Sri Lanka (General Facts)

8/3/2019 Sri Lanka (General Facts)

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Sri Lanka at a GlanceSri Lanka at a Glance

Capital:Capital: ColomboColombo

Area:Area: 65,606 sq. kms.65,606 sq. kms.

Population:Population: 21,128,77221,128,772

Languages:Languages: Sinhala, Tamil & English.Sinhala, Tamil & English.

Sinhalais official &nationallanguage spokenby 74% Sri Lankans. EnglishisSinhalais official &nationallanguage spokenby 74% Sri Lankans. Englishiswidelyused &understoodintouristareas.widelyused &understoodintouristareas.

Currency:Currency: Sri Lankan Rupee (KLR)Sri Lankan Rupee (KLR)

Climate:Climate: Warm &Sunny, yearWarm &Sunny, year--round, withanaverageof27round, withanaverageof27 CinColombo. CinColombo.

Religion:Religion: BuddhismBuddhism-- 69%69%

HinduismHinduism 16%16%

IslamIslam 8%8%

ChristianityChristianity 7%7%


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Literacy:Literacy: Age15 andovercanreadand write. (Age15 andovercanreadand write. (EducationChartEducationChart))

--Total population: 90.7%Total population: 90.7%

--Male: 92.3%Male: 92.3%

--Female:89.1%Female:89.1%

International Airport:International Airport: Bandaranaike InternationalAirport, KatunayakeBandaranaike InternationalAirport, Katunayake(34kmtonorthofColombo)(34kmtonorthofColombo)

Transport:Transport: IslandIsland--wide, inexpensiverailway & publicand privatebuswide, inexpensiverailway & publicand privatebusservice. Luxuryvehicles, radioservice. Luxuryvehicles, radio--controlledcabs, &autorickshaws alsocontrolledcabs, &autorickshaws alsoavailable.available.

Medical Services:Medical Services: StateState--ownedhospitals inall parts ofcountry provideownedhospitals inall parts ofcountry providefreemedical & surgicalattention.freemedical & surgicalattention.

Sri Lankahas theSri Lankahas thehighest percapita incomehighest percapita income inSouthAsia withaninSouthAsia withanincome perheadofincome perheadof$1,350.$1,350.

Sri Lanka at a Glance (Contd.)Sri Lanka at a Glance (Contd.)


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Political OverviewPolitical Overview

DemocraticDemocratic CountryCountry

StructureofGovernmentStructureofGovernment:MixtureofPresidential & Parliamentary:MixtureofPresidential & ParliamentarySystem.System.

Headofstate:Headofstate: PresidentPresident

PresidentsDeputy:PresidentsDeputy: PrimeMinisterPrimeMinister

RulingParty:RulingParty: CoalitionofLeft wing & Right wingCoalitionofLeft wing & Right wing

President:President: Mr. Mahinda RajapaksaMr. Mahinda Rajapaksa


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Current Economic OverviewCurrent Economic Overview GDPGDP at current market prices:at current market prices: Rs. 4,411BillionRs. 4,411Billion

RealReal GDPGDP GrowthofGrowthof6 %6 % in2008.in2008.

Banks:Banks: TheBanks haveverylow PenetrationTheBanks haveverylow Penetration

Totalno. ofCommercialBanksTotalno. ofCommercialBanks 2222

BankingdensityBankingdensity 10.2 per1lakh people10.2 per1lakh people

Inflation:Inflation: LowestLowest 2.9% inApril 092.9% inApril 09

HighestHighest 28.2% in June0828.2% in June08

ExchangeRate:ExchangeRate: 1 Dollar = 110 KLR (Avg)1 Dollar = 110 KLR (Avg)

ThehighestcontributiontotheThehighestcontributiontothe GDPGDP is thatoftheis thatoftheServices industryServices industry ininSri Lanka.Sri Lanka.

