued Expenditure. These are stated solid waste management schemes of existing Export Processing Zones/Industrial Parks. at their historical value which is deemed to be their fair value.

• Inspection & making recommendations on technical aspects for the industrial parks which have 3.9 Income Recognition

(a) Revenue • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Revenuethrough from Land services Allocation/fees isCommittee measured atfollowed fair value by ofthe the approvals consideration of Screening received orCommittee and receivable. License Fee and Agreement Processing Fees are recognized on cash basis. Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 60 - - 27 -

8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

The Technical Services Department is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS (Contd.) NOTES TO THE FINANCIAL STATEMENTS (Contd.) infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. Cash Flow Statement (b) Interest Income

Key functions of the department are; establishment of new Investment Zones, providing technical The Cash Flow Statement has been prepared by using indirect method in accordance Interest income for all interest-bearing financial instruments including financial inputswith for the construction,Sri Lanka Accounting operation, Standard maintenance No. 7 (LKAS) and determination on Cash Flow S oftatements. infrastructure facilities in instruments measured at fair value through profit or loss, are recognized within zones, advertising vacant lands on availability for selection of investors for new investment projects ‘Finance Income’ in the Income Statement. 3.7 Employee Benefits and assisting Competent Authority in transferring assets divested to the State. (c) Other Income (a) Defined Contribution Plans Services Rendered by the Department Other income is recognized on an accrual basis. Employees are eligible for Employees’ Provident Fund (EPF) Contributions The Technical Services Department is mainly responsible for; and Employees’ Trust Fund (ETF) Contributions in line with the respective statutes and 3.10 Expenses regulations. The Board pays fixed contributions of gross emoluments of employees to • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Employees’ Provident Fund and Employees’ Trust Fund and will have no legal or Expenses Recognition constructivemanaged byobligation BOI. to pay further amounts. (a) Revenue Expenditure •(b) Defined benefit plans All expenses are measured at fair value of the consideration given and recognized in the •Defined PlanningIdentification benefit and plansdevelopmentof sites are for post new- ofemployment newinvestment investment plans zones/projects. other zones. than defined contribution plans. period to which those expenses relate. The surplus earned by the Board as shown in the Board is liable to pay Gratuity in terms of the Payment of Gratuity Act No. 12 of 1983. Income Statement is after providing for all known liabilities and for depreciation of •A Determinationprovision for theof infrastructure obligations under to be the provided Act is todetermined the Zones. based on an actuarial Property, Plant and Equipment. valuation. • (b) Capital Expenditure 3.8 Liabilitiesand handing & Provision over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Expenditure incurred for the purpose of extending or improving assets of a permanent •Liabilities Providing & assistance Provisions andare technicalrecognized inputs in the for Statement special investmentof Financial projects Position withwhen regard to land nature by means to carry on the organization or for the purpose of increasing the therematters is a leandgal provision/constructive of infrastructure. obligation at present, as a result of past events where the service/product capacity of the organization has been treated as Capital Expenditure. settlement is expected to result in an outflow of resources embodying economic •benefits. 3.11 Taxation establishment of an integrated solid waste management project/industrial park and recycle of ObligationsPreparation payable of proposals, on demand identification of the creditor of or sites, within obtaining one year necessaryof Statement approvals of for the Income Tax is based on the elements of interest income as reported in the Financial Financiwateral and Position wastewater date are systems treated within as current the Zones.liabilities in the Statement of Financial Statements and computed in accordance with Provisions of Inland Revenue Act No.24 Position. Liabilities payable after one year from the Statement of Financial Position are of 2017 and amendments thereto. •treated Providing as non technical-current liabilities support infor the infrastructure Statement of Financial development Position. work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. 3.12 Changes in Accounting Policies Other Liabilities • Providing technical support for operation and maintenance of water supply, wastewater and Property Plant & Equipment were previously not depreciated in the year of purchase and Other liabilities include other creditors including Accrued Expenditure. These are stated solid waste management schemes of existing Export Processing Zones/Industrial Parks. depreciation was charged in full in the year of disposal. This has been changed with at their historical value which is deemed to be their fair value. effect from 01st January 2019 and depreciation is charged in the year of purchase when

• Inspection & making recommendations on technical aspects for the industrial parks which have it’s available for use. 3.9 Income Recognition

(a) Revenue • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation . Revenuethrough from Land services Allocation/fees isCommittee measured atfollowed fair value by ofthe the approvals consideration of Screening received orCommittee and receivable. License Fee and Agreement Processing Fees are recognized on cash basis. Board of Directors of BOI.

11 10

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 60 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 61 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

ST FORKey THE functions YEAR ENDED of the 31department DECEMBER are; establishment of new2019 Investment Zones,2018 providing technical Rs. Rs. inputs for construction, operation, maintenance and determination of infrastructure facilities in 4 Revenue zones, advertising vacant lands on availability for selection of investors for new investment projects andGround assisting Rent Competent Authority in transferring assets 1,193,019,780 divested to the State. 881,392,643 Annual Fees 830,059,523 702,134,793 ServicesImport/Export Rendered Service by Charges the Department 1,428,114,025 1,148,966,443 Net Income from Supply of Water (Note 4.1) 362,177,762 419,735,183 TheLand Technical Premium Services Department is mainly responsible for;218,799,859 213,007,727 Rent Income 147,877,915 118,985,459 •License Overall Fee controlSec.-16 Enterprisesof Action Plan for infrastructure development 35,751,215 pertaining 29,564,566 to EPZs, IPs, etc, Salemanaged of Entry byPermits BOI. 231,082,682 191,634,952 Agreement Processing Fees 57,738,308 46,752,931 •Income from Housing & Other Projects 19,846,677 17,802,442 Miscellaneous Income 121,623,922 119,637,245 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. 4,646,091,668 3,889,614,384

• Determination of infrastructure to be provided to the Zones. 4.1 Net Income from Supply of Water for Enterprises • Incomeand fromhanding Water over Supply of operation of Zones to Zone Management 1,344,160,694 Units. 1,384,650,022 RelatedUndertaking Cost on Water initial Supply development work of new investment (981,982,932) zones, establishment (964,914,838) of zone offices Net• Providing Income from assistance Supply of and Water technical inputs for special 362,177,762 investment projects 419,735,183 with regard to land matters and provision of infrastructure.

5 Surplus• from Operations establishment of an integrated solid waste management project/industrial park and recycle of SurplusPreparation from Operations of proposals, is stated after identification charging/(crediting of sites, ) all expenses obtaining including necessary the following. approvals for the water and wastewater systems within the Zones.

Operating• Providing Expenses technical (Note 6)support for infrastructure development 322,000,511 work carried 267,056,011 out by the existing AdministrativeExport Processing Expenses Zones/Industrial (Note 7) Parks as and when 3,165,507,062 requested. 2,846,961,667 Government Levies (Note 8) 254,568,577 230,591,904 Other• Providing Expenses technical (Note 9) support for operation and maintenance 31,290,988 of water supply,30,301,325 wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

6 Operating• Inspection Expenses & making recommendations on technical aspects for the industrial parks which have Investment Promotion Expenses 52,824,668 29,005,705 Maintenance of Zones 149,880,895 124,609,414 Light & Power 49,031,390 48,292,995 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Security Services 66,613,346 61,879,967 Welfarethrough Expenses Land to Allocation Zone Employees Committee followed by the 3,650,211approvals of Screening 3,267,931 Committee and Board of Directors of BOI. 322,000,511 267,056,011

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 62 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. ST ST FOR THE YEAR ENDED 31 DECEMBER 2019 2018 FORKey THE functions YEAR ENDED of the 31department DECEMBER are; establishment of new2019 Investment Zones,2018 providing technical Rs. Rs. Rs. Rs. inputs for construction, operation, maintenance and determination of infrastructure facilities in 7 Administrative Expenses 4 Revenue Personnel Cost (Note 7.1) 1,874,453,119 1,682,316,947 zones, advertising vacant lands on availability for selection of investors for new investment projects Staff Welfare Expenses 291,602,225 229,210,751 andGround assisting Rent Competent Authority in transferring assets 1,193,019,780 divested to the State. 881,392,643 Annual Fees 830,059,523 702,134,793 Printing & Stationery 27,711,635 25,691,436 ServicesImport/Export Rendered Service by Charges the Department 1,428,114,025 1,148,966,443 Maintenance of P/M Computer & Office Equipment's. 47,720,883 43,227,341 Net Income from Supply of Water (Note 4.1) 362,177,762 419,735,183 Building Maintenance 84,584,415 81,054,756 TheLand Technical Premium Services Department is mainly responsible for;218,799,859 213,007,727 Transport Related Expenses 118,132,411 101,303,145 Rent Income 147,877,915 118,985,459 Office Rent & Verification Unit Rent 75,077,753 67,041,126 •License Overall Fee controlSec.-16 Enterprisesof Action Plan for infrastructure development 35,751,215 pertaining 29,564,566 to EPZs, IPs, etc, Press Notifications 7,806,512 7,976,180 Salemanaged of Entry byPermits BOI. 231,082,682 191,634,952 Water Consumption 5,003,590 4,898,417 Agreement Processing Fees 57,738,308 46,752,931 Communication Expenses 35,377,098 36,584,507 •Income from Housing & Other Projects 19,846,677 17,802,442 Municipality Rates 15,907,708 15,912,708 Miscellaneous Income 121,623,922 119,637,245 Staff Training 14,707,650 12,443,929 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. 4,646,091,668 3,889,614,384 Legal & Professional Charges 4,886,126 11,281,562 Compensation for Legal Obligations 1,300,968 - • Determination of infrastructure to be provided to the Zones. Travelling & Subsistence 6,254,974 5,583,979 4.1 Net Income from Supply of Water for Enterprises Audit Fees 2,376,000 3,328,000 • Impairment on Debtors 25,041,516 21,419,229 Incomeand fromhanding Water over Supply of operation of Zones to Zone Management 1,344,160,694 Units. 1,384,650,022 Undertaking initial development work of new investment zones, establishment of zone offices Depreciation 527,562,480 497,687,654 Related Cost on Water Supply (981,982,932) (964,914,838) 3,165,507,062 2,846,961,667 Net• Providing Income from assistance Supply of and Water technical inputs for special 362,177,762 investment projects 419,735,183 with regard to land matters and provision of infrastructure. 7.1 Personnel Cost Board Members Fee 810,000 900,000 5 Surplus from Operations • Chairman / Director General 12,015,533 10,086,667 establishment of an integrated solid waste management project/industrial park and recycle of Salaries & Wages - Executive Staff 574,408,299 500,803,893 SurplusPreparation from Operations of proposals, is stated after identification charging/(crediting of sites, ) all expenses obtaining including necessary the following. approvals for the water and wastewater systems within the Zones. Salaries & Wages - Clerical & Allied Staff 105,363,890 102,415,301 Salaries & Wages - Security Staff 60,872,496 54,368,727 Operating• Providing Expenses technical (Note 6)support for infrastructure development 322,000,511 work carried 267,056,011 out by the existing Salaries & Wages - Minor Staff 128,472,475 124,239,899 AdministrativeExport Processing Expenses Zones/Industrial (Note 7) Parks as and when 3,165,507,062 requested. 2,846,961,667 Overtime 167,353,921 147,753,776 Government Levies (Note 8) 254,568,577 230,591,904 Leave Encashment 73,697,846 68,001,501 Other• Providing Expenses technical (Note 9) support for operation and maintenance 31,290,988 of water supply,30,301,325 wastewater and Bonus 121,391,628 92,669,480 solid waste management schemes of existing Export Processing Zones/Industrial Parks. Provision for Retirement Benefit Obligation 15,065,355 13,965,287 Contribution to Employee's Provident Fund 125,379,459 111,331,049 6 Operating• Inspection Expenses & making recommendations on technical aspects for the industrial parks which have Contribution to Employee's Trust Fund 25,075,892 22,266,210 Investment Promotion Expenses 52,824,668 29,005,705 Other Staff Cost 464,546,326 433,515,159 Maintenance of Zones 149,880,895 124,609,414 1,874,453,119 1,682,316,947 Light & Power 49,031,390 48,292,995 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Security Services 66,613,346 61,879,967 Welfarethrough Expenses Land to Allocation Zone Employees Committee followed by the 3,650,211approvals of Screening 3,267,931 Committee and Board of Directors of BOI. 322,000,511 267,056,011

12 13

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 62 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 63 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTESinfrastructure TO THE developmentFINANCIAL pertainingSTATEMENTS to Export Processing Zones and Industrial Parks managed by BOI. FOR THE YEAR ENDED 31ST DECEMBER 2019 2018 Key functions of the department are; establishment of new Investment Rs. Zones, providing Rs. technical

8inputsGovernment for construction, Levies operation, maintenance and determination of infrastructure facilities in zones,Stamp advertising Duty vacant lands on availability for selection of investors 1,436,880 for new investment 372,675 projects andNation assisting Building Competent Tax Authority in transferring assets divested 52,581,685 to the State. 46,988,831 Value Added Tax - Disallowed VAT Input 200,550,012 183,230,398 Services Rendered by the Department 254,568,577 230,591,904

The Technical Services Department is mainly responsible for; 9 Other Expenses • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Expenses on Issuing Identity Cards 5,119,782 4,227,630 Sundrymanaged Expenses by BOI. 18,431,786 20,139,859 Container Key Locks 2,117,851 1,427,535 • Insurance 3,225,728 3,301,780 Environment Control Expenses 1,656,295 394,196 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Corporate Social Responsibility Expenses 25,534 - • EntertainmentDetermination of infrastructure to be provided to the Zones. 714,011 810,326 31,290,988 30,301,325 • and handing over of operation of Zones to Zone Management Units. 10 NetUndertaking Finance Income initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land Financematters Income and provision of infrastructure. Interest Income on Call Deposits/Others 378,769,490 313,553,712 • Interest Income on Staff Loans 32,675,424 30,896,330 Totalestablishment Finance Income of an integrated solid waste management 411,444,914 project/industrial 344,450,042 park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Financewater andExpenses wastewater systems within the Zones. Interest on Lease Liabilities 9,809,725 6,996,378 • Providing technical support for infrastructure development work carried out by the existing Bank Charges 847,835 741,020 TotalExport Finance Processing Expenses Zones/Industrial Parks as and when requested. 10,657,560 7,737,398 • Providing technical support for operation and maintenance of water supply, wastewater and Net Finance Income 400,787,354 336,712,644 solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 64 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTESinfrastructure TO THE developmentFINANCIAL pertainingSTATEMENTS to Export Processing Zones and Industrial Parks managed by -

BOI. ST Rs. Total 31,691,735 75,485,233 89,582,498 93,267,000 30,608,184 29,406,573

FOR THE YEAR ENDED 31 DECEMBER 212,256,071 412,522,296 212,256,071 118,989,071 452,196,175

2019 2018 31.12.2018 8,740,232,359 9,196,548,153 3,576,576,527 3,998,164,518 5,198,383,635 5,291,650,635

Key functions of the department are; establishment of new Investment Rs. Zones, providing Rs. technical

8inputsGovernment for construction, Levies operation, maintenance and determination of infrastructure facilities in Rs. Total 34,927,543 78,282,681 18,343,000 79,973,166 29,038,614 39,164,049

zones, advertising vacant lands on availability for selection of investors for new investment projects 369,080,015 212,256,071 118,989,071 158,153,120 201,252,951 359,406,071 147,150,000 472,313,526

Stamp Duty 1,436,880 372,675 31.12.2019 9,196,548,152 9,550,734,109 3,998,164,518 4,441,439,430 5,109,294,679 5,310,547,630

andNation assisting Building Competent Tax Authority in transferring assets divested 52,581,685 to the State. 46,988,831 - Value Added Tax - Disallowed VAT Input 200,550,012 183,230,398

Services Rendered by the Department 254,568,577 230,591,904 Rs. 5,030,105 Motor

Vehicles 14,252,000 50,771,989 30,595,300 14,252,000 39,164,049 19,260,324

224,804,797 246,178,202 190,397,889 195,406,213 212,256,071 359,406,071 118,989,071 158,153,120 201,252,951 252,024,940 147,150,000

The Technical Services Department is mainly responsible for; ------

9 Other Expenses

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Rs. 5,060,442 5,055,976

26,361,048 66,586,040 66,586,040 Expenses on Issuing Identity Cards 5,119,782 4,227,630 35,589,620

234,427,933 255,728,539 158,608,855 189,142,499 Computers

Sundrymanaged Expenses by BOI. 18,431,786 20,139,859 ------

Container Key Locks 2,117,851 1,427,535 • 777,500 Rs.

Insurance 3,225,728 3,301,780 2,479,921 2,162,785

14,913,163 95,154,465 73,867,842 73,867,842 17,574,835 & Office

Furniture, 171,223,615 184,434,357 110,566,515 Equipment

Environment Control Expenses 1,656,295 394,196

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Corporate Social Responsibility Expenses 25,534 -

------

Entertainment 714,011 810,326 Rs. 51,088

78,682 36,993 94,615

• Determination of infrastructure to be provided to the Zones.

909,263 881,669 404,999 462,621 419,048 419,048

Fittings

31,290,988 30,301,325 & Fixtures ------

• Rs. and handing over of operation of Zones to Zone Management Units. 15 2,473,874 1,198,646 1,167,934 4,366,594

Plant & 70,819,444 31,895,486 44,562,400 47,761,060 56,229,098 56,229,098

Undertaking initial development work of new investment zones, establishment of zone offices Machinery 103,990,158

10 Net Finance Income

• Providing assistance and technical inputs for special investment projects with regard to land ------

Financematters Income and provision of infrastructure. Rs. 5,578,693 5,061,852 2,625,126

Interest Income on Call Deposits/Others 378,769,490 313,553,712 305,766,733 304,412,554

Structures

6,014,448,563 6,320,732,137 2,631,135,225 2,932,922,653 3,387,809,484 3,387,809,484 Interest Income on Staff Loans 32,675,424 30,896,330

• Total Finance Income 411,444,914 344,450,042 - - - - - establishment of an integrated solid waste management project/industrial park and recycle of - -

Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Rs. 6,796,000 3,737,800

Finance Expenses 25,610,191 91,014,984

877,900,685 965,177,869 871,009,220 871,009,220

Buildings

1,817,372,898 1,836,187,089 Interest on Lease Liabilities 9,809,725 6,996,378

• Providing technical support for infrastructure development work carried out by the existing Bank Charges 847,835 741,020 ------

TotalExport Finance Processing Expenses Zones/Industrial Parks as and when requested. 10,657,560 7,737,398 Rs. Land 78,282,681 18,343,000

662,541,639 602,601,958 602,601,958 602,601,958 • Providing technical support for operation and maintenance of water supply, wastewater and

Net Finance Income 400,787,354 336,712,644 solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Board of Directors of BOI. December December December January January January January st st st st st st st DECEMBER 2019

14 ST December December December December 2019, Motor Vehicles acquired under Finance Leases amounted to Rs 359,406,071.00 are They mainly related to Property used in administration. The liability relating to these assets are st st st st BOARD OF SRI LANKA OF INVESTMENT NOTES TO THE FINANCIAL STATEMENTS 31 AT AS 11 Property, Plant and Equipment at Cost Assets Freehold 01 at as Balance Additions during the year Progress in Work Capital from Transferred Disposal during the year Transferred to Investment Property Transferred from Investment Property 31 at as Balance Depreciation 01 at as Balance Charge for the year On Disposals 31 at as Balance Written Down Value of Freehold Assets 31 at As Assets Leasehold 01 at as Balance Additions during the year Assets Leasehold Total Depreciation 01 at as Balance Charge for the year 31 at as Balance Written Down Value of Leaseholds Assets 31 at As Written Down Value of Assets 31 at As 31 at As shown under Note 22 "Non Current Financial Liabilities".

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 64 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 65 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOARD OF INVESTMENT OF SRI LANKA BOI. NOTES TO THE FINANCIAL STATEMENTS Key functions of the department are; establishment of new Investment Zones, providing technical ST inputsAS AT for 31 construction, DECEMBER operation, maintenance and determination2019 of infrastructure2018 facilities in Rs. Rs. zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting12 Investment Competent Property Authority in transferring assets divested to the State. Balance as at 1st January 31,172,293,810 31,172,293,810 ServicesTransferred Rendered from by Property the Department Plant & Equipment - Land 78,282,681 - Additions during the year 247,192 - The TechnicalTransferred Services to Property Department Plant & Equipment-Land is mainly responsible for; 18,343,000 Less -Accumulated Amortization as at 31st December 159,115,096 143,030,190 • Overall control stof Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Balance as at 31 December 31,073,365,587 31,029,263,620 managed by BOI.

• 13 Capital Work-in-Progress • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. General Projects • Determination ofst infrastructure to be provided to the Zones. Balance as at 1 January 1,349,464,459 1,224,759,463 Additions during the year 817,458,555 584,404,154 • Capitalized during the year (445,928,018) (453,553,053) and Refundshanding & Adjustmentsover of operation of Zones to Zone Management (85,855,905) Units. (6,146,104) Undertaking initial development work of new investment zones, establishment of zone offices Balance as at 31st December 1,635,139,091 1,349,464,460 • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Special Projects st establishmentBalance as at 1of January an integrated solid waste management project/industrial 271,193,946 234,886,014 park and recycle of PreparationRefunds of proposals, identification of sites, obtaining (11,141) necessary approvals (688,000) for the water and wastewater systems within the Zones. Additions during the year 100,923,786 36,995,932 Transferred to General Projects under Capital Work-In-Progress (44,931,036) - • Providing technical support for infrastructure development work carried out by the existing Balance as at 31st December 327,175,556 271,193,946 Export Processing Zones/Industrial Parks as and when requested. Software Assets -IT Enablement Project 20,040,883 16,040,883 • Providing technical support for operation and maintenance of water supply, wastewater and solidTotal waste Capital management Work-in-Progress schemes of existing Export Processing 1,982,355,530 Zones/Industrial 1,636,699,289 Parks.

