Based on exhaustive research and investigation, experts have pinpointed certain priority areas in the Sri Lankan economy that could serve as catalysts for investment and export enhancement. The major challenge that arises, however, is finding suitable locations for the creation of factories in these sectors. This is a pressing issue, particularly considering that nearly 90% of the Export Processing Zones (EPZs) under the Board of Investment (BOI) are already operational. Land scarcity is indeed a major constraint for investors, thereby warranting significant attention and resolution before these priority sectors can be effectively promoted.
Identifying Potential Industrial Sites
The major hurdle identified led to a dedicated Land Team being established to gather information on available lands for investment projects. The team found that the state owns the majority of the land in Sri Lanka, spread across numerous Ministries and Departments. An extensive dialogue was initiated with several of these entities, ultimately leading to the compilation of a database containing information on over 600 available lands.
Data Collection and Database Compilation
From the initial list of 600 sites, the focus was narrowed down to those boasting an area of more than 50 hectares. Satellite imagery was leveraged to gauge the viability of each location, followed by over 70 field visits to gather concrete data for the final assessment. Alongside the gathered data, sector-specific expertise was taken into account for the final land suitability analysis, guided by a meticulously developed sector-location methodology.
Land Suitability Evaluation Process
The team developed a proprietary Sector-Location Methodology to analyze the compatibility of various lands for investment in key sectors. This involved understanding both hard and soft asset requirements for each sector, facilitated by the asset competitiveness analysis of the Targeting Team. Certain land features were deemed essential across all sectors, such as topography and development cost.
Consequently, each land characteristic was assigned a weightage falling under four categories:
- hard asset availability;
- soft asset availability;
- general conditions;
- accessibility.
Sector Requirement Analysis
The next phase involved generating a scoring system for each identified land characteristic. These scores, ranging from 1 to 5, were determined by taking into account field-level observations, available district-level data (for labor characteristics), and the expertise of the Team members. The final matrix was filled for each identified land, including existing BOI Zones.
Land Characteristic Evaluation
Once the scores for land characteristics were established, these were multiplied with the sector requirement data to create a final score for each land for each sector. The scoring system allowed for a precise match between the land characteristics and the sector requirements, with lands scoring below 3 deemed unsuitable for the sector. An average score was calculated for each land for the Targeting Team’s top 12 sectors, leading to the identification of 29 high-priority sites.
Conceptualizing the Scoring System
The scoring system was designed to match each land to a potential sector based on required land characteristics. A score of 5 signified an ideal match, while a score below 3 deemed the land unsuitable. The average score of each land was then evaluated, leading to the identification of 29 potential sites.
The Final Outcome
Upon final evaluation, the highest-ranking locations were proposed for development into EPZs. A separate comprehensive report was also submitted, which focused on lands provided by the Prime Minister’s Office and the suitability of these lands for investment projects. As a result of this diligent groundwork, the 2018 Budget allocated resources for the development of these zones, with four sites already under construction.
The Role of Accessibility in Site Selection
In addition to land availability and suitability, accessibility was also a critical factor assessed during the site selection process. Factors such as proximity to key transport hubs like the Colombo Port were taken into consideration. However, the team could not establish sector-specific accessibility requirements, leading to equal weightages for these variables across all sectors.
Impact on Country’s Economy
The establishment of new industrial zones promises to propel the Sri Lankan economy forward. Increased investment opportunities, job creation, and enhanced export capabilities are just a few benefits to look forward to. Furthermore, strategies like these underline Sri Lanka’s commitment to creating a conducive environment for business and jumpstarting economic growth.
Conclusion
Strategizing Boi Zones in Sri Lanka is a complex, multifaceted process that requires meticulous planning, data analysis, and collaboration among various bodies. This initiative is a prime example of Sri Lanka’s dedication to facilitating investment, stimulating economic growth, and maximizing land utility. The success of this project serves as an excellent blueprint for similar future ventures, reinforcing Sri Lanka’s position as an attractive destination for investors. This strategic groundwork further reflects the country’s ambition to keep evolving and growing in a sustainable manner.