Themajorindustries are:Themajorindustries are:

TransportationTransportation

ManufacturingManufacturing

AgricultureAgriculture


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Legal OverviewLegal Overview

BoardofInvestment (BOI)BoardofInvestment (BOI) is theApexbodyforall Investments.is theApexbodyforall Investments.

Theagreement withtheBOI entitles the specificincentives grantedtoanTheagreement withtheBOI entitles the specificincentives grantedtoaneligiblecompanyanditremains validfortheentirelifeoftheenterprise.eligiblecompanyanditremains validfortheentirelifeoftheenterprise.

Bilateral investmentBilateral investment agreements supportedbyaconstitutionalagreements supportedbyaconstitutionalguarantee, provides strong protectionforforeigninvestmentforSri Lanka.guarantee, provides strong protectionforforeigninvestmentforSri Lanka.

Bilateral Investment ProtectionAgreements existbetweenSri LankaandBilateral Investment ProtectionAgreements existbetweenSri LankaandIndia, China, France, Germany, Malaysia, tonameafew.India, China, France, Germany, Malaysia, tonameafew.

CorporateLaws:CorporateLaws: Sri Lankais alsoafoundermemberoftheMultilateralSri Lankais alsoafoundermemberoftheMultilateralInvestment GuaranteeAgency (MIGA). This provides further safeguardsInvestment GuaranteeAgency (MIGA). This provides further safeguardsagainstnonagainstnon--commercialrisk.commercialrisk.


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DemographicsDemographics

Population:Population:

Total Population: 21,324,791Total Population: 21,324,791 Population Growth Rate: 0.904%Population Growth Rate: 0.904% Birth Rate:16.26 births/1,000 populationBirth Rate:16.26 births/1,000 population Death Rate: 6.07 deaths/1,000 populationDeath Rate: 6.07 deaths/1,000 population

AgeStructure:AgeStructure: 00--14 years:23.9%14 years:23.9% 1515--64 years: 68%64 years: 68%

65 years andover:8.1%65 years andover:8.1%

MedianAge:MedianAge: Total: 30.9 yearsTotal: 30.9 years

Urbanization:15% ofthetotal populationUrbanization:15% ofthetotal population

Life Expectancy:Life Expectancy:

Total population: 75.14 yearsTotal population: 75.14 years Male: 73.08yearsMale: 73.08years Female: 77.28yearsFemale: 77.28years

Sex Ratio:Sex Ratio: Under15 years:1.04 male(s)/femaleUnder15 years:1.04 male(s)/female 1515--64 years: 0.96 male(s)/female64 years: 0.96 male(s)/female 65 years andover: 0.87 male(s)/female65 years andover: 0.87 male(s)/female Total population: 0.97 male(s)/femaleTotal population: 0.97 male(s)/female


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Largest CitiesLargest Cities

Name Population

1 Colombo, Western

2 Galkissa, Western

3 Moratuwa, Western

4 Jaffna, North Eastern

5 Negombo, Western

6 Pita Kotte, Western

7 Sri Jayewardenepura Kotte, Western

8 Kandy, Central

9 Trincomalee, North Eastern

10 Kalmunai, North Eastern


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WorkforceWorkforce

TheSri Lankan work forceaccounts forTheSri Lankan work forceaccounts for35% of the total population35% of the total population..

Foreigners canbeemployedinSri Lankabutonly withtheapprovaloftheForeigners canbeemployedinSri Lankabutonly withtheapprovaloftheGovt. Authorities.Govt. Authorities.

Usually suchapprovals aregivenforcompanies formed withtheapprovalUsually suchapprovals aregivenforcompanies formed withtheapprovaloftheBoardof InvestmentofSri Lanka.oftheBoardof InvestmentofSri Lanka.


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IT / ITESIT / ITES

Sri Lankan IT industryhas witnessedaremarkablegrowthinthelasttenSri Lankan IT industryhas witnessedaremarkablegrowthinthelasttenyears.years.