• InspectionAdvance &payments making on recommendationspreliminary and development on technical expenses onaspects Special for Projects the industrialwhich can not parks be which have estimated and classified initially or as at Balance Sheet date have been shown under Capital Work-In- Progress (CWIP) until those projects are completed. Cost of the ongoing software solutions are shown • Aencountereddvertisingunder CWIP. vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 66 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for BOARD OF INVESTMENT OF SRI LANKA infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOARD OF INVESTMENT OF SRI LANKA BOI. NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS ST Key functions of the department are; establishment of new Investment Zones, providing technical AS AT 31 DECEMBER 2019 2018 ST Rs. Rs. inputsAS AT for 31 construction, DECEMBER operation, maintenance and determination2019 of infrastructure2018 facilities in Rs. Rs. 14 Non Current Financial Assets zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting12 Investment Competent Property Authority in transferring assets divested to the State. Staff Loans & Advances (Note 14.1) 654,403,425 601,097,866 st Balance as at 1 January 31,172,293,810 31,172,293,810 Total Non Current Financial Assets (Note 14.3) 654,403,425 601,097,866 ServicesTransferred Rendered from by Property the Department Plant & Equipment - Land 78,282,681 - Additions during the year 247,192 - The TechnicalTransferred Services to Property Department Plant & Equipment-Land is mainly responsible for; 18,343,000 Rs.202,483,884.00, the part less than one year of other non current financial assets is included under other Less -Accumulated Amortization as at 31st December 159,115,096 143,030,190 current financial assets. • Overall control stof Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Balance as at 31 December 31,073,365,587 31,029,263,620 2019 2018 managed by BOI. Rs. Rs. • 14.1 Staff Loans & Advances Staff Loans & Advances - Maturity part more than one year (Note 14.3) 654,403,425 601,097,866 13 Capital Work-in-Progress • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Staff Loans & Advances - Maturity part less than one year (Note 15) 202,483,884 192,072,962 General Projects Prepaid Staff Expenses for Staff loan 111,497,566 101,639,036 • Determination ofst infrastructure to be provided to the Zones. Balance as at 1 January 1,349,464,459 1,224,759,463 Less : IFRS Adjustments -Staff Loan (111,497,566) (101,639,036) Additions during the year 817,458,555 584,404,154 • Total Staff Loans & Advances 856,887,308 793,170,828 Capitalized during the year (445,928,018) (453,553,053) and Refundshanding & Adjustmentsover of operation of Zones to Zone Management (85,855,905) Units. (6,146,104) Undertaking initial development work of new investment zones, establishment of zone offices Balance as at 31st December 1,635,139,091 1,349,464,460 • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. 14.2 Financial Assistance Programme • Special Projects st establishmentBalance as at 1of January an integrated solid waste management project/industrial 271,193,946 234,886,014 park and recycle of st PreparationRefunds of proposals, identification of sites, obtaining (11,141) necessary approvals (688,000) for the Balance as at 1 January 26,344,063 26,344,063 water and wastewater systems within the Zones. Additions during the year 100,923,786 36,995,932 Repaid during the year (10,223,107) - Transferred to General Projects under Capital Work-In-Progress (44,931,036) - Balance as at 31st December before Provision of Impairment 16,120,956 26,344,063 • Providing technicalst support for infrastructure development work carried out by the existing Balance as at 31 December 327,175,556 271,193,946 Less - Provision for Impairment (16,120,956) (26,344,063) Export Processing Zones/Industrial Parks as and when requested. st Balance as at 31 December after Provision for Impairment - - Software Assets -IT Enablement Project 20,040,883 16,040,883 • Providing technical support for operation and maintenance of water supply, wastewater and solidTotal waste Capital management Work-in-Progress schemes of existing Export Processing 1,982,355,530 Zones/Industrial 1,636,699,289 Parks.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 66 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 67 - 8. Technical Services Department

BOARDThe OFTechnical INVESTMENT Services OF SRIDepartment LANKA is responsible for the overall control of Action Plan for

NOTESinfrastructure TO THE FINANCIAL development STATEMENTS pertaining to Export Processing Zones and Industrial Parks managed by BOI. AS AT 31ST DECEMBER Key functions of the department are; establishment of new Investment Zones, providing technical 14.3 Non Current Financial Assets inputs for construction, operation, maintenance and determination of infrastructure facilities in Financialzones, Assets advertising (Loans and vacant receivables) lands measured on availability at amortized for cost selection break down of investors by maturity fordate new is as follows.investment projects and assisting Competent Authority in transferring assets divested to theMaturity State. 31.12.2019 Between 1 After Services Rendered by the Department Rs. and 05 years 05 years Staff Loans & Advances 654,403,425 443,342,747 211,060,677 TheTotal Technical Non Current Services Financial Department Assets is mainly responsible 654,403,425 for; 443,342,747 211,060,677

• Overall control of Action Plan for infrastructure development Maturitypertaining to EPZs, IPs, etc, 31.12.2018 Between 1 After managed by BOI. Rs. and 05 years 05 years Staff Loans & Advances 601,097,866 409,749,339 191,348,527 •Total Non Current Financial Assets 601,097,866 409,749,339 191,348,527 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones. 2019 2018 • Rs. Rs. 15 Currentand handing Financial overAssets of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices •Measured Providing at amortized assistance cost maturity and technical part less than inputs one year for special investment projects with regard to land Staff Loans 192,130,596 181,639,300 matters Staff Advances and provision of infrastructure. 10,353,288 10,433,663 Total Staff Loans & Advances as at 31st December 202,483,884 192,072,962 • Less-Provision for Impairment on Staff loan (Note 15.1) (2,740,570) (4,867,225) establishment of an integrated solid waste management project/industrial 199,743,314 187,205,737 park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Financial Assets measured at Fair Value • Providing Fixed Deposit technical - State Mortgage support & forInvestment infrastructure Bank development 6,716,116 work carried 6,485,556 out by the existing Fixed Deposit 20,000 20,000 TotalExport Current Processing Financial AssetsZones/Industrial Parks as and when requested. 206,479,430 193,711,293

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing2019 Zones/Industrial2018 Parks. Rs. Rs. 15.1 •Provision Inspection for Impairment & making on recommendations Receivables - Staff loanson technical & Advances aspects for the industrial parks which have Balance as at 1st January 4,867,225 - Provision made during the year (2,126,655) 4,867,225 st Balance as at 31 December 2,740,570 4,867,225 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 68 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARDThe OFTechnical INVESTMENT Services OF SRIDepartment LANKA is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS NOTESinfrastructure TO THE FINANCIAL development STATEMENTS pertaining to Export Processing Zones and Industrial Parks managed by

BOI. ST AS AT 31ST DECEMBER AS AT 31 DECEMBER 2019 2018 Rs. Rs. Key functions of the department are; establishment of new Investment Zones, providing technical 14.3 Non Current Financial Assets 16 Receivables from Enterprises inputs for construction, operation, maintenance and determination of infrastructure facilities in Financialzones, Assets advertising (Loans and vacant receivables) lands measured on availability at amortized for cost selection break down of investors by maturity fordate new is as follows.investment projects Receivables from Enterprises 725,609,535 639,266,361 and assisting Competent Authority in transferring assets divested to theMaturity State. Less-Provision for Impairment on Receivables - (Note 16.1) (410,118,417) (372,722,869) 31.12.2019 Between 1 After 315,491,118 266,543,492 Services Rendered by the Department Rs. and 05 years 05 years Staff Loans & Advances 654,403,425 443,342,747 211,060,677 TheTotal Technical Non Current Services Financial Department Assets is mainly responsible 654,403,425 for; 443,342,747 211,060,677 16.1 Provision for Impairment on Receivables • Overall control of Action Plan for infrastructure development Maturitypertaining to EPZs, IPs, etc, 31.12.2018 Between 1 After st managed by BOI. Balance as at 1 January 372,722,869 349,670,032 Rs. and 05 years 05 years Provision made during the year 37,395,548 23,052,837 Staff Loans & Advances 601,097,866 409,749,339 191,348,527 st •Total Non Current Financial Assets 601,097,866 409,749,339 191,348,527 Balance as at 31 December 410,118,417 372,722,869 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones. 2019 2018 • Rs. Rs. 17 Payments in Advance and Other Receivables 15 Currentand handing Financial overAssets of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Advance Payments 610,713 16,022,569 Advance Payments Foreign Travel 569,999 569,999 •Measured Providing at amortized assistance cost maturity and technical part less than inputs one year for special investment projects with regard to land Staff Loans 192,130,596 181,639,300 Sri Lanka Mission Abroad 323,950 859,701 matters Staff Advances and provision of infrastructure. 10,353,288 10,433,663 Mobilization Advances 78,620,138 85,425,427 Total Staff Loans & Advances as at 31st December 202,483,884 192,072,962 Prepaid Expenses 713,900 1,773,738 • Less-Provision for Impairment on Staff loan (Note 15.1) (2,740,570) (4,867,225) Interest Income - Receivables 52,094,152 51,781,480 establishment of an integrated solid waste management project/industrial 199,743,314 187,205,737 park and recycle of Deposit Receivables 12,283,822 10,402,466 Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Deposit Against Pending Litigation 106,119,518 106,119,518 Financial Assets measured at Fair Value Other Receivables 78,157,452 276,697,178 • Providing Fixed Deposit technical - State Mortgage support & forInvestment infrastructure Bank development 6,716,116 work carried 6,485,556 out by the existing Less-Provision for Impairment on Receivables (17.1) (65,205,229) (65,209,498) Fixed Deposit 20,000 20,000 264,288,415 484,442,579 TotalExport Current Processing Financial AssetsZones/Industrial Parks as and when requested. 206,479,430 193,711,293

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing2019 Zones/Industrial2018 Parks. Rs. Rs. 15.1 •Provision Inspection for Impairment & making on recommendations Receivables - Staff loanson technical & Advances aspects for the industrial parks which have Balance as at 1st January 4,867,225 - 17.1 Provision for Impairment on Other Receivables Provision made during the year (2,126,655) 4,867,225 Balance as at 1st January 65,209,498 71,710,332 st Balance as at 31 December 2,740,570 4,867,225 Provision made during the year (4,269) (6,500,834) • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation st Balance as at 31 December 65,205,230 65,209,498 through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

18 19

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 68 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 69 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by

ASBOI. AT 31 ST DECEMBER 2019 2018 Rs. Rs. 18 Key functionsFavourable of theCash department & Cash Equivalents are; establishment of new Investment Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in Bank of Ceylon - Personal Branch 142,608,614 190,273,749 zones, Bankadvertising of Ceylon vacant - Personal lands Branch on availability for selection of investors 110,400 for new investment 323,808 projects and assistingBank of CompetentCeylon - Personal Authority Branch in transferring assets divested to60,000 the State. 9,500 Sampath Bank PLC-WTC Branch 12,816 19,261 ServicesBank Rendered of Ceylon -Katunayakeby the Department 30,020,793 28,427,742 Bank of Ceylon -Biyagama 34,525,949 78,456,342 The TechnicalBank of Ceylon Services - Koggala Department is mainly responsible for; 3,187,637 433,139 Bank of Ceylon - Digana 24,193,116 4,605,595 • OverallBank of controlCeylon -Avissawella of Action Plan for infrastructure development 36,366,047 pertaining 8,706,663 to EPZs, IPs, etc, managedBank of Ceylon by BOI. -Ingiriya 10,605,456 8,801,009 Bank of Ceylon - Mirigama 133,013 305,010 • Bank of Ceylon - Nittambuwa 13,234,986 6,915,492 Bank of Ceylon - Kurunegala 6,232,000 605,889 • PlanningIdentificationGold Sovereign and developmentof sites for new of newinvestment investment zones/projects. zones. 44,800 44,800 Balance in Franking Machine 276,197 252,881 • DeterminationTemporary Surplus of infrastructure Fund - Bank of Ceylonto be provided to the Zones. 3,734,277 3,514,734 National Savings Bank - Staff Security Deposits 194,192 218,705 • Plan Assets for Gratuity - Treasury Bonds 314,173,657 265,581,119 andRepurchase handing Agreements over of operation of Zones to Zone Management 3,718,508,827 Units. 3,153,357,596 UndertakingTotal Cash and initial Cash development Equivalents work of new investment 4,338,222,775 zones, establishment 3,750,853,033 of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

19 • Deferred Expenditure BOI acquired nine (9) floors of World Trade Centre in 2008, the cost of interior decorations establishment of an integrated solid waste management project/industrial park and recycle of Preparation,carpeting and ofpartitions proposals, are recognized identification in the income of sites, statement obtaining on a straight necessary line basis approvals over the for the waterestimated and wastewateruseful life of 10systems years. Amortizationwithin the Zones. of Cost of Zone Development is recognized over 20 years. • Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.2019 2018 Rs. Rs. • ProvidingBalance as technical at 1st January support for operation and maintenance 397,100,121 of water supply, 415,893,541 wastewater and solidExpenditure waste management Deferred during schemes the year of existing Export Processing 70,412,562 Zones/Industrial 31,094,220 Parks. Less - Current year expenditure (50,089,719) (49,887,640) st • InBalancespection as &at making31 December recommendations on technical aspects 417,422,964 for the industrial 397,100,121 parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 70 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by AS AT 31ST DECEMBER 2019 2018 ASBOI. AT 31 ST DECEMBER 2019 2018 Rs. Rs. 20 Deferred Revenue Rs. Rs. 18 Key functionsFavourable of theCash department & Cash Equivalents are; establishment of new Investment Zones, providing technical Land Premium 20.1 15,898,298,040 15,708,350,186 inputs for construction, operation, maintenance and determination of infrastructure facilities in Grant 20.2 17,652,309 24,749,839 Bank of Ceylon - Personal Branch 142,608,614 190,273,749 15,915,950,349 15,733,100,025 zones, Bankadvertising of Ceylon vacant - Personal lands Branch on availability for selection of investors 110,400 for new investment 323,808 projects and assistingBank of CompetentCeylon - Personal Authority Branch in transferring assets divested to60,000 the State. 9,500 Sampath Bank PLC-WTC Branch 12,816 19,261 20.1 Deferred Revenue - Land Premium ServicesBank Rendered of Ceylon -Katunayakeby the Department 30,020,793 28,427,742 st Bank of Ceylon -Biyagama 34,525,949 78,456,342 Balance as at 1 January 15,708,350,186 15,358,994,399 The TechnicalBank of Ceylon Services - Koggala Department is mainly responsible for; 3,187,637 433,139 Received during the year 408,747,714 562,037,744 Bank of Ceylon - Digana 24,193,116 4,605,595 Recognized income through Income Statements (218,799,859) (212,681,957)

• OverallBank of controlCeylon -Avissawella of Action Plan for infrastructure development 36,366,047 pertaining 8,706,663 to EPZs, IPs, etc, st Balance as at 31 December (Note 20.1.1) 15,898,298,040 15,708,350,186 managedBank of Ceylon by BOI. -Ingiriya 10,605,456 8,801,009 Bank of Ceylon - Mirigama 133,013 305,010 • Bank of Ceylon - Nittambuwa 13,234,986 6,915,492 20.1.1 Deferred Revenue Maturity Bank of Ceylon - Kurunegala 6,232,000 605,889 31.12.2019 Within 01 Between 1 After • PlanningIdentificationGold Sovereign and developmentof sites for new of newinvestment investment zones/projects. zones. 44,800 44,800 Rs. year and 05 years 5 years Balance in Franking Machine 276,197 252,881 Land Premium 15,898,298,040 218,799,859 1,093,999,297 14,585,498,883 • DeterminationTemporary Surplus of infrastructure Fund - Bank of Ceylonto be provided to the Zones. 3,734,277 3,514,734 15,898,298,040 218,799,859 1,093,999,297 14,585,498,883 National Savings Bank - Staff Security Deposits 194,192 218,705 • Plan Assets for Gratuity - Treasury Bonds 314,173,657 265,581,119 Maturity andRepurchase handing Agreements over of operation of Zones to Zone Management 3,718,508,827 Units. 3,153,357,596 31.12.2018 Within 01 Between 1 After UndertakingTotal Cash and initial Cash development Equivalents work of new investment 4,338,222,775 zones, establishment 3,750,853,033 of zone offices Rs. year and 05 years 5 years Land Premium 15,708,350,186 212,681,958 1,063,409,787 14,432,258,441 • Providing assistance and technical inputs for special investment projects with regard to land 15,708,350,186 212,681,958 1,063,409,787 14,432,258,441 matters and provision of infrastructure.

19 • Deferred Expenditure Deferred income liabilities principally relate to Land Premium Income received from Enterprises, for which revenue is BOI acquired nine (9) floors of World Trade Centre in 2008, the cost of interior decorations recognised over the period of time throughout the agreement period. The revenue recognition in the agreement is establishment of an integrated solid waste management project/industrial park and recycle of applied separately to each agreement and that amount is recoginsed as revenue over the period. Preparation,carpeting and ofpartitions proposals, are recognized identification in the income of sites, statement obtaining on a straight necessary line basis approvals over the for the waterestimated and wastewateruseful life of 10systems years. Amortizationwithin the Zones. of Cost of Zone Development is recognized over 20 years. 20.2 Deferred Revenue - Grant • Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.2019 2018 2019 2018 Rs. Rs. Rs. Rs. st • ProvidingBalance as technical at 1st January support for operation and maintenance 397,100,121 of water supply, 415,893,541 wastewater and Balance as at 1 January 24,749,839 13,609,041 Expenditure Deferred during the year 70,412,562 31,094,220 Additions during the year solid waste management schemes of existing Export Processing Zones/Industrial Parks. MAS Holding Grant - 4,000,000 Less - Current year expenditure (50,089,719) (49,887,640) st Japanese Embassy Grant - 14,145,319 • InBalancespection as &at making31 December recommendations on technical aspects 417,422,964 for the industrial 397,100,121 parks which have Recognized income through Income Statements (7,097,531) (7,004,520) st Balance as at 31 December 17,652,309 24,749,839

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Grant from the Japanese Government is recognized as Non Current Assets at their fair value. Grant is recognized as through Land Allocation Committee followed by the approvals of Screening Committee and income over the period to match with the depreciation expenses on those assets. Board of Directors of BOI.

20 21

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 70 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 71 - 8. Technical Services Department

BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTESinfrastructure TO THE FINANCIAL development STATEMENTS pertaining to Export Processing Zones and Industrial Parks managed by BOI. AS AT 31ST DECEMBER 2019 2018 Key functions of the department are; establishment of new Investment Rs. Zones, providing Rs. technical 21 Retirement Benefit Obligations inputs for construction, operation, maintenance and determination of infrastructure facilities in zones,Present advertising Value of Defined vacant Benefit lands Obligations on availability as at 01st Januaryfor selection of investors 272,788,724 for new investment 265,684,539 projects Interest Cost 32,734,647 26,484,598 and Currentassisting Service Competent Cost Authority in transferring assets divested to 14,200,443the State. 12,124,446 Gratuity payable re-adjustment 1,270,808 476,406 ServicesActuarial Rendered (Gain)/Loss byon obligations the Department 46,932,575 14,962,713 Less - Payments made/payable during the year (37,935,136) (46,943,978) st The ProvisionTechnical as at Services 31 December Department is mainly responsible for; 329,992,061 272,788,724

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Movement in the Present Value of Plan Assets Fairmanaged Value of Planby BOI. Assets 265,581,119 246,437,573 Expected Return on Plan Assets for the period 31,869,734 24,643,757 • Contribution paid into the plan 48,592,538 19,244,038 Gratuity paid / payable by the Plan Assets (27,302,724) (28,633,412) • ActuarialPlanningIdentification Gain and / (Loss) developmentof siteson Plan for Assets new of newinvestment investment zones/projects. zones. (4,567,010) 3,889,162 Fair Value of Plan Assets 314,173,657 265,581,119 • Determination of infrastructure to be provided to the Zones. Expenses Recognized in the Income Statement • Interest Cost 32,734,647 26,484,598 Expected Return on Plan Assets (31,869,734) (24,643,757) Currentand handing Service Cost over of operation of Zones to Zone Management Units. 14,200,443 12,124,446 ActuarialUndertaking (Gain)/Loss initial development work of new investment zones, 51,499,585 establishment 10,973,058 of zone offices • TotalProviding Amount Recognisedassistance in Incomeand technical Statement inputs for special investment 66,564,941 projects with 24,938,345 regard to land

Planmatters Assets andconsists provision of the following of infrastructure. Treasury Bonds 314,173,657.00 265,581,119 • Total of Gratuity Plan Assets 314,173,657.00 265,581,119 establishment of an integrated solid waste management project/industrial park and recycle of AnPreparation independent actuarial of proposals, valuation of the identification Retirement Benefit of Obligation sites, obtainingwas carried out necessary as at 31st December approvals 2019 for the bywater professional and wastewater actuary M/S Actuarial systems & Managementwithin the Consultants Zones. (Pvt) Limited. The valuation method used by the Actuary to value the Retirement Benefit Obligation is " Projected Unit Credit Method".Board maintains • aProviding separate plan technical assets consisting support investment for ininfrastructure Treasury Bonds. development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested. The Key Assumptions used by Actuary includes the following. 2019 2018 • (i)P roviding Discount Ratetechnical support for operation and maintenance of11% water supply, wastewater12% and (ii)solid Salary waste Increment management Rate schemes of existing Export ProcessingFixed Zones/Industrial Fixed Parks. (iii) Assumption regarding Future Mortality A1967/70 A1967/70 • (iv)In spection Retirement & Age making recommendations on technical aspects for60 the Years industrial parks60 Years which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 72 - - 27 - 8. Technical Services Department

BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for BOARD OF INVESTMENT OF SRI LANKA NOTESinfrastructure TO THE FINANCIAL development STATEMENTS pertaining to Export Processing Zones and Industrial Parks managed by NOTES TO THE FINANCIAL STATEMENTS BOI. ST AS AT 31 DECEMBER 2019 2018 AS AT 31ST DECEMBER Key functions of the department are; establishment of new Investment Rs. Zones, providing Rs. technical 21 Retirement Benefit Obligations 2019 2018 inputs for construction, operation, maintenance and determination of infrastructure facilities in Rs. Rs. zones,Present advertising Value of Defined vacant Benefit lands Obligations on availability as at 01st Januaryfor selection of investors 272,788,724 for new investment 265,684,539 projects 22 Non Current Financial Liabilities Interest Cost 32,734,647 26,484,598 st and assisting Competent Authority in transferring assets divested to the State. Balance as at 1 January 58,155,362 78,928,729 Current Service Cost 14,200,443 12,124,446 Finance Lease obtained during the year 99,395,880 - Gratuity payable re-adjustment 1,270,808 476,406 ServicesActuarial Rendered (Gain)/Loss byon obligations the Department 46,932,575 14,962,713 Installments paid during the year (29,454,696) (20,773,367) Less - Payments made/payable during the year (37,935,136) (46,943,978) Total Undiscounted Lease Liailities as at 31st December 128,096,546 58,155,362 st The ProvisionTechnical as at Services 31 December Department is mainly responsible for; 329,992,061 272,788,724 Lease Liabilities included in the Statement of Finacial Position • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Non Current Financial Liabilities (Falling within one year) 26,977,500 13,817,596 Movement in the Present Value of Plan Assets Current Financial Liabilities (Falling after one year) 74,875,711 34,105,586 Fairmanaged Value of Planby BOI. Assets 265,581,119 246,437,573 Expected Return on Plan Assets for the period 31,869,734 24,643,757 Total Payable Finance Liabilities - Lease 101,853,211 47,923,182 • Contribution paid into the plan 48,592,538 19,244,038 Gratuity paid / payable by the Plan Assets (27,302,724) (28,633,412) Amount Recognised in Income Statements Interest on Lease Liabilities • ActuarialPlanningIdentification Gain and / (Loss) developmentof siteson Plan for Assets new of newinvestment investment zones/projects. zones. (4,567,010) 3,889,162 Interest on Lease Liabilities 9,809,725 6,996,378 Fair Value of Plan Assets 314,173,657 265,581,119 Total Interest on Lease Liabilities 9,809,725 6,996,378 • Determination of infrastructure to be provided to the Zones. Expenses Recognized in the Income Statement 23 Accrued Expenses and Other Payables • Interest Cost 32,734,647 26,484,598 Expected Return on Plan Assets (31,869,734) (24,643,757) Sundry Creditors 84,942,925 341,296,482 Currentand handing Service Cost over of operation of Zones to Zone Management Units. 14,200,443 12,124,446 Accrued Expenses 196,929,064 217,376,183 ActuarialUndertaking (Gain)/Loss initial development work of new investment zones, 51,499,585 establishment 10,973,058 of zone offices Gratuity Payable 388,310 1,659,118 Total Amount Recognised in Income Statement 66,564,941 24,938,345 • Providing assistance and technical inputs for special investment projects with regard to land Funds received for Commonwealth FDI Promotion 917,160 917,160 Planmatters Assets andconsists provision of the following of infrastructure. Funds received for Tsunami - 213,408 Treasury Bonds 314,173,657.00 265,581,119 Funds received for Flood Victims - 761,058 • Total of Gratuity Plan Assets 314,173,657.00 265,581,119 Dialog - Subsidy 692,849 12,849 establishment of an integrated solid waste management project/industrial park and recycle of Receipts in Advance 255,775,124 239,679,313 AnPreparation independent actuarial of proposals, valuation of the identification Retirement Benefit of Obligation sites, obtainingwas carried out necessary as at 31st December approvals 2019 for the water and wastewater systems within the Zones. Refundable Deposits 137,330,922 140,189,309 by professional actuary M/S Actuarial & Management Consultants (Pvt) Limited. The valuation method used Land Reservation Fees 104,845,846 9,767,879 by the Actuary to value the Retirement Benefit Obligation is " Projected Unit Credit Method".Board maintains • aProviding separate plan technical assets consisting support investment for ininfrastructure Treasury Bonds. development work carried out by the existing Deposit Payable 236,861,617 331,472,726 Export Processing Zones/Industrial Parks as and when requested. Central Environmental Authority - 4,760,197 The Key Assumptions used by Actuary includes the following. Total Operating and Other Payables 1,018,683,817 1,288,105,680 2019 2018 • (i)P roviding Discount Ratetechnical support for operation and maintenance of11% water supply, wastewater12% and (ii)solid Salary waste Increment management Rate schemes of existing Export ProcessingFixed Zones/Industrial Fixed Parks. (iii) Assumption regarding Future Mortality A1967/70 A1967/70 • (iv)In spection Retirement & Age making recommendations on technical aspects for60 the Years industrial parks60 Years which have

