Sri Lanka has a population of 25 million, with Sinhala as the official language and a diverse religious demographic, including a majority Buddhist population. Since emerging from a 30-year civil war in 2009, the economy has shifted towards tourism and foreign investment, with significant projects like the Colombo Port City development being backed by China. Despite challenges such as social unrest and a growing judicial system, there are ongoing infrastructure developments and foreign interest in various sectors including construction and power projects.

3. Sri Lanka Demographics
Population – 25 Million
Official Language – Sinhala
• Buddhist- 69.0%
• Muslim – 7.6%
• Hindu – 7.1 %
• Christian – 6.2%
Capital - Colombo
Rainfall – October to January
Provinces – 9 nos
Districts – 25 nos
Area – 65,000 Km2
( Tamil Nadu is 130,000 Km2)
GDP – US$ 67.18 Billion
India – US$ 1.877 Trillion
Tamilnadu – US 210 Billion
Source - Wikipedia

4. Sri Lanka History
1. Ceylon became Independent in 1948 from British Rule
2. Became Republic in 1972
3. Civil war between LTTE lasted for 30 years and ended in 2009 under President
Shri. Mahinda Rajapakshe.
President of SriLanka
Shri. Matripala SiriSena
Prime Minister –
Shri. Ranil Vikrashinghe

5. Understanding Sri Lanka
Cultural issues
1. After the end of the War in 2009, Sri Lanka grew with major revenue from Tourism.
2. All commodities are imported from other countries.
3. Developed strong Ties with China and signed MOUs with China for Colombo Port
city ( which is under construction ) & Hambantota Port ( US$ 8 Billion Deal )
4. Judicial System is growing and not YET matured. ( recently the court ruled for change in
MOU terms with china for Hambantota Port Project after 2 years of signing the Agreement)
5. Social unrest continues between groups / religion
6. Political Stability changes quickly due to its small population base.
7. Criminal Activities are Less
8. Nation had developed good public habits of cleanliness and safety ( far better than
many Asian countries )
9. Continental Food habits

6. Growth of Economy
during Last 10 years
1. Present GDP of Sri Lanka is USD 67 Billion ( i.e. 1/3 of Tamil Nadu GDP )
2. Main source of income is Tourism
3. Almost all commodities are imported including cement & steel.
4. After the war ( in 2009), Sri Lanka attracted heavy foreign investments from
ADB/WB/Japan/China - during the President ship of Shri. Mahinda Rajpakse
5. 2009 to 2015 is a good period in Sri Lankan Development History
6. Shri. Sirisena formed Govt. in Jan 2015 and focused on the improvements to
regulatory framework. So effectively, development took back seat.
7. Now again after 2 years of Low development phase, many projects kick started in
Sri Lanka
8. Expecting the same will continue for next 5 years.
Source - Wikipedia

7. Business in Sri-Lanka
1. Business started flourishing after the war i.e. from 2009
2. Few Sri Lankan companies such as JAT Holdings, Expo-Lanka, Navaloka, Sanken
Lanka etc. have grown during Last 10 years.
3. Many Chinese and European companies also started operations in Sri Lanka.
4. Hospitality Industry particularly is Big Industry and growing
5. Most of the Foreign companies come thru “Board of Investment (BOI) ”. BOI
approval will provide edge and also provide resident visas for the company
executives and selective manpower on project to project basis.
6. Chinese Govt. is showing great interest in Sri-Lanka and Investing heavily.
7. In view of tourism interests many Govt. to Govt. projects are also in progress.
8. Private investors from India, Russia , Korea and China are investing in Colombo
real estate business.

8. Major Projects under Implementation
Colombo Port City Large reclamation, berth construction, cargo handling , and
housing is being planned in North Colombo. The project is
funded by Chinese and construction work is in full swing.
Central Expressway 112 Kms Long Colombo to Kandy Expressway Project .
Presently 40 Kms was awarded to Local Construction
companies ( Navaloka, Acess , Maga, Tuduaw, Inframax,
Sankenlanka etc. ) Last 40 kms is Likely to be awarded to a
Japanese firm ( funding agency ) and Starting 32 Kms is
awarded to MCC ( Chinese Co )
Jafna Desalination
Project
Funding to be arranged
Road Network in
SriLanka
There are many projects in Road Network. However
Funding is to be arranged. Details to be sourced.
Flyovers in the city Some are under construction and some are yet to be
announced

9. Railway Network Total investment proposed is 2 Billion USD. Earlier few
projects were constructed by IRCON in Jafna Area. Now
SriLanka Govt is looking for private investment to improve
the existing poor Railway Network. The investment will
cover modernization of existing and construction of new
lines incl. rolling stock.
Kelani River Flood
improvement
Colombo city is prone to flood water from Kelani River.
Presently mitigation works funded by World Bank are in
progress.
Irrigation works Water supply projects by L&T and Ion Exchange are in
progress in Colombo. Also a large water supply project is in
progress in Kandy and other locations across SriLanka.
Housing Projects Presently many Low cost housing projects are in progress
with deferred payment mechanism. Many indian
contractors such as IVRCL, BGShirke, TATA Housing, are
executed / executing the works with finance from various
international financial institutions.