TheSri Lankan IT/Software Industrycanbedividedinto 3 mainTheSri Lankan IT/Software Industrycanbedividedinto 3 main

areas/segments:areas/segments: 1. Application productmarket1. Application productmarket 2. Software services2. Software services 3. Off3. Off--shoredevelopment servicesshoredevelopment services

DuetotheexperiencegainedintheSoftwareServices area, thecountryDuetotheexperiencegainedintheSoftwareServices area, thecountryhas agoodtalented poolof systemintegrators andapplication supporthas agoodtalented poolof systemintegrators andapplication support

personnel.personnel.

Therearecurrently 75 Softwarecompanies inOperation.Therearecurrently 75 Softwarecompanies inOperation.


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InfrastructureInfrastructure

RoadsRoads::

Nationalroads carryoverNationalroads carryover70 percent70 percentofthetrafficinSri Lanka.ofthetrafficinSri Lanka.

65%65% oftotal population stays in Ruraloftotal population stays in Ruralareas andtheyuseroads fortravelingareas andtheyuseroads fortraveling

to schools, colleges, markets as theyto schools, colleges, markets as theyare quitefarare quitefar--off.off.

AlthoughSri Lankaenjoys ahigherAlthoughSri Lankaenjoys ahigherroaddensitythaninmanydevelopingroaddensitythaninmanydevelopingcountries, theconditions andcountries, theconditions andstandards oftheroads areinadequatestandards oftheroads areinadequatetomeetrapidlygrowingfreightandtomeetrapidlygrowingfreightandpassengertraffic.passengertraffic.

Morethan 50% ofthenationalroadsMorethan 50% ofthenationalroadshave poororvery poor surfacehave poororvery poor surfaceconditionandmanyare seriouslyconditionandmanyare seriouslycongested.congested.

As of 2007 In Sq. kms.In Sq. kms.

Paved Roads 81

Access to All-Season-

Roads

65

Total No. of Ports 3

Total No. of Airports 3

International 1


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RailwaysRailways::

Therailnetwork is not strong. The passenger &Freight TransportationisTherailnetwork is not strong. The passenger &Freight Transportationis8% and 5% respectively.8% and 5% respectively.

Therailways continuetoface seriousTherailways continuetoface serious competitionfrom roadcompetitionfrom roadtransportation.transportation.

Since1989, securitythreats haveledtothe suspensionof services ontheSince1989, securitythreats haveledtothe suspensionof services ontheonlytwo profitablelines:theNorthern Linebeyond Vavunia, andtheonlytwo profitablelines:theNorthern Linebeyond Vavunia, andtheTalaimannar Line.Talaimannar Line.

Infrastructure (Contd.)Infrastructure (Contd.)


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PortsPorts::

Sri LankaSri Lanka has severallarge ports suchas Colombo, Galle, Trincomalee,has severallarge ports suchas Colombo, Galle, Trincomalee,and Kankasanthurai, as wellas harbours.and Kankasanthurai, as wellas harbours.

TheThe PortofColombo, thecountrys premiercommercial port, is oneofthePortofColombo, thecountrys premiercommercial port, is oneofthebetter performing ports inAsia.better performing ports inAsia.

Ithandles bothconventionalcargoas wellas containers, andhas beenIthandles bothconventionalcargoas wellas containers, andhas beenacknowledgedas oneofthemosteconomical ports intheregion.acknowledgedas oneofthemosteconomical ports intheregion.

TheColombo Porthandled277,268twentyTheColombo Porthandled277,268twenty--footequivalentunits (teu) infootequivalentunits (teu) inMay2009.May2009.

Infrastructure (Contd.)Infrastructure (Contd.)


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Colombo PortColombo Port

Accordingtothe Lloyds RegistertheColombo Portranks asAccordingtothe Lloyds RegistertheColombo Portranks as No.1 portNo.1 portofSouthAsiaandthe26thintheWorld.ofSouthAsiaandthe26thintheWorld.