23 22

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 72 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 73 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by FOR THE YEAR ENDED 31ST DECEMBER 2019 2018 BOI. Rs ( Mn.) Rs ( Mn.) 24 CASH GENERATED FROM OPERATIONS Key functions of the department are; establishment of new Investment Zones, providing technical inputsSurplus for after construction, Income Tax operation, maintenance and determination 1,106.81 of infrastructure 748.12 facilities in zones,Depreciation advertising vacant lands on availability for selection of investors 527.56 for new investment 497.69 projects Income Tax Expense 115.20 92.32 and assisting Competent Authority in transferring assets divested to the State. Provision for Retirement Benefit Obligation 46.94 38.61 Acturial (Gain) / Loss on Obligation 46.93 14.96 Services Rendered by the Department Provision for Imparement of Debtors 25.04 21.42 TheDeferred Technical Revenue Services - Land Department Premium is mainly responsible for; (218.80) (212.68) Deferred Revenue - Grant (7.10) (7.00) (Profit)/Loss• Overall control on sale of fixedAction assets Plan for infrastructure development (13.05) pertaining to (9.95) EPZs, IPs, etc, Investmentmanaged Income by BOI. (411.44) (344.45) Interest on Lease 9.81 7.00 Amortization• of Deferred Expenditure 50.09 49.89 Operating surplus before working capital changes 1,277.99 895.92 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Working capital changes Stocks• Determination of infrastructure to be provided to the Zones. 1.44 3.57 Receivables From Enterprises (86.78) (44.98) • Payment in Advance & Other Receivables 12.26 (27.85) and handing over of operation of Zones to Zone Management Units. FinancialUndertaking Assets initial development work of new investment zones, (10.64) establishment (17.76) of zone offices Accrued expenses & other payables (269.43) 227.19 Operating• Providing surplus assistance after workingand technical capital inputs changes for special investment 924.84 projects 1,036.10with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 74 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for NOTES TO THE FINANCIAL STATEMENTS infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by FOR THE YEAR ENDED 31ST DECEMBER 2019 2018 BOI. Rs ( Mn.) Rs ( Mn.) 24 CASH GENERATED FROM OPERATIONS Key functions of the department are; establishment of new Investment Zones, providing technical inputsSurplus for after construction, Income Tax operation, maintenance and determination 1,106.81 of infrastructure 748.12 facilities in zones,Depreciation advertising vacant lands on availability for selection of investors 527.56 for new investment 497.69 projects Income Tax Expense 115.20 92.32 and assisting Competent Authority in transferring assets divested to the State. Provision for Retirement Benefit Obligation 46.94 38.61 Acturial (Gain) / Loss on Obligation 46.93 14.96 Services Rendered by the Department Provision for Imparement of Debtors 25.04 21.42 TheDeferred Technical Revenue Services - Land Department Premium is mainly responsible for; (218.80) (212.68) Deferred Revenue - Grant (7.10) (7.00) (Profit)/Loss• Overall control on sale of fixedAction assets Plan for infrastructure development (13.05) pertaining to (9.95) EPZs, IPs, etc, Investmentmanaged Income by BOI. (411.44) (344.45) Interest on Lease 9.81 7.00 Amortization• of Deferred Expenditure 50.09 49.89 Operating surplus before working capital changes 1,277.99 895.92 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Working capital changes Stocks• Determination of infrastructure to be provided to the Zones. 1.44 3.57 Receivables From Enterprises (86.78) (44.98) • Payment in Advance & Other Receivables 12.26 (27.85) and handing over of operation of Zones to Zone Management Units. FinancialUndertaking Assets initial development work of new investment zones, (10.64) establishment (17.76) of zone offices Accrued expenses & other payables (269.43) 227.19 Operating• Providing surplus assistance after workingand technical capital inputs changes for special investment 924.84 projects 1,036.10with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 74 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 75 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 76 - - 27 - 8. Technical Services Department

126.41 Key functions of the department are; establishment of new Investment Zones, providing technical 2,757.05 1,212.21 2,757.05

20,800.49 22,139.11 Export Export Export inputs for construction, operation, maintenance and determination of infrastructure facilities in Export

zones, advertising vacant lands on availability for selection of investors for new investment projects Rs (Mn) Rs (Mn) Rs (Mn) Rs (Mn) ------and assisting Competent Authority in transferring assets divested to the State. - 2.12 47.72 47.72

2,750.00 8,172.49 2,750.00

Services Rendered by the Department 25,245.24 33,419.84 Import Import Import Import Import Import Import Import

The Technical Services Department is mainly responsible for; ------

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. 12,526,256.46 12,526,256.46

Ground Rent Ground Rent Ground Rent Ground Rent

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. - 82,800.00 989,945.00 569,218.37 494,972.50 424,859.30 569,218.37 569,218.37 128,692.85 569,218.37 494,972.50 424,859.30 • Determination of infrastructure to be provided to the Zones. 569,218.37 1,252,280.42 4,161,373.38 Annual Fee Annual Fee Annual Fee

• Annual Fee Rs and handing over of operation of Zones to Zone Management Units.

Undertaking initial development work of new investment zones, establishment of zone offices Status Status Status Status Active Active Active Active Active Actice Active Active Active Active Active • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. Mode Mode Mode Mode Annual Fee Annual Fee Annual Fee Annual Fee Annual Fee • Annual Fee Annual Fee Annual Fee Annual Fee Ground Rent 16 SEC Annual Fee - establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the of Srilanka of Investment Board water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and Total Total Total Total

solid waste management schemes of existing Export Processing Zones/Industrial Parks. :- Dr.2019) Related Party Disclosures history (Transactions Cabral Harsha Related Party Disclosures : Mr. Sanjay Kulathunga (Transaction history 2019) (Transaction : Mr.Related Party Disclosures Kulathunga Sanjay Related Party Disclosures : Dr. Harsha Subasinghe (Transactions history 2019) history : Dr.(Transactions Related Party Disclosures Subasinghe Harsha Related Party Disclosures :- Dr. Nihal Samarappuli (Transactions history 2019) history (Transactions :- Dr.Related Party Disclosures Samarappuli Nihal

• Inspection & making recommendations on technical aspects for the industrial parks which have Name Customer

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Code Gen International (pvt) Ltd (pvt) Code Gen International Name Customer PLC (Lanka) Company Cemment Tokyo Name Customer PLC (Lanka) Company Cemment Tokyo Ltd Biotech (Pvt) Agro Hayleys ltd (Pvt) Business Soution International Hayleys Fabric PLC Hayleys Free Zone Hayleys Ltd (Pvt) power Hydro Neluwa Hayleys Ltd Lines Hayleys Lanka Service Energy Hayleys Name Customer Board of Directors of BOI. Ltd Orion Towers No Agreement Agreement 002252 Agreement No 002016 Agreement No 002016 003323 004159 000583 004741 004914 002784 Agreement No 004880

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 76 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 77 - ANNEXURE II 8. Technical Services Department ANNEXURE II

PENDING LEGAL CASES AS AT 31.12.2019 The Technical Services Department is responsible for the overall control of Action Plan for SR/ CASE NO. PARTIES CURRENT POSITION infrastructureNO development pertaining to Export Processing Zones and Industrial Parks managed by 1 H.C. 3127/06 Case filed by Criminal Investigation Department against Ranjith Trial BOI. Amarasinghe. [Chairman/Managing Director, M/s Million Garments (Pvt) Ltd] 2 H.C. 3505/06 Case filed by Criminal Investigation Department against Ranjith Trial Amarasinghe. [Chairman/Managing Director, M/s Million Key functions of the departmentGarments (Pvt) Ltd]are; establishment of new Investment Zones, providing technical inputs3 H.C. (ARB)for construction,1254/2002 Million operation, Garments (Pvt) maintenance Ltd -vs- BOI and determinationCalling of for infrastructure further action facilities in zones,4 C.A. advertising(R/I) 08/2016 vacantB O Ilands -Vs- Million on Garments availability (Pvt) Ltd for selection of investorsTo be mentionedfor new investment projects and5 L.T. assisting Colombo 13/17/2019 CompetentS.Y. Authority Nawaratne -Vs- in B transferringO I assets divested toFixed the for State. Inquiry 6 S.C (F/R) 455/2015 S.Y. Nawaratne -VS- B O I & 09 Others Arguments

Services7 S.C. Appeal Rendered 53/2012 byJoint the Liquidators Department of Bonaventure Textiles (Lanka) Ltd -vs- BOI Arguments The8 S.C. Technical Appeal 54/2012 ServicesJoint Department Liquidators of Bonaventureis mainly Apparels responsible Lanka (Pvt) for; Ltd -vs- Arguments BOI 9 H.C. (Civil) 49/2011/CO Propack Shreiner (Pvt) Ltd -vs- Haikawa Industries (Pvt) Ltd Calling for further action • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, 10 D.C. Colombo DMR BOI -vs- Upasena Property Development (Pvt) Ltd Informed Shirathi Gunawardena 01262/13managed by BOI. Associates to take necessary steps to execute the writ 11 D.C. Colombo DMR Stirling Group Lanka (Pvt) Ltd For trial • 02244/2015 12 C.A (Writ) 444/2015 U.T.M.T Resort (Pvt) Ltd -VS- BOI Calling for further action • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. 13 C.A (Writ) 465/2015 Edna Cocoa Products (Pvt) Ltd -VS- B O I & 02 Others Arguments

14 • H.C.Determination (Civil) 56/2016/CO of M.I.K.infrastructure Perera -Vs- Lumiere to be Textiles provided Ltd & 06 Othersto the Zones. Calling

15 C.A. (Writ) 386/2016 Asiri Surgical Hospitals PLC -Vs- B O I & 02 Others The 2nd Respondent (BOI) and • Petitioner to inform the Court by and handing over of operation of Zones to Zone Management Units.way of a motion if any settlement Undertaking initial development work of new investment zones,is reached, establishment if not parties to of file zone offices Written Submissions • Providing assistance and technical inputs for special investment projects with regard to land 16 S.C. (SPL) L.A. 182/2017 R.A. Dharmadasa -Vs- B O I For Support matters and provision of infrastructure. 17 C.A. (Writ) 307/2008 MTV Channel (Pvt) Ltd -vs- Director General of Customs & 03 Arguments Others 18 • H.C. (Civil) 36/2012/CO Mac Supply Chain Solutions (Pvt) Ltd (Petitioner) and now Lincon Calling for further action Chandrasoma Piyasena (Re-Liquidator of Capital Consolidated establishment of anLanka integrated (Pvt) Ltd.) -vs- solid Star Clothing waste International management (Pvt) Ltd & project/industrial2 park and recycle of Preparation of proposals,Others identification of sites, obtaining necessary approvals for the 19 D.C.water Gampaha and 2165/L wastewaterM.M.M. systemsSmyle -vs- BOI within the Zones. Trial

20 ICC Arbitration 18656/CYK Sevanagala Sugar Industries Ltd -vs- BOI • Providing technical support for infrastructure development workPending carried out by the existing 21 H.C. (Civil) 579/2016 MR D.P. Jayasinghe Pilling Company (Pvt) Ltd -Vs- BOI & 02 Others No relief has been sought from Export Processing Zones/Industrial Parks as and when requested.BOI. BOI has been made a party for Notice Purpose only. • Providing technical support for operation and maintenance of water supply, wastewater and 22 C.A. (Writ) 112/2015 Centre for Environmental Justice (Guarantee) Limited -Vs- BOI & Judgement to be Delivered solid waste management07 Others schemes of existing Export Processing Zones/Industrial Parks. 23 S.C (F/R) REF 57/2017 Centre for Environmental Justice (Guarantee) Limited & 04 Others No relief has been sought from -Vs- Director General (BOI) & 16 Others BOI. BOI has been made a party • Inspection & making recommendations on technical aspects forfor the Notice industrial Purpose only. parks which have

24 D.C. Colombo DSP 68/2017 D.M. Industries Ltd -Vs- B O I & 02 Others The previous date of the case was on a holiday. -: The next step is for • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable publicthe Plaintiff concerns. investors to file motion by to an call evaluation the Case. No steps have been through Land Allocation Committee followed by the approvalstaken of by Screeningthe Plaintiff. Committee and

25 S.C.Board (SPL) LA of 227/2017 DirectorsEco of Tech BOI. Create 21 Company (Pvt) Ltd & another -Vs- BOI & 07 For support for further action Others 26 C.A. (Writ) 384/2017 Susung Lanka Industries Company (Pvt) Ltd & another -Vs- B O I To be mentioned & 06 Others

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 78 - - 27 - ANNEXURE II ANNEXURE II 8. Technical Services Department ANNEXURE II

PENDING LEGAL CASES AS AT 31.12.2019 PENDING LEGAL CASES AS AT 31.12.2019 The Technical Services Department is responsible for the overall control of Action Plan for SR/ CASE NO. PARTIES CURRENT POSITION SR/ CASE NO. PARTIES CURRENT POSITION infrastructureNO development pertaining to Export Processing Zones and Industrial Parks managed by NO 1 H.C. 3127/06 Case filed by Criminal Investigation Department against Ranjith Trial 27 H.C. (ARB) 645/2017 B O I -Vs- Avocadia Ceylon (Pvt) Ltd Ex-parte Judgement was BOI. Amarasinghe. [Chairman/Managing Director, M/s Million Delivered on 15.11.2019 in favour Garments (Pvt) Ltd] of the BOI 2 H.C. 3505/06 Case filed by Criminal Investigation Department against Ranjith Trial 28 C.A. (PHC) 27/2017 Dinagi Lanka (Pvt) Ltd -Vs- BOI Support date not yet received from Amarasinghe. [Chairman/Managing Director, M/s Million Key functions of the departmentGarments (Pvt) Ltd]are; establishment of new Investment Zones, providing technical the registry of Court of Appeal. 3 H.C. (ARB) 1254/2002 Million Garments (Pvt) Ltd -vs- BOI Calling for further action inputs for construction, operation, maintenance and determination of infrastructure facilities in 29 S.C. (H.C) L.A. 24/18 B O I -Vs- Haikawa Industries (Pvt) Ltd & 06 Others To be mentioned 4 C.A. (R/I) 08/2016 B O I -Vs- Million Garments (Pvt) Ltd To be mentioned zones, advertising vacant lands on availability for selection of investors for new investment projects 30 S.C. (SPL) LA 118/2018 Logiwiz Ltd -Vs- B O I & 03 Others (No claim from the BOI) For Support 5 L.T. Colombo 13/17/2019 S.Y. Nawaratne -Vs- B O I Fixed for Inquiry and assisting Competent Authority in transferring assets divested to the State. 31 H.C. (Civil) 59/2018 S.L.A. Ariyasena -Vs- B O I Pre-Trial 6 S.C (F/R) 455/2015 S.Y. Nawaratne -VS- B O I & 09 Others Arguments 32 D.C Colombo 50897/M Joint Liquidators of Bontex Lanka (Pvt) Ltd -Vs- B O I Arguments Services7 S.C. Appeal Rendered 53/2012 byJoint the Liquidators Department of Bonaventure Textiles (Lanka) Ltd -vs- BOI Arguments WP/HCCA/43/ 2015(F) The8 S.C. Technical Appeal 54/2012 ServicesJoint Department Liquidators of Bonaventureis mainly Apparels responsible Lanka (Pvt) for; Ltd -vs- Arguments BOI 33 C.A. (Writ) 132/2018 H.K.D. Amarasinghe & 03 Others -Vs- BOI & 06 Others To be filed Written Submissions 9 H.C. (Civil) 49/2011/CO Propack Shreiner (Pvt) Ltd -vs- Haikawa Industries (Pvt) Ltd Calling for further action • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, 34 L.T. Colombo 08/269/2019 S. Hector Fernando -Vs- B O I Laid by as there is a matter in High 10 D.C. Colombo DMR BOI -vs- Upasena Property Development (Pvt) Ltd Informed Shirathi Gunawardena (L.T. Colombo Court. 01262/13managed by BOI. Associates to take necessary steps 02/822/2018) to execute the writ 11 D.C. Colombo DMR Stirling Group Lanka (Pvt) Ltd For trial 35 C.A. (Writ) 310/2018 Ven. Agulugalle Siri Jinananda Thero -Vs- BOI & 51 Others Order reserved • 02244/2015 36 D.C. Negombo 8171/L E.M. Rathnadasa -Vs- B O I & S.A. Jayawickrama Calling 12 C.A (Writ) 444/2015 U.T.M.T Resort (Pvt) Ltd -VS- BOI Calling for further action • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. 37 D.C. Negombo 8172/L E.M. Rathnadasa -Vs- B O I & N.G. Amila Answer & Summons Returnable for 13 C.A (Writ) 465/2015 Edna Cocoa Products (Pvt) Ltd -VS- B O I & 02 Others Arguments 1st Defendant 38 S.C. (SPL) LA 126/2019 Conservator General of Forests & 04 Others -Vs- B O I & 01 Other Notice Returnable 14 • H.C.Determination (Civil) 56/2016/CO of M.I.K.infrastructure Perera -Vs- Lumiere to be Textiles provided Ltd & 06 Othersto the Zones. Calling 39 C.A. (Writ) 303/2019 W.D.H.R.S. Kumara -Vs- Central Environmental and 05 Others Arguments 15 C.A. (Writ) 386/2016 Asiri Surgical Hospitals PLC -Vs- B O I & 02 Others The 2nd Respondent (BOI) and • Petitioner to inform the Court by 40 S.C. (SPL) L.A. 232/2019 Upali Ananda Gunasinghe -VS- B O I & 06 Others For Support way of a motion if any settlement and handing over of operation of Zones to Zone Management Units. 41 M.C. Hambantota 51116/19 Complaint mady by BOI against R.M.K. Prasanna Kumara Last Date: 21.11.2019; Allianz is reached, if not parties to file Undertaking initial development work of new investment zones, establishment of zone offices insurance has not informed their final Written Submissions position regarding the estimate for • Providing assistance and technical inputs for special investment projects with regard to land the construction yet 16 S.C. (SPL) L.A. 182/2017 R.A. Dharmadasa -Vs- B O I For Support 42 M.C. Attanagalla 65190 Complaint mady by BOI against I.P.A. Sirithilake Fixed for Inquiry matters and provision of infrastructure. 17 C.A. (Writ) 307/2008 MTV Channel (Pvt) Ltd -vs- Director General of Customs & 03 Arguments Others 43 D.C. Colombo DSP W.K. Galagoda -Vs- Director General, (BOI) & 06 Others Answer to be filed 18 • H.C. (Civil) 36/2012/CO Mac Supply Chain Solutions (Pvt) Ltd (Petitioner) and now Lincon Calling for further action 169/2019 Chandrasoma Piyasena (Re-Liquidator of Capital Consolidated 44 M.C. Warakapola - 45 BOI vs. 45 Squatters (Thulhiriya) All cases concluded (45 cases) establishment of anLanka integrated (Pvt) Ltd.) -vs- solid Star Clothing waste International management (Pvt) Ltd & project/industrial2 park and recycle of cases Preparation of proposals,Others identification of sites, obtaining necessary approvals for the 19 D.C.water Gampaha and 2165/L wastewaterM.M.M. systemsSmyle -vs- BOI within the Zones. Trial 45 H.C. (RA) 126/2019 S. Hector Fernando -Vs- BOI Objections and Proxy to be filed

20 ICC Arbitration 18656/CYK Sevanagala Sugar Industries Ltd -vs- BOI Pending 46 C.A. (Writ) 486/2019 N.D. Yasas Sri Nagashena -Vs- B O I & 10 Others Objections to be filed. To be • Providing technical support for infrastructure development work carried out by the existing mentioned for amended caption 21 H.C. (Civil) 579/2016 MR D.P. Jayasinghe Pilling Company (Pvt) Ltd -Vs- BOI & 02 Others No relief has been sought from Export Processing Zones/Industrial Parks as and when requested.BOI. BOI has been made a party for Notice Purpose only. • Providing technical support for operation and maintenance of water supply, wastewater and 22 C.A. (Writ) 112/2015 Centre for Environmental Justice (Guarantee) Limited -Vs- BOI & Judgement to be Delivered solid waste management07 Others schemes of existing Export Processing Zones/Industrial Parks. 23 S.C (F/R) REF 57/2017 Centre for Environmental Justice (Guarantee) Limited & 04 Others No relief has been sought from -Vs- Director General (BOI) & 16 Others BOI. BOI has been made a party • Inspection & making recommendations on technical aspects forfor the Notice industrial Purpose only. parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 78 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 79 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. • Determination of infrastructure to be provided to the Zones. Report of the • and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Auditor General • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. 2019 • establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 81 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual Report 2019 - Board of Investment of Sri Lanka - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 83 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 84 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 84 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 85 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 86 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 86 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 87 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 88 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 88 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 89 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 90 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 90 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 91 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 92 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 92 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 93 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 94 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 94 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 95 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 96 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 96 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 97 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 98 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 98 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 99 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 100 - - 27 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. The Reply of the BOI for • Determination of infrastructure to be provided to the Zones. the Report of • and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land the Auditor General matters and provision of infrastructure.

• 2019 establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 100 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 101 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 102 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Report of the Auditor General on the Financial Statements and Other Legal and BOI. Regulatory Requirements of the Board of Investment of Sri Lanka (BOI) for the year ended 31 December 2019 in terms of Section 12 of the National Audit Act, No. 19 of 2018 Key functions of the department are; establishment of new Investment Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in 1.2 Basis for Qualified Opinion zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State. (a) Non-compliance with Sri Lanka Accounting Standards (LKAS)

Services Rendered by the Department (i) LKAS 40 – Investment Property

The Technical Services Department is mainly responsible for; Noted to adjust it in year 2020. If we are permitted it could be adjusted in year 2019. • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI. (ii) LKAS 16 – Property, Plant and Equipment (PPE) • §. Residual Value & Useful Life • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Board has adopted the cost model as its accounting policy to recognize entire • Determination of infrastructure to be provided to the Zones. class of property, plant & equipment. After recognition of an asset, items of property, plant & equipment are carried at its cost less any accumulated • depreciation. and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices The Board has 23,574 items of assets under property, plant & equipment. • Providing assistance and technical inputs for special investment projects with regard to land Total value of property, plant & equipment excluding land is Rs.8,948,132,151/-. The book value of the fully depreciated assets is matters and provision of infrastructure. Rs.247,381,843/-. The residual value of a property of an item of PPE is currently obtained when the property is disposed or auctioned. This is due to • the complexed structure and the integration of parts and components establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the connected with main subcategories of the assets, and asset volume of the water and wastewater systems within the Zones. BOI.

• Providing technical support for infrastructure development work carried out by the existing In practice, many of the PPE items have a negligible residual value when Export Processing Zones/Industrial Parks as and when requested. compared to the book value of the PPE. The residual value of PPE are not relevant as the entity intends to keep the asset throughout its useful life. The • Providing technical support for operation and maintenance of water supply, wastewater and useful life of an asset is estimated based on industry norms and main benefits arising from the asset and it is not based on the potential life of the asset. solid waste management schemes of existing Export Processing Zones/Industrial Parks. Further, the Board’s existing policy on motor vehicles and computers will be • Inspection & making recommendations on technical aspects for the industrial parks which have reviewed during the year 2020 but the impact of the results of the review on depreciation would be negligible & not be material.

Board of Directors of BOI. BOI has disclosed significant accounting policies relating to each class of property, plant & equipment as per LKAS 16. Auditor’s observation is based Page 1 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 102 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 103 - 8. Technical ServicesBOARD Department OF INVESTMENT OF SRI LANKA

zones, advertising vacant lands on availability for selection of investors for new investment projects However a dividend is paid annually by the (i) Noted to adjust it in year 2020 as a prior year adjustment. If we are permitted it Board to the General Treasury on their request. and assistingcould Competent be adjusted Authority in year in 2019. transferring assets divested to the State. (b) Section 11 of Finance Act, No. 38 of A copy of the approval granted by the Ministry

1971 - Invested has already been handed over to the Services Rendered by the Department Rs. 17,136,814,477/- without the Government Audit Branch on 06.07.2020. (ii) Vesting of the land situated in Bingiriya which has been granted in favour of approval of the appropriate Minister The Technicalthe Services Board by Department Extra Ordinary is mainly Gazette responsible (No. 2126/12 for; of 03 June 2019) cannot be (c) Financial Regulations 770(2) of The redundant items those were stacked in the Sir capitalized, until the Vesting Order is signed by the H. E. the President, which Democratic Socialist Republic of Sri Baron Jayathilaka building were disposed to • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Lanka - Disposed fixed assets facilitate the decision of the Board of Directors. The is still pending. without the approval of the Board has decided to lease out the entire building for managed by BOI. Accounting Officer a 10 year period and the Investor informed the BOI Action will be taken to obtain the Vesting Order expeditiously and to take into to clear & handover the building to commence the • books in the financial year 2020. renovation of the building. Therefore, all unused/discarded items were disposed by following • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. the procurement process. (iii) According to the letter dated 2nd October 2019 of the Secretary, Ministry of (d) Paragraph No. 06(b) of the Public BOI has been disposing uneconomical vehicles in • DeterminationDevelopment of infrastructure Strategies & to International be provided Trade to the, it Zones. is clearly stated that the said Finance Circular No. 02/2015 of 10 successive stages with the approval of the Board of amount will be reimbursed subject to the receipt of funds from the General July 2015 - Final decision on the Directors. The need of implementing cost effective • disposal of motor vehicles had not management system of the vehicle fleet was Treasury under the approved allocation for the year 2019. been obtained from the CAO of the discussed at both the BOI and Ministry Audit and and handing over of operation of Zones to Zone Management Units. Line Ministry Management Committee meetings. UndertakingNoted initialto adjust development it in year 2020 work as ofa priornew yearinvestment adjustment. zones, If weestablishment are permitted of, zone offices The chief accounting officer was informed on the • Providingit could assistance be adjusted and intechnical year 2019. inputs for special investment projects with regard to land vehicle disposal process of BOI at the audit and

matters and provision of infrastructure. management committee meetings.

(e) Public Enterprises Circular No. PED The basic criteria for bonus had been as follows; 03/2019 of December 2019 – Paid • (i) The Organization should earn profit (c) Unavailability of Evidence for Audit annual bonus without the approval establishment of an integrated solid waste management project/industrial park and recycle of of the General Treasury (ii) The approval of the Board of Directors should be Preparation of proposals, identification of sites, obtaining necessaryst approvals for the waterBOI andis not wastewater in possession systems of the within deferred the Zones.expenditure details prior to 01 January obtained for the payment of bonus 2016. However, this issue was discussed at a previous Audit Committee Meeting (iii) The annual accounts of the organization should • Providingand it was technical agreed to support maintain for a registerinfrastructure for deferred development expenditure work and carriedthat action out has by the existing be submitted to the Auditor General on or before the due date Exportalready Processing been taken Zones/Industrial by BOI. Parks as and when requested. (iv) Provisions are not provided by the Treasury for • Providing technical support for operation and maintenance of water supply, wastewater and the payment of bonus As the BOI has fulfilled the above criteria and solid waste management schemes of existing Export Processing Zones/Industrial Parks. having considered the net surplus for the 09 months 2 Report on Other Legal and Regulatory Requirements ended on 30.09.2019, the Board of Directors at its th • Inspection & making recommendations on technical aspects for the industrial parks which have 410 meeting held on 29.10.2019 has granted Reference to Laws, Rules and approval to pay Rs. 60,000/- or one and half month’s salary whichever is higher for the permanent Regulations or Directions issued Clarification employees and Rs. 60,000/- for contract employees • Aencountereddvertisingby the governing vacant environmental lands body in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation of the BOI as the bonus for the year 2019. However, (a) Sec. 10 (5) of the Finance Act, No. through Land Allocation Committee followedBOI is entrusted by the approvalswith development of Screening initiatives Committee and Secretary to the Ministry of Industrial Export & 38 of 1971 – Not remitted the Net such as setting up of new Export Processing Investment Policy has suggested by his letter dated BoardSurplus of Directors to the Consolidated of BOI. Fund Zones under National Budget Proposals while uplifting the infrastructure facilities of existing Page 3 of 24 Page 2 of 24

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The Technical Services Department is responsible for the overall control of Action Plan for BOARD OF INVESTMENT OF SRI LANKA infrastructureon development paragraph 79 pertaining of LKAS to 16. Export We will Processing take necessary Zones andaction Industrial to disclose Parks in managed by BOI. year 2020. Reference to Laws, Rules and Regulations or Directions issued Clarification by the governing body Key functions of the department are; establishment of new Investment Zones, providing technical Zones operated under the BOI and such inputs(b) Accountingfor construction, Deficiencies operation, maintenance and determination of infrastructure facilities in initiatives are totally funded by the BOI. zones, advertising vacant lands on availability for selection of investors for new investment projects However a dividend is paid annually by the (i) Noted to adjust it in year 2020 as a prior year adjustment. If we are permitted it Board to the General Treasury on their request. and assistingcould Competent be adjusted Authority in year in 2019. transferring assets divested to the State. (b) Section 11 of Finance Act, No. 38 of A copy of the approval granted by the Ministry

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Services(f) RenderedSection 02 of by the the Public Department Enterprise In the year 2003, the Board of Directors of the BOI In order to achieve its objectives, the BOI should have highly qualified and Circular No. PED 1/2015 (i) of 27 has decided to pay Rs.15,000/- monthly allowances motivated staff. To motivate & retain the existing staff in the organization as well as October 2016 – Drivers’ allowance for a hired Driver in lieu of a BOI Driver. The The Technical Services Department is mainly responsible for; to attract highly qualified staff to the organization, BOI salary scales were higher paid to officers Board had taken the decision to pay for hired drivers aiming to utilize the BOI Drivers for project when compared to those in the public service and other state owned organizations at • Overall control of Action Plan for infrastructureinspections, monitoring, development and otherpertaining necessary to EPZs, IPs, etc, the time of its establishment. In addition, various allowances/ payments were managed by BOI. transport activities. Also the decision for payment of approved for BOI employees by various authorities from its inception (e.g. H.E the hired drivers has a considerable cost impact President, Secretary to the Treasury, Board of Directors, Government Circulars, etc.) and the said allowances/ payments being continued. Further, the approval of the • beneficial to the BOI. Since this payment prevailed at the same rate for 15 Minister of the Line Ministry has been requested for the above allowances/payments in May 2019 and the further details requested by the Ministry has been submitted in • PlanningIdentification and developmentof sites for new of newinvestment investmentyears, zones/projects.the Board zones. has decided to increase the rate in the year 2019. The Board took the decision for hired October 2019. drivers in the year 2003. • Determination of infrastructure to be provided to the Zones. §. Transport Subsidy (g) Financial Regulation 104(3) and BOI prepares the preliminary reports on vehicle

• 104(4) – Preliminary and full reports accidents, however due to the practical reasons given relating to vehicle accidents had not below the preliminary reports were not prepared in Approval of the Board of Directors was granted for the Transport Allowance at and handingbeen submitted over of operation of Zonesthe yearto Zone 2019 .Management Units. its meeting held on 06.11.1990. Former President & then Minister of Finance Undertaking initial development work of new investment zones, establishment of zone offices Mrs. Chandrika Bandaranaike Kumaratunga has granted approval for the The vehicle accidents during the year 2019 were • Providing assistance and technical inputs for special investment projects with regard to land Transport Allowance on 08.11.1996. Further, the above Transport Allowance very minor nature and those were occurred due to was included in to the Human Resource Policy Manual of the BOI which was matters and provision of infrastructure.the fault of other drivers and hit rear side of the BOIboi vehicles. In many occasions at the time of the approved by the Board of Directors on 20.03.2007. Approval for the Human accident an officer/officers were traveling in the Resources Policy Manual of the BOI was requested from the Department of • vehicle, and most cases transport officer had Public Enterprises on 10.03.2014. In addition, Hon. Minister’s approval has been establishment of an integrated solid inspectedwaste management the place of the project/industrial accidents. As the cause park for and recycle of requested in May 2019. Preparation of proposals, identificationthe accidents of sites, were clear, obtaining then officers necessary came in approvalsto a for the water and wastewater systems withinconclusion the Zones. that no needs to proceed on inquiry. Further, in all possible occasions BOI had made §. Key Performance Payment & Leave Encashment Allowances • Providing technical support for infrastructurecomplaints at developmentnearest police stations. work carried out by the existing Export Processing Zones/Industrial ParksBOI follows as and whenthe conditions requested. stipulated in the Attendance Incentive Scheme operated in the BOI was approved by the Board of Financial Regulation 104(3) and 104(4). A Directors on 06.11.1990 and approved by the Former President & then Minister • Providing technical support for operationCommittee and had maintenance been appointed of comprising water supply, Director -wastewater and of Finance Mrs. Chandrika Bandaranaike Kumaratunga on 08.11.1996. It had Finance, Director - Internal Audit, and Director - been replaced by the Key Performance Payment (KPP) Scheme which evaluates solid waste management schemes of Technicalexisting ExportServices Processingto inquire the Zones/Industrial vehicle accidents Parks. employee’s punctuality, accomplishments and personal traits as per the COPE and to recover the cost to the BOI. directives. Said KPP Scheme has been approved by the Board of Directors on • In(h)spection Sec. 8.3. &9 making and 9.4 ofrecommendations PED Circular Arrangements on technical will aspects be taken for the to industrialrecover the parks which have 29.10.2013. Approval for the Key Performance Scheme was requested from the No. 12 dated 02.06.2003 - expenses with regard to the released employees, Department of Public Enterprises by letter no. EC/12/EST/192 dated 03.06.2014 Released 07 employees to the from the respective Ministry. and they have referred this matter for the observation of Department of • AencountereddvertisingMinistry vacant environmentalof Industrial lands inExport Zones issues & on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Management Services by letter no. PE/NBE/BOI/PR dated 19.06.2014. In Investment Promotion without addition, Hon. Minister’s approval has been requested in May 2019. throughobtaining Land proper Allocation approval Committee followed by the approvals of Screening Committee and Board of Directors of BOI. Page 4 of 24 Page 5 of 24

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The Technical ServicesBOARD Department OF INVESTMENT is responsible OF for SRI LANKA the overall control of Action Plan for BOARD OF INVESTMENT OF SRI LANKA infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. Encashment of unutilized leave was compiled in the BOI leave regulations and commitment to the assigned duties. As the BOI is a profit making organization approved by the Board of Directors on 11.12.1979. Further, the above leave and has a self-fund to bear the cost incurred on its employees amidst transferring Key functionsencash ofment the was department comprised inare; to theestablishment Human Resource of new Policy Investment Manual of theZones, BOI providing technical funds to the Treasury as well, it is desired to implement such incentive schemes which was approved by the Board of Directors on 20.03.2007. Approval for the to reward its employees for their commitment and loyalty. Accordingly, the inputs forHuman construction, Resources operation,Policy Manual maintenance of the BOI was and requested determination from the Departmentof infrastructure facilities in Board of Directors at its meeting held on 18.03.2019 has granted approval for zones, advertisingof Public Enterprises vacant lands on 10.03.2014on availability. In addition, for selection Hon. Minister’sof investors approval for new has investment projects payment of Special Incentive Allowance for the BOI staff in April 2019. In been requested in May 2019. addition, Hon. Minister’s approval has been requested in May 2019. and assisting Competent Authority in transferring assets divested to the State.

Services§. Hardship Rendered Allowance by the Department (b) & (c) Staff Loans

The TechnicalManagement Services of Department the BOI had is decided mainly responsibleto pay a Hardship for; Allowance to the All the Loan Schemes of the BOI were implemented from its inception with the employees attached to Mirijjawila EPZ considering the difficulties they have to approval of the Board of Directors and the said benefits are being enjoyed by the • Overallencounter control being of employeesAction Plan at thefor particularinfrastructure Zone. Approvaldevelopment of the pertaining Board of to EPZs, IPs, etc, employees to-date. managedDirectors by BOI.was granted for the Hardship Allowance at its meeting held on 13.05.2016. In addition, Hon. Minister’s approval has been requested in May Subsequently, the said all loan schemes were included in to the Human Resource 2019. Policy Manual of the BOI which was approved by the Board of Directors on • 20.03.2007. Approval for the Human Resources Policy Manual of the BOI was requested from the Department of Public Enterprises on 10.03.2014. • PlanningIdentification§. Special and Allowance developmentof sites for for Additional new of newinvestment Wor investmentk zones/projects. zones.

• DeterminationSeveral employees of infrastructure were paid special to be allowancesprovided to for the the Zones. additional work which §. Thirty three (33) Procurement Activities not completed during the year they have performed in addition to the duties in their substantive posts • shouldering various additional duties & responsibilities. It was cost beneficial to Detail responses of Procurement Activities completed during the year are given and thehanding organization over of paying operation an additional of Zones allowance to Zone rather Management than deploying Units. additional in Annexure I. Undertakingstaff for the initial said purposes. development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land

matters§. Risk andAllowance provision of infrastructure. 3. Other Audit Observations

• Risk Allowance was paid to Shroffs to compensate for their risk involved in cash (a) Management and Operating Activities establishmenthandling. Director of an integrated General has solid granted waste approval management for the project/industrial risk allowance on park and recycle of Preparation01.05.1995. of proposals, identification of sites, obtaining necessary approvals for the (i) BOI has taken actions to regularise the agreements and the details of 65 water and wastewater systems within the Zones. premises at SEPZ, KgEPZ, KEPZ, WEPZ and KIP are shown below;

• Providing§. Special technicalAllowance supportfor the Officials for infrastructure holding posts developmentof Executive Category work carried out by the existing No. of EPZ / No. of Name of the Annual Square Rent Clarifications / Reasons Export Processing Zones/Industrialth Parks as andth when requested. IP Stalls Lessee Board of Directors at its 325 meeting held on 07 July 2015 has approved the Feet (Rs.) payment of the Special Allowance to the Executive Staff comprising Junior, • Providing technical support for operation and maintenance of water supply, wastewater and Agreement signed. Middle and Senior Managers as per the Public Administration Circular No. SEPZ 01 812 Bank of Ceylon 487,200 th solid18/2015 waste ofmanagement 26 June 2015. schemes of existing Export Processing Zones/Industrial Parks. 01 415 American Efired 268,090 Awaiting to sign Agreement. Lanka (Pvt) Ltd • Inspection & making recommendations on technical aspects for the industrial parks which have §. Special Incentive Allowance 01 150 Family Planning 90,000 Association

01 - Avissawella Tea 49,034 In terms of the records available, • AencountereddvertisingAchieving vacant environmentalof the landsorganizational in Zones issues targets on and availability conflictsis a combined in and respect effort select of suitable BOIpublic employees concerns. investors by an evaluation Factory Stall BOI has executed Lease Agreements who made their contribution from bottom to top level. Therefore, paying of an for the plots of land leased out to the throughIncentive Land Allowance Allocation especially Committee during followed the April byfestival the approvalsseason is a motivatingof Screening Committee and company situated at SEPZ. Boardfactor of Directorsaiming to ofkeep BOI. the employees’ morale continuously to get their fullest However, the company has not yet Page 6 of 24 Page 7 of 24

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Services§. Hardship Rendered Allowance by the Department (b) & (c) Staff Loans

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matters and01 provision 512.50 of infrastructure.W.L.M. 80,850 Number of projects Maduranga • 01 517.50 W.L.M. Agreement cancelled 68,310 Maduranga Projects Suspended/ Suspended/ closed establishment of an integrated solid waste management project/industrial park and recycle of Directly closed in the given in a previous year Preparation of proposals, identification of sites, obtaining necessary approvals for the Year Suspended Closed Agreement Total waterKEPZ and wastewater36 23994 systems Plaza Buildingwithin the Zones.17,874,948 The lease agreements of some leased year and Agreement and Agreement Cancelled in out premises/ extension were not Cancelled in the cancelled in given 12 4612 Commercial 1,497,225 the given year signed with the relevant lessees given year year • Providing technical supportstalls for at infrastructurethe Bus developmentand arrangements work carriedhave already out been by the existing Export Processing Zones/IndustrialTerminal Parks as and whenmade requested. with the Legal Dept. to sign 2019 27 20 36 1 103 140 the outstanding leased agreements 2018 4 7 28 11 117 156 04 442 Commercial 454,500 with relevant parties. • Providing technical supportStalls for at operationthe and maintenance of water supply, wastewater and 2017 3 6 16 16 122 154 Aweriwatta solid waste management schemes of existing Export Processing Zones/Industrial Parks. 2016 3 6 9 12 58 79 Junction 2015 2 12 7 3 13 23 • InWEPZspection &01 making 780 recommendations Family Planning on technical70,200 aspectsDraft Agreement for the sent industrial to the relevant parks which have Association of party which has not been signed yet. Sri Lanka Above table clearly depicts that, out of 140 projects agreement Total 65 69354.32 26,080,283 cancelled in 2019, only 36 projects have been identified as projects • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Suspended/ closed in 2019 and Agreement Cancelled in 2019. Further

through Land Allocation Committee followed by the approvals of Screening Committee and there is one projects directly agreement cancelled in 2019. The balance 103 projects were suspended/closed in previous years and agreement Board of Directors of BOI. Page 8 of 24 Page 9 of 24

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The Technical Services DepartmentBOARD OF is INVESTMENT responsible OF for SRI LANKA the overall control of Action Plan for BOARD OF INVESTMENT OF SRI LANKA infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. No. of (ii) Progress of projects implemented under section 17 of the BOI Law EPZ / No. of Name of the Annual Square Clarifications / Reasons IP Stalls Lessee Rent Key functions of the departmentFeet are; establishment(Rs. ) of new Investment Zones, providing technical §. Absence of an attractive tax incentive regime from June 2016 to April 2018 resulted in the decrease in attracting investment projects. Even inputs for construction, operation, maintenance and determinationsubmitted the of infrastructureoriginal Lease facilities in Agreement for records. Follow up though a new investment incentive regime was introduced in April zones, advertising vacant lands on availability for selectionactions of investors have been for taken. new investment projects 2018 under the new Inland Revenue Act no 24 of 2017, the projects and assistingKIP Competent01 617 Authority Bank in of transferring Ceylon 264,000 assets divestedA medium to term the lease State. requested (for attracted under this scheme needs considerable time period to 10 years) by the BOC could not be commence commercial operation. implemented due to technical Services Rendered by the Department reasons and the fresh draft agreement In addition, Projects get delayed to start its commercial operation due for a period of three years The Technical Services Department is mainly responsible for;commencing from 01.05.2018 has to various reasons beyond the control of the BOI, as the investors need been forwarded to the BOC and the to get various approvals such as land clearance, Environmental • Overall control of Action Plan for infrastructure developmentagreement is still pertaining pending. to EPZs, IPs, etc, clearance, UDA, Local Government etc. prior to commencement of KGEPZ 01 17563 Koggala 2,318,316 Sent a letter dated 10.06.2020 to operations. managed by BOI. Garments (Pvt) settle the amount immediately and Ltd hand over the premises back to BOI. §. As per the instructions of the Ministry of Finance and the Board • Decision taken to accelerate the process to identify projects which were 01 17603 Intifarm (Pvt) 2,323,596 Terminated. Approval has been not implemented and held up for a long period of time without • PlanningIdentification and developmentof sites for newLtd of newinvestment investment zones/projects. zones.given to Lalan Rubbers (Pvt) Ltd to take the said premises on lease. realization of investments and the agreements with such projects were 01 200.07 Expo Lanka (Pvt) Draft agreement prepared and lessee cancelled accordingly, as those projects blocked developed lands which 84,029 • Determination of infrastructureLtd to be provided to thehas Zones. been informed to coordinate with can be used for new projects. Legal Department to an action to 01 618.75 W.L.M. • 81,675 sign the agreement. This action was initially taken in 2013 and continued. As a result, the Maduranga and handing over of operation of Zones to Zone ManagementAwaiting Units.to signing on dates number of cancelled projects in 2015 - 2019 shows an increased value. Undertaking01 initial 517.5 development W.L.M. work of new investmentmutually zones, convenient establishment to both parties. of zone offices 68,310 • Providing assistance and technicalMaduranga inputs for special investment projects with regard to land The explanatory table is given below; matters and01 provision 512.50 of infrastructure.W.L.M. 80,850 Number of projects Maduranga • 01 517.50 W.L.M. Agreement cancelled 68,310 Maduranga Projects Suspended/ Suspended/ closed establishment of an integrated solid waste management project/industrial park and recycle of Directly closed in the given in a previous year Preparation of proposals, identification of sites, obtaining necessary approvals for the Year Suspended Closed Agreement Total waterKEPZ and wastewater36 23994 systems Plaza Buildingwithin the Zones.17,874,948 The lease agreements of some leased year and Agreement and Agreement Cancelled in out premises/ extension were not Cancelled in the cancelled in given 12 4612 Commercial 1,497,225 the given year signed with the relevant lessees given year year • Providing technical supportstalls for at infrastructurethe Bus developmentand arrangements work carriedhave already out been by the existing Export Processing Zones/IndustrialTerminal Parks as and whenmade requested. with the Legal Dept. to sign 2019 27 20 36 1 103 140 the outstanding leased agreements 2018 4 7 28 11 117 156 04 442 Commercial 454,500 with relevant parties. • Providing technical supportStalls for at operationthe and maintenance of water supply, wastewater and 2017 3 6 16 16 122 154 Aweriwatta solid waste management schemes of existing Export Processing Zones/Industrial Parks. 2016 3 6 9 12 58 79 Junction 2015 2 12 7 3 13 23 • InWEPZspection &01 making 780 recommendations Family Planning on technical70,200 aspectsDraft Agreement for the sent industrial to the relevant parks which have Association of party which has not been signed yet. Sri Lanka Above table clearly depicts that, out of 140 projects agreement Total 65 69354.32 26,080,283 cancelled in 2019, only 36 projects have been identified as projects • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Suspended/ closed in 2019 and Agreement Cancelled in 2019. Further through Land Allocation Committee followed by the approvals of Screening Committee and there is one projects directly agreement cancelled in 2019. The balance 103 projects were suspended/closed in previous years and agreement Board of Directors of BOI. Page 8 of 24 Page 9 of 24