Features:Features:

Throughputhas grownatacompoundannualrateof20.3% overThroughputhas grownatacompoundannualrateof20.3% overthelast sevenyears.thelast sevenyears.

Transhipmentcargoaccounts for 72% ofthroughput.Transhipmentcargoaccounts for 72% ofthroughput. 23 major shippinglines and 7 feeder services operateoutof23 major shippinglines and 7 feeder services operateoutof

Colombo.Colombo. TheColombo Portis computerizedandlinkedtoallmajorfreightTheColombo Portis computerizedandlinkedtoallmajorfreight

stations.stations.

KeyActivitiesofColomboFreeport:KeyActivitiesofColomboFreeport:--MultiMulti--countryconsolidationcountryconsolidation--RegionaldistributionRegionaldistribution--TranshipmentTranshipment--Import/exportandvalueadditionImport/exportandvalueaddition


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The ColomboPort offers:The ColomboPort offers:

Anidealgeographicallocation withminimumdeviationfrom shippinglines.Anidealgeographicallocation withminimumdeviationfrom shippinglines.

Excellentfeedernetwork.Excellentfeedernetwork.

Fastturnaroundandroundtheclock service.Fastturnaroundandroundtheclock service.

EDI facilities withtwomoderncontainerterminals, with stateoftheartEDI facilities withtwomoderncontainerterminals, with stateofthearttechnologyandcontrol systems.technologyandcontrol systems.

Themostcompetitiverates intheregion.Themostcompetitiverates intheregion.

Multicountryconsolidationandentrepotcargo.Multicountryconsolidationandentrepotcargo.

Flexibilitytomeetcustomerneeds. Work is alsoin progress todevelopFlexibilitytomeetcustomerneeds. Work is alsoin progress todevelopandupgradethe portofGallelocatedinthe southandthe portofandupgradethe portofGallelocatedinthe southandthe portofTrincomaleeonthenortheastcoastofSri Lanka.TrincomaleeonthenortheastcoastofSri Lanka.

Colombo Port (Contd.)Colombo Port (Contd.)


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TelecomTelecom

TelephoneDensity:TelephoneDensity: 71.87 phones per100 people (includingcellular).71.87 phones per100 people (includingcellular).

Operations bymultiple publicand privatetelephone service providers,Operations bymultiple publicand privatetelephone service providers,includingthreebasic, fourcellularand six payphone services, makingincludingthreebasic, fourcellularand six payphone services, makingtheindustryoneofthemostcompetitiveinAsia.theindustryoneofthemostcompetitiveinAsia.

Globaltelecomgiants suchasGlobaltelecomgiants suchas NTTNTT, Ericsson, Telstra, HutchisonWampoa, Ericsson, Telstra, HutchisonWampoaandMalaysia Telecomareothermajoroperators intheSri LankanandMalaysia Telecomareothermajoroperators intheSri Lankantelecommunications industry.telecommunications industry.

Deregulationhas resultedinthecountry's largestever privatisationDeregulationhas resultedinthecountry's largestever privatisationinitiative, withinitiative, withNTTNTT of Japan purchasing 35% ofSri Lanka Telecomforof Japan purchasing 35% ofSri Lanka TelecomforUS$225 million.US$225 million.

Theavailabilityofsatellitebandwidththrough several privateoperatorsTheavailabilityofsatellitebandwidththrough several privateoperatorssuchas Electroks andCeycom GlobalCommunications.suchas Electroks andCeycom GlobalCommunications.


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TourismTourism

Sri Lanka Alandlikenoother knownas anSri Lanka Alandlikenoother knownas anattractivedestinationattractivedestination forfortravelandtourismindustryhas becomeamajorcontributortothetravelandtourismindustryhas becomeamajorcontributortothenationaleconomy.nationaleconomy.