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The Technical ServicesBOARD Department OF INVESTMENT is responsible OF SRI LANKA for the overall control of Action Plan for BOARD OF INVESTMENT OF SRI LANKA infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. cancelled in 2019 as a result of the expedite process followed by BOI §. Perth Estate Maputugala, Horana leased out to a Ayurvedic Medical to clear the backlog. Therefore, the actual number of agreement Institution Key functionscancelled of the department in 2019 is only are; 37 establishment and it is less ofthan new the Investment 60 projects thatZones, providing technical commenced commercial operation in the year 2019. Further, it should A Lease Agreement was executed for Lot 1, 4 and 6 (25A -2.5P) of inputs for construction,be noted that thisoperation, situation maintenanceprevails for the andother determination years given in the of audit infrastructure facilities in Plan No. 1066 dated 25th November 2001 made by L.N. Fernando at zones, advertisingquery vacantas well. lands It should on availability be noted that for cancellationselection of of investors projects fortakes new investment projects Perth Estate, Horana. The Enterprise mortgaged the land to People’s place after taking relevant actions for recoveries of dues and etc. Bank for Rs. 5 Mn on 30.11.2006. and assisting Competent Authority in transferring assets divested to the State.

matters and provision of infrastructure. (iv) Mortgaging leasehold rights §. Land at Mirigama Export Processing Zone (leased to a clothing company) • The Board of Investment (BOI) is mandated to attract investments with establishmentthe investors’ of an own integrated capital when solid such waste investor management is either local project/industrial or foreign. In park and recycle of The land had been included into a paper advertisement published by Preparationexceptional of proposals,situations, the identification BOI could consider of sites, permitting obtaining an investor necessary approvals for the water and wastewater systems within the Zones. the BOI (Technical Services Dept.) recently to call bids for the vacant who has obtained the BOI land on lease to mortgage the leasehold rights lands at the BOI zones. to meet the financial needs of such party. As a matter of practice, the BOI • Providing technical support for infrastructure development work carried out by the existing does not promote investors to raise financial facilities through local ExportBanks Processing by mortgaging Zones/Industrial the BOI land Parks leased as to and them. when requested. (b) Accounts Receivables and Payables • ProvidingOur technicalview is that support there are for sufficient operation controls and in maintenance the Tripartite ofAgreement water supply, wastewater and entered into among the investor, Bank and BOI in order to safeguard the solid waste management schemes of existing Export Processing Zones/Industrial Parks. (i) Accounts Receivables rights of the BOI. Under the Banking Act, in a situation where the bank carries out Parate execution where there is a default by the investor to the Noted. • InspectionBank, & the making Bank isrecommendations compelled to give notice on technical to the BOI. aspects for the industrial parks which have

We have obtained approval of the Board of Directors to write off the dues It should be noted that if the BOI had been aware of the performance of up to year 2012 and have submitted the details to the Line Ministry to the enterprises it would have been possible to intervene and take any • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation obtain approval of the Treasury. Further, Executive Director (Recoveries) action to protect the interests of BOI prior to these Enterprises going into has been appointed to follow up on dues accumulated since year 2013. throughLiquidation. Land Allocation Committee followed by the approvals of Screening Committee and

Board of Directors of BOI. Page 10 of 24 Page 11 of 24

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The BOI by letter dated 18th October, 2020 has terminated the Lease Services(iii )Rendered Attracted Foreignby the DepartmentDirect Investments Agreement for the above land due to non-compliance of the terms and conditions of the Principal Agreement. The Enterprise owes a The TechnicalBOI Services has set theDepartment targets for is2019, mainly based responsible on pipeline for; projects and exiting sum of Rs. 256,082.14/-. projects expecting these projects would bring the anticipated FDI. The • Overallset control target cannotof Action be achieved Plan for all theinfrastructure time as expected development due to unforeseen pertaining to EPZs, IPs, etc, The Enterprise has defaulted the dues on the mortgage of the managedexternal by BOI. shocks occurred which are beyond the control of BOI. leasehold rights and People’s Bank has notified BOI that a Parate Execution will be carried out, however there has been no successful Thus, political uncertainty prevailed from October 2018 to December • bidders at the auction. The bank therefore has held the leasehold 2019 and Easter Sunday attack which took place in April 2019 had a rights over the above land at Perth Estate, Horana since 2006. serious impact on 2019 FDI performance. This resulted in 53% decrease Furthermore, the bank has been looking for prospective buyers in • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.st during the first quarter, 61% decrease in the 1 Half and a 50% decrease order to transfer the leasehold rights of the land. in the whole year compared to year 2018. Further, the expected Inland • Determination of infrastructure to be provided to the Zones. Revenue amendments in April 2019 for the tax regime were not released The matter was taken up at the Screening Committee meeting held on yet, but only administrative decisions were given. 05.03.2018 and as per the decision, the said land was re-surveyed and • a valuation was obtained. and handingFurther, over 2018 of operationwas an exceptional of Zones toyear Zone as ManagementSri Lanka has Units. received UndertakingUS$ 828 initial Mn from development the Hambantota work Port of newtransaction. investment zones, establishment of zone offices Presently, the land is ready to be advertised for Request for Proposals • Providing assistance and technical inputs for special investment projects with regard to land from potential investors. matters and provision of infrastructure. (iv) Mortgaging leasehold rights §. Land at Mirigama Export Processing Zone (leased to a clothing company) • The Board of Investment (BOI) is mandated to attract investments with establishmentthe investors’ of an own integrated capital when solid such waste investor management is either local project/industrial or foreign. In park and recycle of The land had been included into a paper advertisement published by Preparationexceptional of proposals,situations, the identification BOI could consider of sites, permitting obtaining an investor necessary approvals for the water and wastewater systems within the Zones. the BOI (Technical Services Dept.) recently to call bids for the vacant who has obtained the BOI land on lease to mortgage the leasehold rights lands at the BOI zones. to meet the financial needs of such party. As a matter of practice, the BOI • Providing technical support for infrastructure development work carried out by the existing does not promote investors to raise financial facilities through local ExportBanks Processing by mortgaging Zones/Industrial the BOI land Parks leased as to and them. when requested. (b) Accounts Receivables and Payables • ProvidingOur technicalview is that support there are for sufficient operation controls and in maintenance the Tripartite ofAgreement water supply, wastewater and entered into among the investor, Bank and BOI in order to safeguard the solid waste management schemes of existing Export Processing Zones/Industrial Parks. (i) Accounts Receivables rights of the BOI. Under the Banking Act, in a situation where the bank carries out Parate execution where there is a default by the investor to the Noted. • InspectionBank, & the making Bank isrecommendations compelled to give notice on technical to the BOI. aspects for the industrial parks which have

Board of Directors of BOI. Page 10 of 24 Page 11 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 112 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 113 - 8. TechnicalBOARD Services OF Department INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

The Technical Services Department is responsible for the overall control of Action Plan for infrastructureWith a developmentview to expedite pertaining the recovery to Export process, Processing the Finance Zones Department and Industrial has Parks managed by to their failure to settle above outstanding despite the requests made by BOI. been instructed to handover the Annual Fee Invoices not settled by 31st the zone continuously. March each year, to the Recoveries Unit to follow up on the dues and to initiate action according to the terms and conditions of the Agreement. We Key functions of the department are; establishment of new Investment Zones, providing technical Several householders have left their places at the above scheme and some have submitted the details accordingly with effect from year 2020. have rented their houses for outside parties. Therefore it is difficult to inputs for construction, operation, maintenance and determination of infrastructure facilities in find their correct postal address to hand over letters. As a result of the zones, advertisingProvision for vacant impairment lands on on availability dues has been for selectionincreased of due investors to adoption for new of Sri investment projects efforts taken by the zone several persons agreed to settle their and assistingLanka Competent Financial Reporting Authority Standardsin transferring in 2012. assets Accounting divested to policy the State. adopted outstanding amounts in instalments. by the BOI for the provision for impairment is to provide 100% in respect However, due to the Covid-19 crisis they were unable to commence their Servicesof Rendered dues of cancelled by the Department/ closed / suspended projects and dues over two years. repayments. Now BOI has planned to get the assistance of Grama The TechnicalAccording Services to the Department present policy is mainly of the responsible BOI, all efor;nterprises who operate Niladari of the area to find the postal addresses of those persons who outside the BOI Zones which are not in arrears of annual fees and not have left the scheme and to meet the householders to recover these • Overallclosed, control suspended of Action or cancelled Plan for, areinfrastructure invoiced for development Annual Fees pertaining and the to EPZs, IPs, etc, outstanding before the end of this year. st managedinvoices by are BOI. sent to investors by 01 January each year irrespective of whether they will obtain services or cancel / close / suspend the project If they fail to settle these outstanding further, this matter will be referred to the Legal Department of BOI to take Legal action. • during that particular year.

• PlanningIdentificationCurrent and averag developmentof sitese recovery for new of rate newinvestment of investmentthe BOI zones/projects. is at zones. a higher level around 99%. HEPZ

• DeterminationDetails relating of infrastructureto the past 4 years to be are provided as follows: to the Zones. Water income dues from enterprises as at 31.12.2019 was

Rs. 11,789,145/18 and out which Rs. 11,532,775/69 belonging to year • 2019 were from current enterprises and customers and only Rs. and handing over of operation2019 of Zones to Zone2018 Management 2017 Units. 2016 Undertaking initial development work of new investment zones, establishment of zone offices 256,613/93 pertains to year 2018 and above period. (Rs. Mn.) (Rs. Mn.) (Rs. Mn.) (Rs. Mn.) Invoices• Providing issued for assistance the and technical inputs for special investment projects with regard to land Following actions have been taken on those long outstanding balances; matters respective and year provision of infrastructure. 5,628 4,855 4,644 4,450 Name of Agreement Total Invoices of the respective year Enterprise/ Actions Taken & Remarks • No. (Rs.) not settled to date 306 48 29 29 Customer establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the W13491 RPC Polymers 45,568/48 Sent a reminder; agreed to Recoverywater rate and of thewastewater respective systems year 94%within the Zones. 99% 99% 99% (Pvt) Ltd settle in 02 weeks st Note:• Providing The amounts technical shown support as dues for as infrastructure at 31 December development 2019 on accountwork carried of rent, out by the existing W94017 B503 – Krishantha 59,719/50 Sent a reminder, but failed to water, waste water, solid waste etc., represent the value of invoices issued Sampath recover. Disconnected water Exportin respect Processing of December Zones/Industrial 2019 and Parksthose asinvoices and when are usuallyrequested. settled during connection line from the months of January & February of the following year. January 2018. • Providing technical support for operation and maintenance of water supply, wastewater and To be taken legal action. solid waste management schemes of existing Export Processing Zones/Industrial Parks. W02032 Housing & 133,751/67 Terminated agreement since §. Provision for Impairment of Water Income Dues Construction 08.07.2016. • Inspection & making recommendations on technical aspects for the industrial parks which have Lanka (Pvt) Ltd To be taken legal action. WEPZ W94046 SAW Engineering 17,574/28 Agreed to settle within 01 (Pvt) Ltd week. • AencountereddvertisingAn amount vacant environmental of Rs.462,939.86lands in Zones issues hason and availabilityto conflicts be recover in and respected selectfrom of 22suitable public persons concerns. investors at the by an evaluation

throughHousing Land Scheme Allocation of WathupitiwalaCommittee followed for providing by the drinkingapprovals water of Screening by the Committee and

Board. Board of Directors of BOI. §. In the year 2003, BOI had decided to sell-off housing units at

Wathupitiwala Export Processing Zone (WEPZ) through a public At the moment, BOI does not supply drinking water for the scheme and auction. Selection of the auctioneer was made after giving publicity in a all water supply connections to the scheme have been disconnected due Page 13 of 24

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Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 114 - - 27 - 8. TechnicalBOARD Services OF Department INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

• PlanningIdentificationCurrent and averag developmentof sitese recovery for new of rate newinvestment of investmentthe BOI zones/projects. is at zones. a higher level around 99%. HEPZ

• DeterminationDetails relating of infrastructureto the past 4 years to be are provided as follows: to the Zones. Water income dues from enterprises as at 31.12.2019 was

Board. Board of Directors of BOI. §. In the year 2003, BOI had decided to sell-off housing units at

Page 12 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 114 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 115 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for

infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by paper advertisement and subsequent decision of the Procurement BOI. Committee. BOI had awarded the contract of auctioning houses at WEPZ The Secretary, Ministry of Development Strategies & International Trade to Dunstan Kelaart Auctioneer. The auction was completed successfully called a meeting on 22.10.2018, with the participation of the Secretary, Key functionsand the of biddersthe department who obtained are; housesestablishment had paid oftheir new advance Investment money Zones,to the providing technical Ministry of Public Enterprises & Kandy City Development and inputs forauctioneer. construction, However, operation, the au ctioneermaintenance had failed and todetermination deposit that amount of infrastructure to facilities in representatives from BOI, JEDB and SLSPC. the BOI. zones, advertising vacant lands on availability for selection of investors for new investment projects At the meeting, Secretary, Ministry of Public Enterprises & Kandy City and assistingThe CompetentBOI had made Authority effort into transferringget this amount assets of divestedRs. 1,604,200/ to the- State. to the Development agreed to look into the issue and take an appropriate BOI and the Legal Department of the BOI sent Letters of Demand to decision in consultation with JEDB. Services RenderedDunstan Kelaart, by the whereas Department the Letters of Demand were returned back as the business was closed and the owner had left the country. On As the BOI has already taken the issue to the Secretaries level, no other The Technicalinstructions Services of Department the Audit Committee, is mainly responsible the officers for; of the BOI met the option is available to recover the money. Director of the Fraud Investigation Bureau to check the possibility of • Overallfiling control a case ofagainst Action Dunstan Plan Kelaart.for infrastructure development pertaining to EPZs, IPs, etc, Ministry of Foreign Affairs managed by BOI. As per the directive given at the Audit Committee Meeting held on The Consular Affairs Division of Ministry of Foreign Affairs was housed • 05.08.2016, Legal Department of BOI has obtained the Attorney in the 3rd, 4th, 5th Floors of the BOI Building at Sir Baron Jayathilake General’s opinion on the above matter. The opinion received in this Mawatha on a Lease Agreement. A Vault room which was used by the • PlanningIdentificationregard and on development of06.08.2018 sites for new stated of newinvestment that investment “the respectivezones/projects. zones. period for filing action BOI was also at the 4th floor of the Building and the Key of the Vault has now expired and the BOI might not be successful in pursuing civil was not handed over to the Ministry of Foreign Affairs. Therefore, the • Determinationaction for money of infrastructure recovery against to be providedMr. Duns totan the Kel Zones.aart. However, if an Ministry had retained part of the rent until the key of the Vault was admission in respect of the dues is obtained from Mr. Dunstan Kelaart handed over to the Ministry. • through a Police statement or in response to a Letter of Demand, it may and handingbe possible over to ofovercome operation prescription of Zones toand Zone pursue Management legal action”. Units. Even though the Ministry was informed many times, a positive response Undertaking initial development work of new investment zones, establishment of zone offices was not received and now the Ministry of Foreign Affairs has left the • ProvidingAlthough assistance BOI tried and many technical times inputsand many for waysspecial to investmentfind whereabouts projects of with regard to land building. Dunstan Kelaart, the Auctioneer, all those efforts were not successful. matters and provision of infrastructure.

• Sri Lanka State Plantation Corporation (SLSPC) §. Receivable from Government Institutions establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Mr. R. B. Attygala, former Superintendent of Perth Estate had filed a waterJanatha and wastewater Estate Development systems withinBoard (JEDB)the Zones. case in the LT against SLSPC & BOI for unlawful termination of services claiming reinstatement / Rs. 8,644,683.10 as compensation. • ProvidingDiscussions technical have support been heldfor infrastructurepreviously to developmentrelease a land work situated carried in out by the existing Vauxhall Street, belonging to JEDB, to BOI for a Mixed Development Export Processing Zones/Industrial Parks as and when requested. Order was delivered by LT to pay Rs. 125,580.00 to Mr. Attygala. project. Accordingly, Secretary, Ministry of State Resources and Approval has been obtained from the Board on its 288th Meeting on • ProvidingEnterprise technical Development support forhas operation informed andthe maintenanceBOI by his ofletter water dated supply, wastewater and 14.02.2012 to deposit an amount of the Rs. 125,580/- at the office of 13.10.2014 that the amount due from JEDB will be set off when JEDB solid waste management schemes of existing Export Processing Zones/Industrial Parks. Assistant Commissioner of Labour / Panadura in favour of Mr. Attygala, property at No. 175, Vauxhall Street, Colombo 02 is released to BOI. without taking steps to appeal against the order of the LT. It has been

• Inspection & making recommendations on technical aspects for the industrial parks which have decided to request the SLSPC to reimburse the said amount to BOI. However as informed by the Investment Appraisal Dept. of BOI, the above said project has not been implemented yet, due to issues in the Legal Dept. of BOI has requested from SLSPC by their letter dated land releasing process. Therefore, BOI sent a reminder to JEDB on 12.06.2014 to reimburse the deposit. • Aencountereddvertising26.06.2018 vacant environmental requesting lands in to Zones issuespay the on and balance availability conflicts due amount. in and respect select of suitable public concerns. investors by an evaluation through Land Allocation Committee followed by the approvals of Screening Committee and Through letter dated 31.08.2018, Director General of BOI has made a Further, through letter dated 31.08.2018, Director General of BOI has Board of Directors of BOI. request to Secretary, Ministry of Development Strategies & International made a request to Secretary, Ministry of Development Strategies & Trade to take up this unresolved issue with the Ministry of Public International Trade to take up the unresolved issue with the Ministry of Enterprises & Kandy City Development and a meeting was held on Public Enterprises & Kandy City Development. 22.10.2018 by the Secretary, Ministry of Development Strategies & Page 14 of 24 Page 15 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 116 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by paper advertisement and subsequent decision of the Procurement BOI. Committee. BOI had awarded the contract of auctioning houses at WEPZ The Secretary, Ministry of Development Strategies & International Trade to Dunstan Kelaart Auctioneer. The auction was completed successfully called a meeting on 22.10.2018, with the participation of the Secretary, Key functionsand the of biddersthe department who obtained are; housesestablishment had paid oftheir new advance Investment money Zones,to the providing technical Ministry of Public Enterprises & Kandy City Development and inputs forauctioneer. construction, However, operation, the au ctioneermaintenance had failed and todetermination deposit that amount of infrastructure to facilities in representatives from BOI, JEDB and SLSPC. the BOI. zones, advertising vacant lands on availability for selection of investors for new investment projects At the meeting, Secretary, Ministry of Public Enterprises & Kandy City and assistingThe CompetentBOI had made Authority effort into transferringget this amount assets of divestedRs. 1,604,200/ to the- State. to the Development agreed to look into the issue and take an appropriate BOI and the Legal Department of the BOI sent Letters of Demand to decision in consultation with JEDB. Services RenderedDunstan Kelaart, by the whereas Department the Letters of Demand were returned back as the business was closed and the owner had left the country. On As the BOI has already taken the issue to the Secretaries level, no other The Technicalinstructions Services of Department the Audit Committee, is mainly responsible the officers for; of the BOI met the option is available to recover the money. Director of the Fraud Investigation Bureau to check the possibility of • Overallfiling control a case ofagainst Action Dunstan Plan Kelaart.for infrastructure development pertaining to EPZs, IPs, etc, Ministry of Foreign Affairs managed by BOI. As per the directive given at the Audit Committee Meeting held on The Consular Affairs Division of Ministry of Foreign Affairs was housed • 05.08.2016, Legal Department of BOI has obtained the Attorney in the 3rd, 4th, 5th Floors of the BOI Building at Sir Baron Jayathilake General’s opinion on the above matter. The opinion received in this Mawatha on a Lease Agreement. A Vault room which was used by the • PlanningIdentificationregard and on development of06.08.2018 sites for new stated of newinvestment that investment “the respectivezones/projects. zones. period for filing action BOI was also at the 4th floor of the Building and the Key of the Vault has now expired and the BOI might not be successful in pursuing civil was not handed over to the Ministry of Foreign Affairs. Therefore, the • Determinationaction for money of infrastructure recovery against to be providedMr. Duns totan the Kel Zones.aart. However, if an Ministry had retained part of the rent until the key of the Vault was admission in respect of the dues is obtained from Mr. Dunstan Kelaart handed over to the Ministry. • through a Police statement or in response to a Letter of Demand, it may and handingbe possible over to ofovercome operation prescription of Zones toand Zone pursue Management legal action”. Units. Even though the Ministry was informed many times, a positive response Undertaking initial development work of new investment zones, establishment of zone offices was not received and now the Ministry of Foreign Affairs has left the • ProvidingAlthough assistance BOI tried and many technical times inputsand many for waysspecial to investmentfind whereabouts projects of with regard to land building. Dunstan Kelaart, the Auctioneer, all those efforts were not successful. matters and provision of infrastructure.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 116 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 117 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by §. Retention money BOI. International Trade with the participation of the Secretary, Ministry of Public Enterprises & Kandy City Development and representatives from Information regarding projects of which the retention money had not Key functionsBOI, JEDBof the and department SLSPC. are; establishment of new Investment Zones, providing technical been claimed and the updates of those payments have been requested

inputs for construction, operation, maintenance and determination of infrastructure facilities in from the relevant zones and departments. After obtaining concurrence At the meeting, Secretary, Ministry of Public Enterprises & Kandy City from the relevant zones and departments, action will be taken to release zones, advertisingDevelopment vacant agreed lands to on look availability into the for issue selection and taofke investors an appropriate for new investment projects the amounts which can be released and others will be treated as an and assistingdecision Competent in consultation Authority with in SLSPC. transferring Similarly, assets BOI divested has no to other the State.option income in the accounts. available to recover the money. Services Rendered by the Department Further, action has been initiated to include a new clause in the particular conditions of contract specifying that, the retention money The Technical§. Mobilization Services Advances Department is mainly responsible for; should be claimed within six months from expiration of the defect liability period of the contract to avoid accumulating retention money • Overallú SEPZcontrol of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, without being claimed. managed by BOI. As per the Board Meeting No.358 held on 02.06.2016, the Board has Also, please note that action has already been taken during year 2019 to • approved to release 50% of the departmental estimate as a treat unclaimed Rs. 698,770/- pertaining to 03 contracts, as income in mobilization advance payment and the balance payment will be made the accounts. • PlanningIdentificationbased and on developmentof thesites progress for new of of newinvestment the iinvestmentmplementation. zones/projects. zones.

• DeterminationNWS&DB of infrastructure informed that to replacing be provided the tofilter the mediaZones. of rapid sand §. Receipts in Advance filters will commence in November 2020. • Noted and this also will be reviewed & adjusted in the financial year ú BEPZ and handing over of operation of Zones to Zone Management Units. 2020. Due to the applicability of the time bar, a creditor could make a Undertaking initial development work of new investment zones, establishment of zone offices claim within a period of 6 years. Hence, the receipts in advance are • ProvidingThe assistance contract was and awarded technical to inputsM/s KES for Engineering special investment (Pvt) Ltd projects for the with regard to land held at least for a period of 6 years before making any adjustment. sum of Rs. 83,980,002.87 in the year 2012 to Augmentation of mattersCommon and provision Waste of Water infrastructure. Treatment Plant (Building & Civil) at BEPZ. Mobilisation advance was made on the advance bond guarantee • received from construction guarantee fund. (c) Human Resources Management establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water andThe wastewater particular systemscontract withinwas terminated the Zones. on 19.04.2013 and the (i) BOI Cadre was approved by the Department of Management Services on advance bond guarantee was forfeited, whereas the construction 09.01.2007 with 13 Executive Directors including Executive Director • Providingguarantee technical fund support did not foraccept infrastructure the request anddevelopment matter is on work the judicial carried out by the existing (Engineering Approvals & Special Projects), Executive Director (Project process upto date. Export Processing Zones/Industrial Parks as and when requested. Monitoring) and Executive Director (Project Implementation). Revision of salaries under the Management Service Circular No. 30 dated 22.09.2006 Part of mobilization advance has been recovered by the interim bills was comprised with a revision of Cadre / Scheme of Recruitment and the • Providingand technical balance ofsupport Rs. 9,796,015.15 for operation is yetand to maintenance be recovered, of aswater per thesupply, wastewater and solid wasteBoard management Meeting No. schemes 347 dated of 05.04.2019. existing Export Processing Zones/Industrial Parks. revised cadre/ Scheme of Recruitment has been approved with 08 Executive Directors excluding Executive Director (Engineering Approvals • Inspection & making recommendations on technical aspects for the industrial parks which have & Special Projects), Executive Director (Project Monitoring) and Executive Director (Project Implementation). Subsequently, Executive (ii) Accounts Payables Director (Investor Services) has been approved resulting to a total of 09 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Executive Directors. Considering the exigency of service, the appointments §. Sundry Creditors were made for the posts of Executive Director (Engineering Approvals & through Land Allocation Committee followed by the approvals of Screening Committee and Special Projects), Executive Director (Project Monitoring) and Executive BoardNoted of Directors and will of be BOI. reviewed & adjusted in the financial year 2020. Due Director (Project Implementation) with the approval of Board of Directors. to the applicability of the time bar, a creditor could make a claim Therefore, the count of Executive Directors has exceeded the approved within a period of 6 years. Hence, the receipts in advance are held at cadre. least for a period of 6 years before making any adjustment. Page 17 of 24 Page 16 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 118 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by §. Retention money BOI. International Trade with the participation of the Secretary, Ministry of Public Enterprises & Kandy City Development and representatives from Information regarding projects of which the retention money had not Key functionsBOI, JEDBof the and department SLSPC. are; establishment of new Investment Zones, providing technical been claimed and the updates of those payments have been requested inputs for construction, operation, maintenance and determination of infrastructure facilities in from the relevant zones and departments. After obtaining concurrence At the meeting, Secretary, Ministry of Public Enterprises & Kandy City from the relevant zones and departments, action will be taken to release zones, advertisingDevelopment vacant agreed lands to on look availability into the for issue selection and taofke investors an appropriate for new investment projects the amounts which can be released and others will be treated as an and assistingdecision Competent in consultation Authority with in SLSPC. transferring Similarly, assets BOI divested has no to other the State.option income in the accounts. available to recover the money. Services Rendered by the Department Further, action has been initiated to include a new clause in the particular conditions of contract specifying that, the retention money The Technical§. Mobilization Services Advances Department is mainly responsible for; should be claimed within six months from expiration of the defect liability period of the contract to avoid accumulating retention money • Overallú SEPZcontrol of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, without being claimed. managed by BOI. As per the Board Meeting No.358 held on 02.06.2016, the Board has Also, please note that action has already been taken during year 2019 to • approved to release 50% of the departmental estimate as a treat unclaimed Rs. 698,770/- pertaining to 03 contracts, as income in mobilization advance payment and the balance payment will be made the accounts. • PlanningIdentificationbased and on developmentof thesites progress for new of of newinvestment the iinvestmentmplementation. zones/projects. zones.

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 118 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 119 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by All the excess employees in the Management Assistant Category & From the year 1995 to 2008 we adopted the Sanitary Land Filling System BOI. Primary Level Unskilled Category are Casual/ Contract basis employees to dispose the solid waste generated by the KEPZ and BOI had to bare who were absorbed into the permanent cadre on 01.09.2019 as per the around Rs. 1.2 million per month (including the Construction cost of Key functionsPublic of the Administration department are;Circular establishment No. 29/2019 of newdated Investment 18.09.2019. Zones, Initially, providing technical Cells). In addition nearly 20 acres had been allocated for this operation. inputs for construction,they were recruited operation, on short maintenance term basis andto be determination attended to essential of infrastructure day to facilities in day operations mainly in Export Processing Zones & Industrial Parks. On the Directives of the Management and following bidding procedures zones, advertisingMost of vacant the said lands Casual/ on availability Contract Management for selection Assistants of investors were for deployed new investment projects M/s Holcim Lanka ltd was awarded the new Service Contract in the year and assistingto CompetentPermit Offices, Authority Investor in Servicestransferring Units assets and other divested duty stationsto the State. where the 2008 for disposal of residual Solid waste after collecting waste by essential manpower requirements are needed. Further, several batches of collectors for re use and recycling, through the thermal destruction at their Services RenderedContract Securityby the Department Guards who were absorbed in to the permanent cadre as Cement Kilns at Putlam. It is also noted that the part of the total cost mentioned above had been deployed to Export Processing Zones & borne by the BOI has been recovered from the enterprises from the The TechnicalIndustrial Services Parks Department under theis mainly BOI asresponsible a key responsibility for; of protecting year 2008. Investors / BOI properties and the workforce as well as preventing possible • Overallillegal control actions of Action within thePlan Zones. for infrastructure development pertaining to EPZs, IPs, etc, In 2019 we have paid to the Insee Ecocycle Lanka (Pvt) Ltd the Subsidiary managed by BOI. of Holcim Lanka Ltd a Sum of Rs. 11.28 million for the Waste Disposal and we have collected Rs. 5.8Mn from the KEPZ enterprises But if we did • (ii) A committee was appointed to conduct a preliminary study in developing a not have this facility we have to spend around Rs. 1.2 Mn in each month Succession Plan and the committee report was presented to the which is 14 Mn per year. Therefore around 50% of the operational cost • PlanningIdentificationChairman and developmentof sitesand forDirector new of new investmentGeneral. investment zones/projects.Following zones. the decision to create have been saved while minimizing the fire hazardous situations and awareness on the importance of Succession Planning among Higher mitigating the environment pollution. It triggered the obtainment of EPL to • DeterminationManagerial of infrastructureOfficers an awareness to be provided programme to the was Zones. conducted by a well - the zone. It is also noted that the image of the Zone has been upgraded recognized Human Resource Specialist. Management is of the view that since we are applying the proper Waste management system which is • the succession plan should be prepared by a professional body or an marketed by our investors. The expenditure and the Charges recovered individual with experience and special expertise in the particular area. from the KEPZ enterprises in respect of the Solid Waste Disposal to Insee and handing over of operation of Zones to Zone Management Units. UndertakingAccordingly, initial thdevelopmente process of preparingwork of new a Succession investment Plan zones, is in progress. establishment of zone offices Ecocycle Lanka (Pvt) Ltd are given below; • Providing assistance and technical inputs for special investment projects with regard to land Statement of Charges Recovered from the KEPZ / Out Side matters and provision of infrastructure. enterprises in respect of the Solid Waste Disposal to Insee Ecocycle (d) Identified Losses Lanka (Pvt) Ltd Site • establishment(i) Solid Waste of an Disposal integrated cost solidof Katunayake waste management and Biyagama project/industrial Export Processing park and recycle of Year Weight in Rate Per Metric Tons Total Income (Rs.) Preparation of proposals, identification of sites, obtaining necessary approvals for the water andZones wastewater systems within the Zones. Metric Tons (Rs.)

2019 6783.90 855.00 5,800,234.50 • ProvidingThe technicalKatunayake support Export for Processing infrastructure Zone developmentwas set up in work1979 carriedand at theout by the existing inception the total cost for the disposal of Solid Waste which were Exportgenerated Processing by Zones/Industrial the enterprises Parksat KEPZ as and was when born requested. by the BOI as per the Payment made to the Insee Ecocycle Lanka (Pvt) Ltd for Disposal of Solid agreed conditions in the Agreement between the BOI and the respective Waste at KEPZ • Providinginvestment technical Project. support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks. Year Weight in Rate Per Metric Tons Total Paid (Rs.) We have adopted several disposal methods to dispose the waste generated Metric Tons (Rs.) • Inspectionby the & KEPZ.making Up recommendations to the 1990 solid onwaste technical was deposited aspects infor the the undeveloped industrial parks which have land located within the Phase I of KEPZ and this method created so many 2019 4099.90 2,750.00 11,274,725.00 problems due to the serious fires occurred with environmental hazards. th • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation According to a management decision taken at the Board at its 359 Considering the above problem a Burning Chamber was set up in 1990 Meeting held on 16.06.2017, only 50% of the waste disposal cost is through Land Allocation Committee followed by the approvals of Screening Committee and which was designed and constructed by the NERD Center and this method recovered from the respective enterprises in BEPZ on pro-rata basis. Board ofalso Directors had to be of givenBOI. up due to the several protest of General public living near the KEPZ Further, it is pertinent to note that KEPZ has been able to develop the land used for dumping solid waste, for commercial use and has already Page 18 of 24 Page 19 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 120 - - 27 - 8. Technical Services Department BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by All the excess employees in the Management Assistant Category & From the year 1995 to 2008 we adopted the Sanitary Land Filling System BOI. Primary Level Unskilled Category are Casual/ Contract basis employees to dispose the solid waste generated by the KEPZ and BOI had to bare who were absorbed into the permanent cadre on 01.09.2019 as per the around Rs. 1.2 million per month (including the Construction cost of Key functionsPublic of the Administration department are;Circular establishment No. 29/2019 of newdated Investment 18.09.2019. Zones, Initially, providing technical Cells). In addition nearly 20 acres had been allocated for this operation. inputs for construction,they were recruited operation, on short maintenance term basis andto be determination attended to essential of infrastructure day to facilities in day operations mainly in Export Processing Zones & Industrial Parks. On the Directives of the Management and following bidding procedures zones, advertisingMost of vacant the said lands Casual/ on availability Contract Management for selection Assistants of investors were for deployed new investment projects M/s Holcim Lanka ltd was awarded the new Service Contract in the year and assistingto CompetentPermit Offices, Authority Investor in Servicestransferring Units assets and other divested duty stationsto the State. where the 2008 for disposal of residual Solid waste after collecting waste by essential manpower requirements are needed. Further, several batches of collectors for re use and recycling, through the thermal destruction at their Services RenderedContract Securityby the Department Guards who were absorbed in to the permanent cadre as Cement Kilns at Putlam. It is also noted that the part of the total cost mentioned above had been deployed to Export Processing Zones & borne by the BOI has been recovered from the enterprises from the The TechnicalIndustrial Services Parks Department under theis mainly BOI asresponsible a key responsibility for; of protecting year 2008. Investors / BOI properties and the workforce as well as preventing possible • Overallillegal control actions of Action within thePlan Zones. for infrastructure development pertaining to EPZs, IPs, etc, In 2019 we have paid to the Insee Ecocycle Lanka (Pvt) Ltd the Subsidiary managed by BOI. of Holcim Lanka Ltd a Sum of Rs. 11.28 million for the Waste Disposal and we have collected Rs. 5.8Mn from the KEPZ enterprises But if we did • (ii) A committee was appointed to conduct a preliminary study in developing a not have this facility we have to spend around Rs. 1.2 Mn in each month Succession Plan and the committee report was presented to the which is 14 Mn per year. Therefore around 50% of the operational cost • PlanningIdentificationChairman and developmentof sitesand forDirector new of new investmentGeneral. investment zones/projects.Following zones. the decision to create have been saved while minimizing the fire hazardous situations and awareness on the importance of Succession Planning among Higher mitigating the environment pollution. It triggered the obtainment of EPL to • DeterminationManagerial of infrastructureOfficers an awareness to be provided programme to the was Zones. conducted by a well - the zone. It is also noted that the image of the Zone has been upgraded recognized Human Resource Specialist. Management is of the view that since we are applying the proper Waste management system which is • the succession plan should be prepared by a professional body or an marketed by our investors. The expenditure and the Charges recovered individual with experience and special expertise in the particular area. from the KEPZ enterprises in respect of the Solid Waste Disposal to Insee and handing over of operation of Zones to Zone Management Units. UndertakingAccordingly, initial thdevelopmente process of preparingwork of new a Succession investment Plan zones, is in progress. establishment of zone offices Ecocycle Lanka (Pvt) Ltd are given below; • Providing assistance and technical inputs for special investment projects with regard to land Statement of Charges Recovered from the KEPZ / Out Side matters and provision of infrastructure. enterprises in respect of the Solid Waste Disposal to Insee Ecocycle (d) Identified Losses Lanka (Pvt) Ltd Site • establishment(i) Solid Waste of an Disposal integrated cost solidof Katunayake waste management and Biyagama project/industrial Export Processing park and recycle of Year Weight in Rate Per Metric Tons Total Income (Rs.) Preparation of proposals, identification of sites, obtaining necessary approvals for the water andZones wastewater systems within the Zones. Metric Tons (Rs.)

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 120 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 121 - 8. Technical Services Department

BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for

infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. allocated 13.78 Acres of that land to new investors earning Rs. 120.5 Mn as land premium and, Rs. 14.66 Mn & Rs. 17.83 Mn as ground for years (f) Transaction in Contentious Nature Key functions of the2019 department & 2020 respectively. are; establishment Accordingly, of new the Investmentloss on solid Zones, waste providingdisposal technical has been compensated by the additional income earned by leasing out the inputs for construction,land previously operation, being maintenance used for that andpurpose. determination of infrastructure facilities in The rationale behind the Board supporting these expenses were based on the zones, advertising vacant lands on availability for selection of investors for new investment projects significant value of investment and economic impact related to both projects, with Silver Park Petroleum (Pvt) Ltd and Lanwa Sanstha Cement Corporation and assisting Competent Authority in transferring assets divested to the State. (ii) Former Executive Assistant was dismissed from employment effective (Pvt) Ltd valued at USD 3.85 Bn & USD 100 Mn respectively. These projects from 24.10.2013 by the letter dated 02.12.2016 following a Preliminary promise to positively impact the Sri Lankan economy in terms of export Services Rendered by the Department Investigation conducted by a retired SLAS Officer and the decision of the revenue, import substitution and employment. Silver Park Petroleum (Pvt) Ltd alone represents the highest value FDI generated via a single project at that The Technical ServicesBoard Department dated 25.11.2016. is mainly responsible for; time.

• Overall controlHe ofwas Action interdicted Plan forfrom infrastructure the service withdevelopment effect from pertaining 24.10.2013 to EPZs,for IPs, etc, leaving the country without a prior written approval of the management. A Highlighting significant investments of this nature helps to position Sri Lanka managed by BOI.preliminary investigation was conducted on this and, it was disclosed that as a prominent investment destination, which is why a VIP event with the he had left the country on or around 12.10.2013 without approval. participation of the Hon. Prime Minister as Chief Guest, along with significant • Consequently, a Charge Sheet was issued to him and, he had admitted that members of the local and expatriate investor community was organized as it he went to Korea without approval. Further, he had expressed his apology would have positive propaganda towards attracting more high profile • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. for the lapse made by him in that incident. investments globally.

establishmentemployment of an integrated was suspended solid waste (24 managementOctober 2013 toproject/industrial 02 December 2016). park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Accordingly, the quotations were invited from the reputed Event Management water and wastewaterLabour Tribunal systems has within issued the its Zones.order on 14 February 2019. It was asserted Agencies to organize and conduct the event and the contract was awarded to that the termination of the employment of the Executive Assistant was Ants Works (Pvt) Ltd at the total cost of Rs.4,020,837.00 (inclusive of 15% • Providing technicalunjust and support ordered for the infrastructure Respondent (BOI) development to pay the workApplicant carried, the outmonthly by the existing VAT) under the approval of the Procurement Committee II (065/2019). The Export Processingsalary Zones/Industrialof Rs.36,138/- for Parks the threeas and years when in requested. which his employment was Event was successfully completed by the selected Event Management Agency, suspended, as a compensation (the total amount being Rs. 1,300,968/-). Ants Works (Pvt) Ltd. • Providing technical support for operation and maintenance of water supply, wastewater and The Ground Breaking Ceremony was held under the patronage of the solid waste managementAccordingly, schemesthe Board of of existing Directors Export at its Processingmeeting held Zones/Industrial on 18.03.2019 has Parks. granted approval to deposit Rs. 1,300,968/- in the Labour Tribunal – Honourable Prime Minister and with the participation of distinguished invitees (Foreign Diplomats, Investors and representatives of Business Chambers) and • Inspection & Colombomaking recommendations as the full and final on settlement technical aspectsof the industrial for the industrial dispute between parks which have the said Executive Assistant and the BOI. therefore, it was a National Event. However, BOI spent only for a part of the entire event.

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation

through(e) LandIdle and Allocation Underutilized Committee Assets followed by the approvals of Screening Committee and

Board of Directors of BOI. Those items have not been used for more than 5 years period and action will be taken to auction those items with the approval of the management.

Page 2 1 of 24 Page 20 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 122 - - 27 - 8. Technical Services Department

BOARD OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. allocated 13.78 Acres of that land to new investors earning Rs. 120.5 Mn as land premium and, Rs. 14.66 Mn & Rs. 17.83 Mn as ground for years (f) Transaction in Contentious Nature Key functions of the2019 department & 2020 respectively. are; establishment Accordingly, of new the Investmentloss on solid Zones, waste providingdisposal technical has been compensated by the additional income earned by leasing out the inputs for construction,land previously operation, being maintenance used for that andpurpose. determination of infrastructure facilities in The rationale behind the Board supporting these expenses were based on the zones, advertising vacant lands on availability for selection of investors for new investment projects significant value of investment and economic impact related to both projects, with Silver Park Petroleum (Pvt) Ltd and Lanwa Sanstha Cement Corporation and assisting Competent Authority in transferring assets divested to the State. (ii) Former Executive Assistant was dismissed from employment effective (Pvt) Ltd valued at USD 3.85 Bn & USD 100 Mn respectively. These projects from 24.10.2013 by the letter dated 02.12.2016 following a Preliminary promise to positively impact the Sri Lankan economy in terms of export Services Rendered by the Department Investigation conducted by a retired SLAS Officer and the decision of the revenue, import substitution and employment. Silver Park Petroleum (Pvt) Ltd alone represents the highest value FDI generated via a single project at that The Technical ServicesBoard Department dated 25.11.2016. is mainly responsible for; time.

• Determination of infrastructure to be provided to the Zones. Thereafter, the Board at its meeting held on 25.11.2016 had granted Further, since the inception of the Mirijjawila EPZ, only a few enterprises have been operating and almost all the lands belong to the Zone were not utilized • approval to dismiss him immediately taking into account the recommendation of the Investigating Officer and also the previous adverse effectively for a long period. As a result of these two (02) new Landmark and handing over of operation of Zones to Zone Management Units. Projects, all the unutilized lands could be used for economic development of Undertaking casesinitial reco developmentrded against work his misconduct. of new investment Accordingly, zones, his establishment service had been of zone offices terminated on disciplinary grounds. the country. • Providing assistance and technical inputs for special investment projects with regard to land matters and provisionSubsequent of to infrastructure. the dismissal, he had filed an application to Labour Tribunal The expenses related to this event were approved by the Board of Directors at its 396th meeting held on 18.03.2019. Board approved a request to augment of Colombo requesting a compensation of Rs. 2.2 million against his th • service termination along with the back wages for the period of his event budget by Rs. 129,078.90 at its 404 meeting held on 02.08.2019. establishmentemployment of an integrated was suspended solid waste (24 managementOctober 2013 toproject/industrial 02 December 2016). park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the Accordingly, the quotations were invited from the reputed Event Management water and wastewaterLabour Tribunal systems has within issued the its Zones.order on 14 February 2019. It was asserted Agencies to organize and conduct the event and the contract was awarded to that the termination of the employment of the Executive Assistant was Ants Works (Pvt) Ltd at the total cost of Rs.4,020,837.00 (inclusive of 15% • Providing technicalunjust and support ordered for the infrastructure Respondent (BOI) development to pay the workApplicant carried, the outmonthly by the existing VAT) under the approval of the Procurement Committee II (065/2019). The Export Processingsalary Zones/Industrialof Rs.36,138/- for Parks the threeas and years when in requested. which his employment was Event was successfully completed by the selected Event Management Agency, suspended, as a compensation (the total amount being Rs. 1,300,968/-). Ants Works (Pvt) Ltd. • Providing technical support for operation and maintenance of water supply, wastewater and The Ground Breaking Ceremony was held under the patronage of the solid waste managementAccordingly, schemesthe Board of of existing Directors Export at its Processingmeeting held Zones/Industrial on 18.03.2019 has Parks. granted approval to deposit Rs. 1,300,968/- in the Labour Tribunal – Honourable Prime Minister and with the participation of distinguished invitees (Foreign Diplomats, Investors and representatives of Business Chambers) and • Inspection & Colombomaking recommendations as the full and final on settlement technical aspectsof the industrial for the industrial dispute between parks which have the said Executive Assistant and the BOI. therefore, it was a National Event. However, BOI spent only for a part of the entire event.

Board of Directors of BOI. Those items have not been used for more than 5 years period and action will be taken to auction those items with the approval of the management.

Page 2 1 of 24 Page 20 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 122 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 123 - 8. Technical ServicesBOARD Department OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

The Technical Services Department is responsible for the overall control of Action Plan for infrastructure(g) Delayed development Projects pertaining to Export Processing Zones and Industrial Parks managed by Zone Description of Projects Year of Reasons Commencement BOI. (i) Water supply for by roads 2014 This project is not completed. Hence Zone Description of Projects Year of Reasons this cannot be capitalized. Key functions of the department are; establishmentCommencement of new Investment Zones, providing technical Action will be taken to finalize expeditiously in year 2020. inputs forSEPZ construction, Design fee operation, of the weimaintenancer 2014 and determinationThis cannot ofbe infrastructurecapitalized until facilities the in across Kelani River Project is completed. Design consultancy work 2015 Initial expenditure incurred for zones, advertising vacant lands on availability for selectionAction of investors will befor newtaken investment to finalize projects for WTP consultancy services to design waste and assisting Competent Authority in transferring assets divestedexpeditiously to the in State.year 2020. water treatment plant is shown under CWIP. This cannot be capitalized until MwEPZ Supply and fixing of steel 2015 Supply and fixing of Steel brackets and the project is completed. Services Renderedbrackets by the& clamps Department clamps is an integral part of the RO Supply & installation of 2015 This project is not completed. Plant Project which is shown under the transformer for street Hence this cannot be capitalized. The Technical Services Department is mainly responsible for;CWIP. This cannot be capitalized until lighting Action will be taken to finalize the RO Plant Project is completed. expeditiously in year 2020. • Overall controlDismantle of Action of & Planreinstall for infrastructure2014 developmentValue shown pertaining in CWIP to EPZs,is the IPs, etc, Geotechnical Investigation 2015 This project is not completed. water purification plant expenditure incurred to transport the managed by BOI. – proposed STP Hence this cannot be capitalized. used RO Plant from Kandy Industrial Action will be taken to finalize Park to Mawathagama EPZ. This • expeditiously in year 2020. cannot be capitalized until the project is completed.