Thetourismindustryhas emergedas the 6thhighestforeignexchangeThetourismindustryhas emergedas the 6thhighestforeignexchangeearnerinSri Lanka. (earnerinSri Lanka. (Foreign Exchange EarnersForeign Exchange Earners))

Thecommercialcities,Colombo, Kurunegalaand KandyofferbusinessThecommercialcities,Colombo, Kurunegalaand Kandyofferbusinesstravellers anarrayofbusiness opportunities andtradeoptions.travellers anarrayofbusiness opportunities andtradeoptions.

TheSri Lankangovernmenttogether withtheSri Lanka TourismTheSri Lankangovernmenttogether withtheSri Lanka TourismDevelopmentAuthority (SLTDA) arecommittedtothedevelopmentandDevelopmentAuthority (SLTDA) arecommittedtothedevelopmentandgrowthofthelocal Tourismindustry.growthofthelocal Tourismindustry.

ForgrowthofTourism Sector, Government has made provisionsForgrowthofTourism Sector, Government has made provisionsfor thesame inMahinda Chintana PolicyFramework.for thesame inMahinda Chintana PolicyFramework.


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The Mahinda Chintana PolicyThe Mahinda Chintana PolicyFrameworkFramework

The programmehopes tomovethetourismindustryfrommass tourismtoThe programmehopes tomovethetourismindustryfrommass tourismtoconcentratedmarketing, particularlyonhighincomeearners.concentratedmarketing, particularlyonhighincomeearners.

The programmes visionforthetourism sectoris tomakeSri LankatheThe programmes visionforthetourism sectoris tomakeSri LankatheforemostleisuredestinationintheSouthAsian Region.foremostleisuredestinationintheSouthAsian Region.

Keyobjectives includeKeyobjectives include Achieve2.0mntouristarrivals by2016.Achieve2.0mntouristarrivals by2016. Targetup scaleFree Independent Travellers (FITS), whoareTargetup scaleFree Independent Travellers (FITS), whoare

comparativelyhigh spenders.comparativelyhigh spenders. MaketourismSri Lankas thirdlargestforeignexchangeearnerMaketourismSri Lankas thirdlargestforeignexchangeearner Transformtourismtobethefastestjobcreatorandhelp reduceTransformtourismtobethefastestjobcreatorandhelp reduce

unemploymentnumbers.unemploymentnumbers.


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Performance of SriPerformance of Sri--LankaLankaTourismTourism

Thecivil warin1983 hadaffectedthetourismindustryofSriThecivil warin1983 hadaffectedthetourismindustryofSri--LankainaLankainanegative waybutnow aftertheendofLTTE war, thetourismmarketis setnegative waybutnow aftertheendofLTTE war, thetourismmarketis settorevive withabang !torevive withabang !

In June2009, atotalof30,234 tourists arrivedinSri Lanka, which showsIn June2009, atotalof30,234 tourists arrivedinSri Lanka, which showsanincreaseof8.1% comparedtothecorrespondingmonthin2008.anincreaseof8.1% comparedtothecorrespondingmonthin2008.

Despitetheglobaleconomicdownturn, theinternationaltouristarrivalsDespitetheglobaleconomicdownturn, theinternationaltouristarrivalscontinuedtoincreaseby1.7 percent, from 908millionarrivals in2007 tocontinuedtoincreaseby1.7 percent, from 908millionarrivals in2007 to924 millionarrivals in2008.924 millionarrivals in2008.

In200

8, Tourism sector provideddirectemploymentto 5

1,587 people.In

200

8, Tourism sector provideddirectemploymentto 5

1,587 people.


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Arrivals foryear2007: 4,94,008 Arrivals foryear2008: 4,38,475 Majorityofthetourists visitedSri Lankafor Holiday Purpose. This shows thatthereis lotof scopefordevelopmentofHotels, Resorts, etc.


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Mostofthetourists stayforanaverage periodof8-14 nights.