• PlanningIdentificationBEPZ andAugmentation developmentof sites for of new ofcommon newinvestment investment zones/projects.- zones. This contract has been terminated on waste water treatment 19.04.2013 due to breach of Conditions • Determination of infrastructure to be provided to the ofZones. Contract. This cannot be capitalized (ii) Replace Filter Media of Rapid Sand Filters (06 Nos) until the issues are resolved. • KEPZ Improvement of peripheral - This contract is terminated and a final NWS&DB has verbally informed that there are two separate tenders to fence decision will be taken during the year. supply and delivery of Anthracite and to rehabilitate the filters. Both these and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices tenders have been closed and now those tenders are at awarding stage. Construction of part of - This contract was awarded to M/s Maga • Providing assistance and technical inputs for special investment projects with regard to land main internal road - Neguma Road Construction Equipment matters andKadolkelewatta provision of infrastructure. Company (Pvt) Ltd. For a contract sum of Rs. 9,513,301.35 (Exc. VAT) on (h) Environment and Social Responsibility • 10.06.2014 and work was completed on 18.06.2014. Only an amount of Rs. (i) Export Processing Zones operating without EPL establishment of an integrated solid waste management7,530,791.64 project/industrial (excluding VAT) park hasand been recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. paid to the contractor as first interim payment. SEPZ & HEPZ - Common wastewater treatment plants • ProvidingHead technicalImprovements support to formain infrastructure - developmentProject is worknot completed, carried Thisout cannotby the be existing therein require augmentation/ Office access road - Henegama capitalized. improvements and currently being Export Processing Zones/Industrial Parks as and whenAction requested. will be taken to finalize attended. However, this will take about 02 expeditiously in year 2020. years period and it is the only criteria to be • ProvidingMjEPZ technicalSupply of watesupportr connection for operation 2012 and maintenanceInitial expenditure of water forsupply, the designing wastewater of and fulfilled for the EPL. solid waste management schemes of existing Export Processingwater supply Zones/Industrial project of MjEPZ Parks. is shown under CWIP. This cannot be KgEPZ - After attending to required rectifications, • Inspection & making recommendations on technical aspectscapitalized for theuntil industrial the parksproject which is have re-applied to CEA for the EPL. CEA completed. conducted the inspection and awaiting the Construction of road 2012 The final payment of the contract is not response of the CEA. yet released.

through Landservices Allocation for sewer Committee network followed by theconsultancy approvals servicesof Screening to design Committee sewer and network is shown under CWIP. This Board of Directors of BOI. cannot be capitalized until the project is completed.

Page 22 of 24 Page 23 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 124 - - 27 - 8. Technical ServicesBOARD Department OF INVESTMENT OF SRI LANKA BOARD OF INVESTMENT OF SRI LANKA

• AencountereddvertisingDesign vacant environmental landsconsultancy in Zones issues on and availability conflicts2013 in and respect Initialselect of suitable publicexpenditure concerns. investors incurred by an evaluationfor through Landservices Allocation for sewer Committee network followed by theconsultancy approvals servicesof Screening to design Committee sewer and network is shown under CWIP. This Board of Directors of BOI. cannot be capitalized until the project is completed.

Page 22 of 24 Page 23 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 124 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 125 - 8. Technical Services Department

BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by BOI. (ii) Hazardous waste generated by the production process of an enterprise at HEPZ Key functions of the department are; establishment of new Investment Zones, providing technical The approved disposal method for this type of hazardous waste available in inputs for Sriconstruction, Lanka is co -operation,processing. maintenancePresently, the andco-processing determination of such of hazardous infrastructure facilities in zones, advertisingwaste is vacantcarried lands out onlyon availability by INSEE for Ecocycle selection Lanka of investors (Pvt) Ltd. for INSEEnew investment projects and assistingEcocycle Competent Lanka Authority (Pvt) Ltd in accepts transferring such waste assets to divested use for co to- processingthe State. by ensuring the compatibility of the wastes by chemical analyzing and Services Renderedconsidering by the the quantityDepartment of such wastes. The particular enterprise is coordinating with the INSEE Ecocycle Lanka (Pvt) Ltd in this regard and a The Technicalsample Services of the Department said waste has is mainly been taken responsible by INSEE for; Ecocycle Lanka (Pvt) Ltd to analyse. Until such time this hazardous waste is currently being • Overallstored control within of theAction premises Plan ( underfor infrastructure the roof with welldevelopment cemented pertainingfloor) in an to EPZs, IPs, etc, environmental sound manner until removal by Insee Ecocycle (Pvt) Ltd. managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Page 24 of 24

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 126 - - 27 - 8. Technical Services Department s

BOARD OF INVESTMENT OF SRI LANKA The Technical Services Department is responsible for the overall control of Action Plan for

infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by 1 consultant consultant

BOI. a

(ii) Hazardous waste generated by the production process of an enterprise at m National revision in the the in revision

HEPZ WEPZ”at s a Key functions of the department are; establishment of new Investment Zones, providing technical I Annexure

The approved disposal method for this type of hazardous waste available in inputs for construction, operation, maintenance and determination of infrastructure facilities in

Sri Lanka is co-processing. Presently, the co-processing of such hazardous Reason / zones, advertisingwaste is vacantcarried lands out onlyon availability by INSEE for Ecocycle selection Lanka of investors (Pvt) Ltd. for INSEEnew investment projects s

and assistingEcocycle Competent Lanka Authority (Pvt) Ltd in accepts transferring such waste assets to divested use for co to- processingthe State. by ow, is in it progress. ensuring the compatibility of the wastes by chemical analyzing and osed for the ground water sump water wa ground the for osed considering the quantity of such wastes. The particular enterprise is document by bidding of submitting

Services Rendered by the Department not be awarded as the lowest bid was bid lowest the as awarded be not Clarification coordinating with the INSEE Ecocycle Lanka (Pvt) Ltd in this regard and a in

The Technicalsample Services of the Department said waste has is mainly been taken responsible by INSEE for; Ecocycle Lanka (Pvt) Ltd to analyse. Until such time this hazardous waste is currently being be pumps will new as submersible dropped

• Overallstored control within of theAction premises Plan ( underfor infrastructure the roof with welldevelopment cemented pertainingfloor) in an to EPZs, IPs, etc, was environmental sound manner until removal by Insee Ecocycle (Pvt) Ltd. managed by BOI. of service the obtain to need the Identified system. drainage the of purposes design the for now involved has consultant selected Accordingly, with that work. the as use to container a purchase to was proposed It permit office. requirements the with this hold to decided However, new proposed the with identified beginning the at zone the to developments/investments 2019. year of published. IFB the for bidders the by response No any other IFB incl. the publish to decided Thereafter, boundary Electric existing the of works rectification N too. zone the of fence Item Common of “Augmentation under Waste installed Plant Water Treatment project. BOI/WEPZ/ES/2017/01/03.008 could Contract after even Estimate Departmental the 139% against for call to was decided It negotiations. bids recalling for estimates departmental delay Dueto NWS&DB,However was delayed. procurement the work. this 2020 for February in was awarded contract guardroom of shifting and investigations Geotechnical prop location the at we Until line. budget this 2019 under in completed fro report geotechnical the received (NBRO) of design Organization Research Building completed. be not sump water could ground

•

8.50 35.00 Total • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. ------

• Determination of infrastructure to be provided to the Zones.

1.00 4.00 2.50 6.00 30.00 40.00 • 30.00 (Rs.Mn) and handing over of operation of Zones to Zone Management Units. ------Undertaking initial development work of new investment zones, establishment of zone offices Estimated Cost • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• Providing technical support for infrastructure development work carried out by the existing at boundary for fence ter

Export Processing Zones/Industrial Parks as and when requested. re ment ------• Providing technical support for operation and maintenance of water supply, wastewater and Procu solid waste management schemes of existing Export Processing Zones/Industrial Parks.

tribution network at link road 01and ring road road ring 01and road link at network tribution

• Inspection & making recommendations on technical aspects for the industrial parks which have IV phase pumps at booster of nd Installation Construction of Drains and Culverts around the the around Culverts and Drains of Construction land factory) cement (Proposed building office permit of Construction perime of Construction Center Development Viharamahadevi submersible of nos 05 of installation and Supply plant treatment wastewater pumps for of Construction centre, childcare of Construction unit, Relations industrial for Extension B Block & at building security of Construction Building department Fire to Improvement water of segment deteriorated of Replacement dis 01 sump Cum) (500 groundwater of Construction a area

01 02 03 04 05 06 07 • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation No ------through Land Allocation Committee followed by the approvals of Screening Committee and Activity Board of Directors of BOI.

Department ------Page 24 of 24 Mirijjawila EPZ Wathupitiwala EPZ Katunayake EPZ

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 126 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 127 - 8. Technical Services Department

The Technical Services Department is responsible for the overall controlwere of Action Plan for idder idder

infrastructure development pertaining to Export Processing Zones and Industrial Parks managed2 by agreed to agreed to ntation is BOI.

s Annexure I Annexure water and waste waste and water the proposal. the

Key functions, of the department are; establishment of new Investment Zones, providing technical

inputs for construction, operation, maintenance and determination(Divisional Secretary – of infrastructure facilities in / Reason / ment

zones,s advertising vacant lands on availability for selection of investors for new investment projects

and assisting Competent Authority in transferring assets divested to the State.

Services Rendered by the Department Clarification

response of the lowest bidder the work the bidder lowest the of response

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc,

managed 2020. in was completed area reclaimed of Development Untilfinishing this develop be not could design extension network water bycommenced. BOI.impleme However completed. Design Plaza of refurbishment the finalizing until postponed buildings. & work was BOQThe estimate this for in submit not could it and by BOIsubmit enterprise time. we somehad since idea, implementation Gavethe up arrangements and improvements.alternative interceptor the until was postponed Implementation NWS&DB by the is laid is project line sewer that and on. going still implement to not decided has Board is matter the still and process to period longer took It stage acquisition the under Biyagama) non Dueto implemented. be couldn’t had contract the is progress the delaying for The reason by the quoted rates high to due retendered be to b the with negotiations and bidder lowest previous rates bidder’s The newlowest wasunsuccessful. of Copies Estimate. Departmental the than higher also workwere and program statement financial audited the document. bid the with along submitted not

• 1.80 Total 155.00 ------• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. 91.05

• Determination of infrastructure to be provided to the Zones.

5.00 0.50 3.00 5.75 0.60 1.40 0.40 • 10.00 30.00 40.00 81.20 (Rs.Mn) ------Estimated Cost and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land tion

matters and provision of infrastructure. along

•

establishment of an integrated solid waste management project/industrial park and recycle of

Preparation of proposals, identification of sites, obtaining necessary approvals for the ategory

C water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing

re ment

Export Processing Zones/Industrial Parks as and when requested. tallation of a GSM based level ------Procu

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

TV camera system to cover the gate nos.02,03 nos.02,03 gate the cover TV to system camera • Inspection & making recommendations on technical aspects for the industrial parks which have Extension of water network to reclaiming area of of area reclaiming to network water of Extension dump yard reclaiming to network wastewater of Extension dump of yard area plaza to connection power supply the Rearrange units center Day of care Relocation & Ins Supply head over the monitor to system monitoring watertank & stationslift of BEPZ matura at accumulated sludge of Disposal A Block in ponds Export Biyagama of lifting face Proposed Zone. Processing of Kandeismaththe called land of ion Acquit Walgama,Malwana a of Commissioning and Installation Supply CC & ‘A’ Block 04 of Improvement Malwatta of fence perimeter the to fence link chain of EPP construction and and Pond area Maturation between boundary the gate steel a with BOI zone the Road of of trace the beam along concrete of Construction pond and retention the near fence link chain the of front in fence link chain a of construction

08 09 10 11 12 13 14 15 16 17 18 • No Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation ------Activity through Land Allocation Committee followed by the approvals of Screening Committee and

Board of Directors of BOI.

Department ------BiyagamaEPZ Malwatta EPP

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 128 - - 27 - 8. Technical Services Department

, le

to get

The Technical Services Department is responsible for the overall controlwere of Action Plan for idder idder 3

2 They have They have

infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by agreed to agreed to ntation is

BOI. s

Annexure I Annexure s Percentage payab Percentage

Annexure I Annexure water and waste waste and water

the proposal. the

Key functions, of the department are; establishment of new Investment Zones, providing technical / Reason /

8.08.2019. Thereafter Uni Thereafter 8.08.2019. s

inputs for construction, operation, maintenance and determination(Divisional Secretary – of infrastructure facilities in / Reason / ment

eplacing the filter media of

r s on 02.07.2020 and Tender Tender and on 02.07.2020

zones, advertising vacant lands on availability for selection of investors for new investment projects made completion the of after

and assisting Competent Authority in transferring assets divested to the State.

SEC letter dated 31.10.2014 SEC had 31.10.2014 dated SECletter Clarification

the bidding process was in progress as as progress was in process bidding the

Services Rendered by the Department Clarification response of the lowest bidder the work the bidder lowest the of response

- on 14.07.2020)

Both these tenders have been closed and now and closed been have tenders these Both

The Technical Services Department is mainly responsible for;

bid meeting held held meeting bid - • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, hose tenders are at the awarding stage. awarding the at are tenders hose Accordingly, we had to negotiate with him too, him with negotiate to we had Accordingly, documents. said the & obtain to reduced rates the procurement) & No.17 single 18 are (Activity This payment will be above contract. NWS&DB by the cleaned been had The tank and Uni Consultancy by the out was carried inspection 0 on Moratuwa of University of preparation and analysis the started Consultancy to was which submitted proposal, design Retrofitting BOI 30.08.2019. for progress in are works procurement present At EQT. of retrofitting and renovation (Pre ingopen on completed substantially been has The Contract BOI by the was occupied building and 24.02.2020 dated SEC letter Surveyor’s, Quantity chief the Asper Manager General Deputy and 09.10.2014 (Consultancy), and contract 4% pre of for fee consultancy a for agreed (supervision). phase contract post This contract has been awardedThis contract Water National to (NWS&DB).Board Drainage and Supply that informed NWS&DB 22.04.2019. dated has letter their per to tenders two separate are there that informed verbally the rehabilitate to and Anthracite of delivery and supply filters. t NWS&DBthat informed commence November 2020. in will of filters sand rapid

• Total ------1.80 Total 155.00 ------91.05 • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones. 50 1.00 3.00 0.

13.63 18.32 (Rs.Mn) 5.00 0.50 3.00 5.75 0.60 1.40 0.40 • 10.00 30.00 40.00 81.20 (Rs.Mn) ------Estimated Cost ------

Estimated Cost and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices -

• Providing assistance and technical inputs for special investment projects with regard to land tion

matters and provision of infrastructure. along

•

establishment of an integrated solid waste management project/industrial park and recycle of ategory

Preparation of proposals, identification of sites, obtaining necessary approvals for the C ategory

C water and wastewater systems within the Zones.

• Providing technical support for infrastructure development work carried out by the existing re ment re ment

Export Processing Zones/Industrial Parks as and when requested. Consultancy fee Consultancy

------

Procu

- tallation of a GSM based level ------Procu

• Providing technical support for operation and maintenance of water supply, wastewater and WTP WTP

solid waste management schemes of existing Export Processing Zones/Industrial Parks. - - k land at Malwatta Export Processing Park Park Processing Export Malwatta at k land

TV camera system to cover the gate nos.02,03 nos.02,03 gate the cover TV to system camera • Inspection & making recommendations on technical aspects for the industrial parks which have par (6 filters sand rapid media of filter of Replacing Nos.) (6 filters sand rapid media of filter of Replacing Nos.) papered cracks and deflected of Construction tank equalization of slab roof Building main entrance of Construction Building main entrance of Construction Consultancy Extension of water network to reclaiming area of of area reclaiming to network water of Extension dump yard reclaiming to network wastewater of Extension dump of yard area plaza to connection power supply the Rearrange units center Day of care Relocation & Ins Supply head over the monitor to system monitoring watertank & stationslift of BEPZ matura at accumulated sludge of Disposal A Block in ponds Export Biyagama of lifting face Proposed Zone. Processing of Kandeismaththe called land of ion Acquit Walgama,Malwana a of Commissioning and Installation Supply CC & ‘A’ Block 04 of Improvement Malwatta of fence perimeter the to fence link chain of EPP construction and and Pond area Maturation between boundary the gate steel a with BOI zone the Road of of trace the beam along concrete of Construction pond and retention the near fence link chain the of front in fence link chain a of construction

19 20 21 22 23 No 08 09 10 11 12 13 14 15 16 17 18 No ------• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Activity ------Activity through Land Allocation Committee followed by the approvals of Screening Committee and

Board of Directors of BOI.

Department ------Seethawaka Seethawaka EPZ Department ------BiyagamaEPZ Malwatta EPP

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 128 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 129 - 8. Technical Services Department y re we

The Technical Services Department is responsible for the overall control of Action Plan for 4

infrastructure development pertaining addition In to Export Processing Zones and Industrial Parks managed by

ones), it was it ones), Z (

BOI.

s consultancy fee fee consultancy Annexure I Annexure

bill checking and and checking bill per visit.

Key functions of the department- are; establishment of new Investment Zones, providing technical / Reason /

inputss for construction, operation, maintenance and determination of infrastructure facilities in RCC roof slab for daycare daycare for RCC slab roof zones, advertising vacant lands on availability for selection of investors for new investment projects Rs. 50,000/ Rs.

and assisting Competent Authority in transferring assets divested to the State.

As DGM (SEC) has not come to a a come to AsDGM not has (SEC)

Clarification vt) Ltd on 29.06.2020 Ltd vt)

Services Rendered by the Department an construct

supervision of above contract as agreed at at agreed as contract above of supervision

iation. Variation work awarded to Inko Inko work to awarded Variation iation. The Technical Services Department is mainly responsible for;

managed by BOI.

Total

• ------

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.9.00 0.50 (Rs.Mn) ------• Estimated Cost and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices

• Providing assistance and technical inputs for special investment projects with regard to land

matters and provision of infrastructure.

• ategory C establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. re ment

• Providing technical support for infrastructure development work carried out by the existing of proposed day care Centre care day proposed of

------Procu Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and

solid waste management schemes of existing Export ProcessingConstruction Zones/Industrial the to adjacent slope failed of Rehabilitation reservoir ground Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have 24 25 No ------Activity

• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation

through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI. Department ------

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 130 - - 27 - 8. Technical Services Department y

re as of we in the

The Technical Services Department is responsible for the overall control of Action Plan for 4 5 world world

infrastructure development pertaining addition In to Export Processing Zones and Industrial Parks managed by

the ones), it was it ones), Z (

BOI. s s consultancy fee fee consultancy invite the bids. Annexure I Annexure -

budget has to be be to has budget Annexure I Annexure

bill checking and and checking bill , per visit.

Key functions of the department- are; establishment of new Investment Zones, providing technical / Reason /

/ Reason / and supplied. Therefore Therefore supplied. and

Now we completed have s

inputs for construction, operation, maintenance and determination of infrastructure facilities in s . 19 situation in in 19 situation RCC roof slab for daycare daycare for RCC slab roof

zones, advertising vacant lands on availability for selection of investors for new investment projects Estimate, method statement/

- ovid Rs. 50,000/ Rs. been taken to re to taken been inviting the bids as we didn’t we as didn’t bids the inviting and assisting Competent Authority in transferring assets divested to the State.

As DGM (SEC) has not come to a a come to AsDGM not has (SEC) imported be

Clarification Ltd to supply 02 nos. of chemical chemical of 02 nos. supply to Ltd vt) Ltd on 29.06.2020 Ltd vt)

Clarification P

due to C to due

) Services Rendered by the Department an construct t supervision of above contract as agreed at at agreed as contract above of supervision Engineer’s v

ocurement process the whole process cannot cannot process whole the process ocurement P specification and detail report has been been has report detail and specification iation. Variation work awarded to Inko Inko work to awarded Variation iation. (

The Technical Services Department is mainly responsible for;

• Overall 4%. was As above 20% phase the of construction for controlagreed between BOI & SEC 4% be calculated shall and variation of inclusive price, contract final the from escalations. price dated DGM letter But, by his (Consultancy/SEC) of new a proposed had 15.08.2018 Action previous ignoring phase construction scheme for base fee charge time a as which was depicted schedule, staff supervision for Plan was cost construction total the 1.5% above of to the from charge to proposed certification. for we that, informed 30.11.2018 dated BOI, by letter infrastructure make on new to payment based time position a in not by requested DGM/SEC as scale charge fee (SEC letter for make to agreement informed and 19.08.2018 dated periodical initial stage). up released been not payment has relevant settlement, now.to development Main Entrance of Construction of The Contract was on 24.02.2020. Completed Building ED the by given instruction the Asper to decided Approval roof. steel Zn/Al of instead building center pertaining total the for General Director by the granted been has var net ( Engineering of quotation a surveys land and visits site several After + NBT 950,000.00 b + VATRs. submitted been has to of design and analysis stability for Consultancy Uni BOQ, of Tender Preparation method. EPZs,rectification IPs, etc, document/ drawing/ dated letter BOI to by their submitted and completed 27.09.2019. was received equipment lab purchasing for Request NWS&DB from these Since BOI to on 09.10.2019. newly purchased be to have items the By following Budget. Capital from allocated pr standard December of most of end 2019 as before completed be the items are to budget capital to was included budget allocated the NWS&DB the 2020 informing call to now ready is and bids The BOI M/s hasto awarded Safety contract the Systems period validity the and on 19.11.2019 suits protective date the from was 90 days contract the of CEO that company above informed the of 25.11.2019. was delay the However France. from imported be to have items the import to scheduled been has it that confirmed he freight. by air August week of first was- re decidedIt to the with substantially complying bids receive bidding the in disclosed Specification Technical has Action document. of end the at project the complete We to were unable obtain to taken decision the to 2019 due year the at 03 tanks of designing the for y services consultanc firm Zoneoutside from the work. construction 95% the of

managed by BOI.

Total

• ------50.95 Total ------

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.9.00 0.50 (Rs.Mn) 3.00 2.00 1.00 10.00 (Rs.Mn) ------• Estimated Cost ------and handing over of operation of Zones to Zone Management Units. Estimated Cost Undertaking initial development work of new investment zones, establishment of zone offices

• Providing assistance and technical inputs for special investment projects with regard to land

matters and provision of infrastructure.