This shows thattheattractionfactorofSri Lankaas atourismdestinationis veryhigh.

Efforts onimproving TourismmarketofSri Lanka willbringinlotofrevenues forthecountryandthemainbeneficiaries willbethe HospitalitySector.


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Colombo & GreaterColombo, thecommercialcapitalis thetourist hot-spot withhighestoccupancyrates.

SouthCoastofSri Lankahas the secondhighestoccupancyafterColombo.

Resort Region 2007 2008

35.2%

21.6%

34.2%

46.1%

52.6%

57.1%


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Investment OppurtunitiesInvestment Oppurtunities

Following are Sri LankasTourism zones that are availablefor investmentFollowing are Sri LankasTourism zones that are availablefor investmentpurposes:purposes:KalpitiyaKalpitiya-- Beach Resortandislands inlagoonBeach Resortandislands inlagoonMarawilaMarawila-- Beach Resort withlagoon.Beach Resort withlagoon.WaikkalWaikkal-- Beach Resort with GinOyaBeach Resort with GinOyaNegomboNegombo-- Beach Resort withfishingcommunityBeach Resort withfishingcommunityColomboColombo-- Commercialcity withentertainmentCommercialcity withentertainment

Mt. LaviniaMt. Lavinia-- Beach Resortinclose proximitytoColomboBeach Resortinclose proximitytoColomboWadduwaWadduwa-- Beach Resort withfishingcommunityBeach Resort withfishingcommunityKalutaraKalutara-- Beach Resortinclose proximitytoColomboBeach Resortinclose proximitytoColomboBeruwalaBeruwala-- Beach Resort withlocalcommunityBeach Resort withlocalcommunityBentotaBentota-- Nationalholidayresortinthe westcoastNationalholidayresortinthe westcoastDedduwaDedduwa-- Lake Resort withfive IslandsLake Resort withfive IslandsMadu GangaMadu Ganga-- Lake Resort with16 islandsLake Resort with16 islandsBalapitiyaBalapitiya-- Beach ResortBeach ResortAhungallaAhungalla-- Beach Resortinclose proximitytoMadu GangaBeach Resortinclose proximitytoMadu GangaHikkaduwaHikkaduwa-- Beach Resort withoceanbasedactivitiesBeach Resort withoceanbasedactivitiesGalleGalle-- Worldheritage siteWorldheritage siteUnawatunaUnawatuna-- Beach Resort withlocalcommunityBeach Resort withlocalcommunityKoggalaKoggala-- Beach Resortand KoggalalagoonBeach Resortand KoggalalagoonWeligamaWeligama-- Beach Resort with stiltfishingBeach Resort with stiltfishingMirissaMirissa-- Beach Resort withfishingcommunityBeach Resort withfishingcommunityTangalleTangalle-- Beach Resort withlagoonsBeach Resort withlagoonsHambantotaHambantota-- Beach Resortand sandduneBeach Resortand sanddune


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TissamaharamaTissamaharama-- Sacredcityinclose proximityto wildlife parkSacredcityinclose proximityto wildlife park YalaYala-- Wildlife ResortWildlife Resort ArugambayArugambay-- Beach Resortfor surfingactivitiesBeach Resortfor surfingactivities PassekudahPassekudah-- Nationalholiday ResortintheeastcoastNationalholiday Resortintheeastcoast TrincomaleeTrincomalee-- OceanbasedcityOceanbasedcity NilaweliNilaweli-- Beach Resortinclose proximityto TrincomaleeBeach Resortinclose proximityto Trincomalee PinnawalaPinnawala-- Nature Park ResortNature Park Resort KandyKandy-- Heritage Resort withtemplesHeritage Resort withtemples Nuwara EliyaNuwara Eliya-- HillCountry ResortincoolclimateHillCountry Resortincoolclimate BandarawelaBandarawela-- HillCountry Resort with waterfallsHillCountry Resort with waterfalls MaskeliyaMaskeliya-- HillCountry Resort withteagardensHillCountry Resort withteagardens PolonnaruwaPolonnaruwa-- Heritage Resort withruins of11and12ADHeritage Resort withruins of11and12AD HabaranaHabarana-- Urbancityinclose proximitytotheheritage sitesUrbancityinclose proximitytotheheritage sites AnuradhapuraAnuradhapura-- Heritage Resort withruins of3BCto11ADHeritage Resort withruins of3BCto11AD VictoriaVictoria-- HillCountry Resort withareservoirHillCountry Resort withareservoir MataleMatale-- Hillcountry with spicegardensHillcountry with spicegardens DambullaDambulla-- SacredBuddhistCitySacredBuddhistCity SigiriyaSigiriya-- HeritageresortofRock FortressHeritageresortofRock Fortress GiritaleGiritale-- Heritage Resortborderinga LakeHeritage Resortborderinga Lake UdawalawaUdawalawa-- Wildlife park withareservoirWildlife park withareservoir WasgamuwaWasgamuwa-- Wildlife parkWildlife park RatnapuraRatnapura-- GemCityGemCity MataraMatara-- Beach Resort with HeritageBeach Resort with Heritage

Investment OppurtunitiesInvestment Oppurtunities(Contd.)(Contd.)


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FocusFocus

Anew tourismzoneunderdevelopmentin KalpitiyaacoastalregionandarchipelagoAnew tourismzoneunderdevelopmentin Kalpitiyaacoastalregionandarchipelagoof14 islands inthecountry's northof14 islands inthecountry's north--west.west.

AccordingtoSri Lanka's tourist promotionofficethe Kalpitiya Integrated TourismAccordingtoSri Lanka's tourist promotionofficethe Kalpitiya Integrated TourismDevelopment Project (KITRP), andnearbyislets inthe Puttalamarea willbebuiltas aDevelopment Project (KITRP), andnearbyislets inthe Puttalamarea willbebuiltas apremiumdestinationand willhosttoa stringofecopremiumdestinationand willhosttoa stringofeco--friendlyresorts.friendlyresorts.

The projectis expectedtogeneratefourtimes thecurrent US$79The projectis expectedtogeneratefourtimes thecurrent US$79--aa--day spendofanday spendofanaveragetouristandanumberoftop internationalbrandedhotels arebeingcourtedaveragetouristandanumberoftop internationalbrandedhotels arebeingcourtedforthedevelopment.forthedevelopment.

Intotal, the Kalpitiyaareaandislands contain 4,000 acres fordevelopment, mostofIntotal, the Kalpitiyaareaandislands contain 4,000 acres fordevelopment, mostofwhichis currentlygearedtowards agricultureandfishing.whichis currentlygearedtowards agricultureandfishing.

The Kalpitiya premiumzone whenfullydevelopedis expectedtoattractonemillionThe Kalpitiya premiumzone whenfullydevelopedis expectedtoattractonemilliontourists, andofficial sayis thelargest singletourism project promoted sofar. Thetourists, andofficial sayis thelargest singletourism project promoted sofar. Theunspoiledareaaround Kalpitiyahas someofthefinestbeaches anywhereinAsiaasunspoiledareaaround Kalpitiyahas someofthefinestbeaches anywhereinAsiaaswellas some premierdive sites.wellas some premierdive sites.


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Real Estate OverviewReal Estate Overview

Theinvestment potentialfromrealestateinSri Lankais significantbuttheTheinvestment potentialfromrealestateinSri Lankais significantbutthepropertymarketis immatureand suffers fromhavingagovernmentthatpropertymarketis immatureand suffers fromhavingagovernmentthatcannotcommittoattractingforeigndirectinvestment.cannotcommittoattractingforeigndirectinvestment.