• ategory C establishment of an integrated solid waste management project/industrial park and recycle of ategory

Preparation of proposals, identification of sites, obtaining necessary approvals for the C water and wastewater systems within the Zones.

re ment

• Providing technical support for infrastructure development work carried out by the existing re ment of proposed day care Centre care day proposed of

------Procu Export Processing Zones/Industrial Parks as and when requested. ------Procu • Providing technical support for operation and maintenance of water supply, wastewater and

solid waste management schemes of existing Export ProcessingConstruction Zones/Industrial the to adjacent slope failed of Rehabilitation reservoir ground Parks.

Purchase of lab equipment lab of Purchase Nos.) (2 suit protection chemical of Purchase to system arrestor lightning of Fixing administration building fence and drains wall, retaining of Construction B Block of points discharge water strom the to

• Inspection & making recommendations on technical aspects for the industrial parks which have

24 25 No

------Activity 26 27 28 29 No

------• Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Activity

through Land Allocation Committee followed by the approvals of Screening Committee and Board of Directors of BOI.

Department ------

Department ------Mirigama EPZ

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 130 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 131 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for 6 infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by

to NWS&DB NWS&DB to

BOI. s Annexure I Annexure ine no: 06.01.040, 06.01.040, no: ine L

Key functions of the department are; establishment of new Investment Zones, providing technical

/ Reason /

inputss for construction, operation, maintenance and determination of infrastructure facilities in invite the bids. - zones, advertising vacant lands on availability for selection of investors for new investment projects of Pumps for Water Treatment Water Treatment Pumpsof for

April 2018. April inviting the bids as we didn’t we as didn’t bids the inviting

and assisting Competent Authority in transferringth assets divested to the State.

ServicesClarification Rendered by the Department ing of existing pumps. Budget allocation for for allocation Budget pumps. existing of ing The Technical Services Department is mainly responsible for; and Installation

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, ction has been taken to re to taken been has ction stimate and bidding document awarded bidding and stimate managed wasWater the operate decided TreatmentIt to Plant repair after by Supply BOI. Budget to transferred was Plant Improvements Gamameda to between in road located B &block C Mirigama EPZ. of was re decidedIt to received bids complying substantially with the criteria the of value the document and bidding the in disclosed . were Estimated bids the cost than received higher A of preparation and investigation consultancy Design, e 27 dated letter by the sewer of designs of delays the to due However work wells lift of construction and network collecting 2020. budget capital the to forward carried

• 43.00 Total 385.30 ------

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

8.00 2.00 2.00 20.00

• (Rs.Mn) ------Estimated Cost and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure.

• establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the

ategory water and wastewater systems within the Zones. C

• Providing technical support for infrastructure development work carried out by the existing or fire Hydrant System to System to Hydrant fire or re ment Export Processing Zones/Industrial Parks as and when requested.

------•Procu Providing technical support for operation and maintenance of water supply, wastewater and ck Ack B Block and

solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have Supply & Installation of pumps for water water pumpsfor of & Installation Supply treatment plant f Install and Supply B Block & Construction Investigation consultancy Design of network collection sewer laying of supervision ABlock & B internal along network sewage collection Laying Blo of road Total

30 31 32 33

• AencounteredNo dvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation ------Activity through Land Allocation Committee followed by the approvals of Screening Committee and

Board of Directors of BOI.

Department ------

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 132 - - 27 - 8. Technical Services Department Report of the Audit Committee Report of the Audit Committee

The Technical Services Department is responsible for the overall control of Action Plan for 6 The Audit Committee was constituted in accordance with the provisions in the Public infrastructure development pertaining to Export Processing Zones and Industrial Parks managed by Enterprises Circular PED 55 dated 14.12.2010.

to NWS&DB NWS&DB to

BOI. s

Annexure I Annexure Audit Committee comprised of following members; ine no: 06.01.040, 06.01.040, no: ine L

Key functions of the department are; establishment of new Investment Zones, providing technical 1. Chairman - Mr. Duminda Hulangamuwa (Member of the Board of Directors of BOI)

/ Reason /

inputss for construction, operation, maintenance and determination of infrastructure facilities in invite the bids. 2. Member - Dr. Nihal Samarappuli (Member of the Board of Directors of BOI) - zones, advertising vacant lands on availability for selection of investors for new investment projects of Pumps for Water Treatment Water Treatment Pumpsof for

3. Member - Dr. Harsha Subasinghe (Member of the Board of Directors of BOI) April 2018. April inviting the bids as we didn’t we as didn’t bids the inviting

- and assisting Competent Authority in transferringth assets divested to the State. 4. Member - Mr. Anil S. Amarasuriya (Member of the Board of Directors of BOI)

ServicesClarification Rendered by the Department 5. Observer - Mr. K. A. Vimalenthirarajah (Representative of Treasury) ing of existing pumps. Budget allocation for for allocation Budget pumps. existing of ing 6. Consultant - Mr. Lasantha Wickremasinghe (Voluntary Consultant to the Audit Committee) The Technical Services Department is mainly responsible for; and Installation

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, ction has been taken to re to taken been has ction

stimate and bidding document awarded bidding and stimate Director (Internal Audit) convened the Audit Committee meetings and acted as the Secretary to managed wasWater the operate decided TreatmentIt to Plant repair after by Supply BOI. Budget to transferred was Plant Improvements Gamameda to between in road located B &block C Mirigama EPZ. of was re decidedIt to received bids complying substantially with the criteria the of value the document and bidding the in disclosed . were Estimated bids the cost than received higher A of preparation and investigation consultancy Design, e 27 dated letter by the sewer of designs of delays the to due However work wells lift of construction and network collecting 2020. budget capital the to forward carried the Committee.

• Superintendent of Audit represented the Auditor General at the Audit Committee meetings as 43.00 Total 385.30 ------an observer.

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

Only two (02) Audit Committee meetings were held for year 2019 due to the Board of

• Determination of infrastructure to be provided to the Zones. Directors being dissolved twice due to the political turmoil in the latter part of 2018 and the

8.00 2.00 2.00 presidential election in year 2019 resulting in the Audit Committee too had been changed twice 20.00

• (Rs.Mn) within a shorter period. As a result of which quarterly Audit Committee meetings could not be ------Estimated Cost and handing over of operation of Zones to Zone Management Units. held as planned. However, the Audit Committee managed to review the Internal Activities of Undertaking initial development work of new investment zones, establishment of zone offices year 2019 as mentioned below. • Providing assistance and technical inputs for special investment projects with regard to land matters and provision of infrastructure. Committee thoroughly reviewed the observations reported in the Internal Audit Reports and the recommendations to rectify/prevent reported deficiencies and given further directives based

• on the adequacy of suggested measures. Audit Committee necessitated following up on implementation of the recommendations and strengthening the internal controls. establishment of an integrated solid waste management project/industrial park and recycle of Preparation of proposals, identification of sites, obtaining necessary approvals for the

ategory water and wastewater systems within the Zones.

C Audit Committee expressed its concern over the accounting deficiencies which resulted in

receiving a qualified audit opinion for year 2018. As directed by the Audit Committee, each • Providing technical support for infrastructure development work carried out by the existing and every such item was gone through by the Internal Audit in the presence of Superintendent or fire Hydrant System to System to Hydrant fire or re ment Export Processing Zones/Industrial Parks as and when requested. of Audit, Director General of BOI and the Finance Department to resolve the same. Having

considered the outcome of the said review, the Committee required to submit interim financial

------•Procu Providing technical support for operation and maintenance of water supply, wastewater and statements to the Government Audit enabling them commence financial audit prior to year-end ck Ack B Block and with a view of receiving audit queries (if any) from the Auditor General in advance allowing solid waste management schemes of existing Export Processing Zones/Industrial Parks. BOI to resolve the issues in the final accounts to eliminate qualified audit opinions in future.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Supply & Installation of pumps for water water pumpsfor of & Installation Supply treatment plant f Install and Supply B Block & Construction Investigation consultancy Design of network collection sewer laying of supervision ABlock & B internal along network sewage collection Laying Blo of road Total In addition to above, Audit Committee further reviewed few selected critical special

investigations done by the Internal Audit Department during the year and recognized the

necessity of developing policies to regulate identified operations/areas and implementing 30 31 32 33 • AencounteredNo dvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation stringent monitoring mechanisms to follow up compliance. ------Activity through Land Allocation Committee followed by the approvals of Screening Committee and

Board of Directors of BOI. Accordingly, the Audit Committee ensured imposing and implementation of proper internal controls to mitigate risk exposure and to safeguard public assets/interests.

Department ------

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 132 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 133 - 8. Technical Services Department

The Technical Services Department is responsible for the overall control of Action Plan for infrastructureAlso, the Audit development Committee pertainingexamined theto Export quarterly Processing financial Zones statements and Industrial and the Parksfinancial managed by performance of BOI and assessed the resource utilization of BOI. BOI. The Audit Committee was of the view that terms of references for the Committee were Keycompl functionsied within of all the material department aspects are; except establishment for the number of ofnew meetings Investment. Zones, providing technical inputs for construction, operation, maintenance and determination of infrastructure facilities in zones, advertising vacant lands on availability for selection of investors for new investment projects and assisting Competent Authority in transferring assets divested to the State.

Services Rendered by the Department

The Technical Services Department is mainly responsible for;

• Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, managed by BOI.

•

• PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones.

• Determination of infrastructure to be provided to the Zones.

• Providing technical support for infrastructure development work carried out by the existing Export Processing Zones/Industrial Parks as and when requested.

• Providing technical support for operation and maintenance of water supply, wastewater and solid waste management schemes of existing Export Processing Zones/Industrial Parks.

• Inspection & making recommendations on technical aspects for the industrial parks which have

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 134 - - 27 - 8. Technical Services Department Senior Officers of the BOI as at 31.12.2019 The Technical Services Department is responsible for the overall control of Action Plan for infrastructureAlso, the Audit development Committee pertainingexamined theto Export quarterly Processing financial Zones statements and Industrial and the Parksfinancial managed by Eng. Mangala P. B. Yapa - Chairman performance of BOI and assessed the resource utilization of BOI. Ms. C P Malalgoda - Director General BOI. The Audit Committee was of the view that terms of references for the Committee were Keycompl functionsied within of all the material department aspects are; except establishment for the number of ofnew meetings Investment. Zones, providing technical Executive Directors Department Location inputs for construction, operation, maintenance and determination of infrastructure facilities in Ms. R M Weerakone Project Monitoring World Trade Centre zones, advertising vacant lands on availability for selection of investors for new investment projects Mr. S P K Wijayatilake Investment Promotion World Trade Centre and assisting Competent Authority in transferring assets divested to the State. Mr. K P V D Fernando World Trade Centre Mr. A R Karunaratne Recoveries Unit World Trade Centre Office of ED Services Rendered by the Department Mr. R M U Senerath Project Implementation World Trade Centre Mr. M Ramanayake Investor Services World Trade Centre The Technical Services Department is mainly responsible for; Mr. H M Jayasundara Engineering Approvals & Special Projects World Trade Centre • Overall control of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Mr. M K D Lawrance Zone Management Katunayaka EPZ managed by BOI. Mr. W U K M A Wijayakulathilaka Investment Appraisal World Trade Centre Ms. S A D D Suraweera Finance World Trade Centre • Ms. P N Samaraweera Research & Policy Advocacy World Trade Centre • PlanningIdentification and developmentof sites for new of newinvestment investment zones/projects. zones. Mr. J P C Jayalath Information Technology World Trade Centre Mr. H M Keerthiratne Human Recourses & Administration World Trade Centre • Determination of infrastructure to be provided to the Zones. Directors Department Location • Mr. D S Samarasinghe Media & Publicity World Trade Centre and handing over of operation of Zones to Zone Management Units. Undertaking initial development work of new investment zones, establishment of zone offices Ms. N De Silva Investment Promotion World Trade Centre • Providing assistance and technical inputs for special investment projects with regard to land Ms. H S Urugodawatte Legal Katunayake EPZ matters and provision of infrastructure. Mr. G Dahanayake Zone Management Koggala EPZ Kandy Industrial Mr. M J K Mohottala Regional Development • Park establishment of an integrated solid waste management project/industrial park and recycle of Ms. A S Beling Environment Management World Trade Centre Preparation of proposals, identification of sites, obtaining necessary approvals for the water and wastewater systems within the Zones. Mr. T M D Thilakaratna Zone Management Wathupitiwala EPZ Mr. W A G Jayathilaka Investment Appraisal World Trade Centre • Providing technical support for infrastructure development work carried out by the existing Mr. A S K T R Sibera Investment Appraisal World Trade Centre Export Processing Zones/Industrial Parks as and when requested. Ms. P S P Pilapitiya Engineering Approvals & Special Projects World Trade Centre • Providing technical support for operation and maintenance of water supply, wastewater and Mr. A K Rajakaruna Investor Services World Trade Centre solid waste management schemes of existing Export Processing Zones/Industrial Parks. Ms. D A S Amarakoon Internal Audit World Trade Centre Mr. H S K Fernando Zone Management Katunayake EPZ • Inspection & making recommendations on technical aspects for the industrial parks which have Mr. K A D N Kumarapeli Zone Management Seethawaka EPZ North Western Mr. W N W Dabare • Aencountereddvertising vacant environmental lands in Zones issues on and availability conflicts in and respect select of suitable public concerns. investors by an evaluation Mr. S J Gamage RegionalAdministration Office World Trade Centre through Land Allocation Committee followed by the approvals of Screening Committee and Regional Office Ms. N N Andrahennadi Industrial Relations World Trade Centre Board of Directors of BOI. Ms. R A S K Botheju Zone Management Biyagama EPZ Mr. C P Panadura Finance World Trade Centre Mr. S Paranawidanage Technical Services World Trade Centre Mr. Brig. D A Amunugama Security & Fire World Trade Centre

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 134 - - 27 - Annual Report 2019 - Board of Investment of Sri Lanka - 135 - 8. TechnicalDirectory Services Department of BOI Offices The Technical Services Department is responsible for the overall control of Action Plan for Head Office (WTC Office) Koggala Export Processing Zone Level 05,infrastructure 06, 08, 09, 19, development 24, 25, 26 & 27 pertaining to Export ProcessingKoggala, Habaraduwa. Zones and Industrial Parks managed by West Tower, WTC, Echelon Square, Colombo 01. Tel : 091 2283425 Tel : BOI.011 2434403-5, 2435027, 2447531, Fax : 091 2283370 2385972-5, 2346131-3 E-mail : [email protected] Fax : Key 011 2447995,2329795,functions of the 2430512,department 2422407 are; establishment of new Investment Zones, providing technical E-mail : [email protected] Kandy Industrial Park inputs for construction, operation, maintenanceKengalle, and determination Kandy. of infrastructure facilities in Katunayakezones, Export advertising Processing vacant Zone lands on availability forTel selection : 081 2420019, of investors 2420025, for 2423992,new investment 2423994 projects Katunayake. Fax : 081 2420091, 2423995 Tel : and 011 2252364-5,assisting Competent 2252140, 2252038, Authority 4833737, in transferring E-mail assets : [email protected] divested to the State. 4833741, 4833774, 4833779, 4833817, 4833819 Fax : Services 011 2253207 Rendered by the Department North Western Regional Office E-mail : [email protected] MAS Fabric Park, Kurunegala Road, Thulhiriya. Tel : 037 2277037, 2277038 The Technical Services Department is mainly responsible for; Biyagama Export Processing Zone Fax : 037 2277036 Walgama, Malwana. E-mail : [email protected] Tel : 011• 2465206Overall – control09 of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Fax : 011 2465227managed by BOI. Polgahawela Export Processing Zone E-mail : [email protected] Kegalle Road, Polgahawela. Tel : 037 2244657, 2241526 • Horana Export Processing Zone Fax : 037 2244657 Boralugoda, Poruwadanda. E-mail : [email protected] Tel : 034• 2269296,PlanningIdentification 2269752, and developmentof 2258077, sites for 2258029 new of newinvestment investment zones/projects. zones. Fax : 034 2255687 Mawathagama Export Processing Zone E-mail : [email protected]• Determination of infrastructure to be providedKandy to theRoad, Zones. Mawathagama. Tel : 037 2298147 Mirigama• Export Processing Zone Fax : 037 2296041 Mahayayawaththa, Loluwagoda, Mirigama. E-mail : [email protected] and handing over of operation of Zones to Zone Management Units. Tel : 033 2274657,Undertaking 2276626, initial 2276393 development work of new investment zones, establishment of zone offices Fax : 033 2274656, 2276393 Central Verification Terminal E-mail : [email protected]• Providing assistance and technical inputs forCeylon special Shipping investment Lines Yard projects with regard to land matters and provision of infrastructure. No 70, Avissawella Road, Orugodawatte. Wathupitiwela Export Processing Zone Tel : 011 2547485, 4411591, 4978969 Wathupitiwela. Fax : 011 2547485, 2053421 Tel : 033• 2281604 , 2281381 E-mail: [email protected] Fax : 033 2282364establishment of an integrated solid waste management project/industrial park and recycle of E-mail : [email protected] of proposals, identification ofAir sites,Cargo Verification obtaining Unit necessary approvals for the water and wastewater systems within the Zones.Bandaranayake International Airport Malwatta Export Processing Park Katunayake. Nittambuwa.• Providing technical support for infrastructureTel development: 011 2252155, 4833834,work carried 2265183 out by the existing Tel : 033 2288826, 2296166, 2296620 Fax : 011 2251830 Fax : 033 2288826Export Processing Zones/Industrial Parks as and when requested. E-mail : [email protected] BOI Special Economic Zone • Providing technical support for operation andPrima maintenance Factory Road, of China water Bay, supply, Trincomalee. wastewater and Seethawakasolid Export waste Processing management Zone schemes of existingTel Export : 026 Processing2233003 Zones/Industrial Parks. Awissawella. Fax : 026 2233002 Tel : 036• 2231082Inspection & making recommendations on technical aspects for the industrial parks which have Fax : 036 2231083 Jaffna Regional Office E-mail : [email protected] NHDA Building, Chundukuli, Jaffna. Tel : 021 2221336, 3207371 Mirijjawila• ExportAencountereddvertising Processing vacant environmental Zone lands in Zones issues on and availability conflictsFax :in 021and respect 2221336 select of suitable public concerns. investors by an evaluation 100 Feet Road, Mirijjawila, Hambanthota. through Land Allocation Committee followedBingiriya by the Zone approvals Office of Screening Committee and Tel : 047 2258800 German Wattha, Batuwatta, Dummalasooriya. Fax : 047 2258800Board of Directors of BOI. Tel : 032 2241376 E-mail: [email protected] Fax : 032 2247376

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 136 - - 27 - 8. TechnicalDirectory Services Department of BOI Offices The Technical Services Department is responsible for the overall control of Action Plan for Head Office (WTC Office) Koggala Export Processing Zone Level 05,infrastructure 06, 08, 09, 19, development 24, 25, 26 & 27 pertaining to Export ProcessingKoggala, Habaraduwa. Zones and Industrial Parks managed by West Tower, WTC, Echelon Square, Colombo 01. Tel : 091 2283425 Tel : BOI.011 2434403-5, 2435027, 2447531, Fax : 091 2283370 2385972-5, 2346131-3 E-mail : [email protected] Fax : Key 011 2447995,2329795,functions of the 2430512,department 2422407 are; establishment of new Investment Zones, providing technical E-mail : [email protected] Kandy Industrial Park inputs for construction, operation, maintenanceKengalle, and determination Kandy. of infrastructure facilities in Katunayakezones, Export advertising Processing vacant Zone lands on availability forTel selection : 081 2420019, of investors 2420025, for 2423992,new investment 2423994 projects Katunayake. Fax : 081 2420091, 2423995 Tel : and 011 2252364-5,assisting Competent 2252140, 2252038, Authority 4833737, in transferring E-mail assets : [email protected] divested to the State. 4833741, 4833774, 4833779, 4833817, 4833819 Fax : Services 011 2253207 Rendered by the Department North Western Regional Office E-mail : [email protected] MAS Fabric Park, Kurunegala Road, Thulhiriya. Tel : 037 2277037, 2277038 The Technical Services Department is mainly responsible for; Biyagama Export Processing Zone Fax : 037 2277036 Walgama, Malwana. E-mail : [email protected] Tel : 011• 2465206Overall – control09 of Action Plan for infrastructure development pertaining to EPZs, IPs, etc, Fax : 011 2465227managed by BOI. Polgahawela Export Processing Zone E-mail : [email protected] Kegalle Road, Polgahawela. Tel : 037 2244657, 2241526 • Horana Export Processing Zone Fax : 037 2244657 Boralugoda, Poruwadanda. E-mail : [email protected] Tel : 034• 2269296,PlanningIdentification 2269752, and developmentof 2258077, sites for 2258029 new of newinvestment investment zones/projects. zones. Fax : 034 2255687 Mawathagama Export Processing Zone E-mail : [email protected]• Determination of infrastructure to be providedKandy to theRoad, Zones. Mawathagama. Tel : 037 2298147 Mirigama• Export Processing Zone Fax : 037 2296041 Mahayayawaththa, Loluwagoda, Mirigama. E-mail : [email protected] and handing over of operation of Zones to Zone Management Units. Tel : 033 2274657,Undertaking 2276626, initial 2276393 development work of new investment zones, establishment of zone offices Fax : 033 2274656, 2276393 Central Verification Terminal E-mail : [email protected]• Providing assistance and technical inputs forCeylon special Shipping investment Lines Yard projects with regard to land matters and provision of infrastructure. No 70, Avissawella Road, Orugodawatte. Wathupitiwela Export Processing Zone Tel : 011 2547485, 4411591, 4978969 Wathupitiwela. Fax : 011 2547485, 2053421 Tel : 033• 2281604 , 2281381 E-mail: [email protected] Fax : 033 2282364establishment of an integrated solid waste management project/industrial park and recycle of E-mail : [email protected] of proposals, identification ofAir sites,Cargo Verification obtaining Unit necessary approvals for the water and wastewater systems within the Zones.Bandaranayake International Airport Malwatta Export Processing Park Katunayake. Nittambuwa.• Providing technical support for infrastructureTel development: 011 2252155, 4833834,work carried 2265183 out by the existing Tel : 033 2288826, 2296166, 2296620 Fax : 011 2251830 Fax : 033 2288826Export Processing Zones/Industrial Parks as and when requested. E-mail : [email protected] BOI Special Economic Zone • Providing technical support for operation andPrima maintenance Factory Road, of China water Bay, supply, Trincomalee. wastewater and Seethawakasolid Export waste Processing management Zone schemes of existingTel Export : 026 Processing2233003 Zones/Industrial Parks. Awissawella. Fax : 026 2233002 Tel : 036• 2231082Inspection & making recommendations on technical aspects for the industrial parks which have Fax : 036 2231083 Jaffna Regional Office E-mail : [email protected] NHDA Building, Chundukuli, Jaffna. Tel : 021 2221336, 3207371 Mirijjawila• ExportAencountereddvertising Processing vacant environmental Zone lands in Zones issues on and availability conflictsFax :in 021and respect 2221336 select of suitable public concerns. investors by an evaluation 100 Feet Road, Mirijjawila, Hambanthota. through Land Allocation Committee followedBingiriya by the Zone approvals Office of Screening Committee and Tel : 047 2258800 German Wattha, Batuwatta, Dummalasooriya. Fax : 047 2258800Board of Directors of BOI. Tel : 032 2241376 E-mail: [email protected] Fax : 032 2247376

Annual AnnualReport Report2019 - Board2019 -of Board Investment of Investment of Sri Lanka of Sri Lanka - 136 - - 27 -