PropertyTax:PropertyTax: 100%100%

EitheranonEitheranon--resident propertyinvestorcan purchasealeasehold propertyresident propertyinvestorcan purchasealeasehold propertywitha 99 yearleaseandacquiretherighttobuythefreeholdtitletothewitha 99 yearleaseandacquiretherighttobuythefreeholdtitletothepropertyifthe100% taxationruleis everrescinded.propertyifthe100% taxationruleis everrescinded.

Alternatively, those whobuy propertyinSri LankathroughalocalcompanyAlternatively, those whobuy propertyinSri Lankathroughalocalcompanystructure shouldensurethattheyarethe 99% shareholderofthestructure shouldensurethattheyarethe 99% shareholderofthecorporation.corporation.

Eitherofthe wayadopted willreducetheirtaxationliabilityfrom100% toEitherofthe wayadopted willreducetheirtaxationliabilityfrom100% to7%!7%!

AccordingtoSri Lanka's tourist promotionofficethe Kalpitiya IntegratedAccordingtoSri Lanka's tourist promotionofficethe Kalpitiya IntegratedTourism Development Project (KITRP), andnearbyislets inthe PuttalamTourism Development Project (KITRP), andnearbyislets inthe Puttalamarea willbebuiltas a premiumdestinationand willhosttoa stringofecoarea willbebuiltas a premiumdestinationand willhosttoa stringofeco--friendlyresorts.friendlyresorts.


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InferencesInferences

Thecountryhas agoodliteracyrate.Thecountryhas agoodliteracyrate.

Owingtolow population, the percapitaincomeis High.Owingtolow population, the percapitaincomeis High.

TheBanks have Low Penetration.TheBanks have Low Penetration.

The service sectoris themajorcontributortoThe service sectoris themajorcontributorto GDPGDP..

Themajor partofSri Lankais Rural.Themajor partofSri Lankais Rural.

Onanaverage, the populationis inthe workingageOnanaverage, the populationis inthe workingage--group.group.

Ithas poorinfrastructure withentiretransportation pressureon Roads.Ithas poorinfrastructure withentiretransportation pressureon Roads.


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Inferences (Contd.)Inferences (Contd.)

Theconditionoftheroads is very poorandmostofthemarecongested.Theconditionoftheroads is very poorandmostofthemarecongested.This calls forhugeinfrastructureinvestment.This calls forhugeinfrastructureinvestment.

Ports arethemainfocal pointforalltheinternationaltradecarriedout.Ports arethemainfocal pointforalltheinternationaltradecarriedout. \\

Developmentofthe ports is the keytothegrowthofthetransportationDevelopmentofthe ports is the keytothegrowthofthetransportation

industry whichcontributes closeto11% ofindustry whichcontributes closeto11% ofGDPGDP..

Propertytaxon100% makes itanunattractiveinvestmentdestination.Propertytaxon100% makes itanunattractiveinvestmentdestination.Butthereare ways to waiveitoff.Butthereare ways to waiveitoff.

ThenaturalbeautyofSri Lankamakes itaveryattractivetouristThenaturalbeautyofSri Lankamakes itaveryattractivetouristdestination.destination.

Theendofwaragainst LTTE has pavedthe wayforimmense potentialinTheendofwaragainst LTTE has pavedthe wayforimmense potentialinTourism Industry.Tourism Industry.

Therearelargenumberoftourist spots whichareyettobedevelopedandTherearelargenumberoftourist spots whichareyettobedevelopedandthis is agreatopportunityfor Real Estateindustry & Hospitalityindustry.this is agreatopportunityfor Real Estateindustry & Hospitalityindustry.


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Thank YouThank YouEthiopiaEthiopia

GabonGabon

GambiaGuineaGambiaGuinea--BissauCameronCongoBissauCameronCongo--BrazzavilleCongoBrazzavilleCongo--

KinshasaSenegalTschadCentralafrikanKinshasaSenegalTschadCentralafrikanRepublicZimbabweRepublicZimbabwe

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Sri Lanka (General Facts)