10. Housing/Hotel Projects
(Private)
Presently many Private Investors are investing in
construction of Hotels / Real-estate thru approval of BOI
such as Garware, TATA, IVRCL, ODEL, etc.
Dam Rehabilitation
Works
There are few dams which are old and need rehabilitation.
Implementation Pending funding.
Piling and Ground
Improvement works
In view of heavy investment in the construction of hotels
and Real-estate projects in Colombo, there is a large
requirement of Agencies for undertaking Piling works.
Existing contractors are not able to meet the present
demand.
Power Projects Present installed Power Plant Capacity is 3932 MW. Out of
which 2115 MW –Coal Fired, 1665 MW – Hydro-Power and
balance 152 MW is Solar Power. As a policy Sri-Lanka
encourages renewable power and discourages
environmentally unfriendly coal based power plants.
Sampur Power Plant initially planned as Coal fired is now
changed to LNG based power plant with construction of
LNG Jetty at Sampur ( proposed )

11. Port Projects Colombo Port & Hanmanbota Port is under Chinese.
Trinconmalle port is offered to India. However Govt. of
India to take a decision as regard to Trinconmalle deep sea
port.

12. Altair Towers under Construction by M/s
Shapoorji SriLanka

13. Shangri-La Towers Construction by CHCC &
Waterfront Project Construction by Hyundai

14. Infra Business in Sri-Lanka
1. Construction Business is growing steadily since 2009. However activity is low
during Jan 2015 to Dec 2016. Now construction activity restarted again.
2. Piling & Building Construction is predominantly visible in Colombo.
3. Other projects such as irrigation works, power projects, transmission, water-
supply, road and railway works are being implemented in phased manner
based on the investments available.
4. G2G projects are an important mode for acquiring construction business.
However due to shortage of funds/ high debts, Govt of SriLanka is selective
in provide Govt. Sovereign Guarantees.
5. Resident Visas for engaging labor is key issue for fulfillment of commitments.
6. Almost all construction material including Cement & Steel are being imported

15. International Construction Companies
Operating in Sri-Lanka
China Harbor ( CHCC ) Constructing High Rise towers
China State Construction Company Construction few Towers
China Pipeline Construction Started few projects
Bauer, Germany Piling equipment
Mait Equipment, Italy Piling equipment
Alstom Turbine Equipment
Sino Hydro Looking for projects
China Geo Engineering Executing 1 No pump house project
Ludwig Pfeiffer, Australia Looking for projects
Hyundai Engineering Executing Large Hotel Project
Keangnam, Korea Executing Large Hotel Project

16. Registration Process
1. Any foreign company can be registered in SriLanka and undertake business.
However, work visas will NOT be provided for foreign nationals under this
category.
2. In case the company gets approval from “Board of Investment(BOI)”, then
foreign companies will have access for visas for workmen / employees.
3. BOI approval is of 2 types i.e. (a) Section 17 which involves investment of
minimum USD 250000 where the company is eligible for customs duty
exemption on project basis (b) Section 16B, which involves visible investment
( part in cash and part thru equipment resources). As on date, there is no duty
on construction machinery except for handling / transportation charges. So
approval under section 16 B would be best suitable

17. 4. Local office address is required for registration with ROC purpose. Also,
Local staff can be recruited on consultancy basis.
7. Registration process will take 2 months and will cost approx. USD 50,000 in
cash + Equipment to show as Investment.
8. After checking the availability of the Name, Articles of Association should be
submitted along with declaration signed by Shareholders with Sri Lanka
Address & proposed List of Directors for Sri Lankan Subsidiary
9. Equipment which is being shown as Investment should not be older than 2
years.
10.The application for BOI should be completed with the valuation certificates of
the equipment proposed to be deployed

18. BOI – Application ( Sample Copy)

19. Broad Sources of
Infra Market in SriLanka
• Infra Project funded by Multilateral Agencies Such as
ADB/World Bank etc.
• Sri Lankan Govt. Funded Projects
• GOI funded Projects
• Private Sector Projects such as hotels/Commercial
Complexes etc.
• Sri Lankan Govt Projects where funds are NOT
available, we shall play the role of facilitator and
arrange financial closure.

20. Present Opportunities in in Sri-Lanka
ODEL shopping Complex Design & Construction of 5 Level basement including Piling
Garware Housing Project Construction of Pile Foundations for High Rise Mid segment
housing project
Torrington & Mutwal Micro
Tunnels
World Bank funded flood mitigation projects. NIT announced,
Documents purchased and attended the Pre Bid meeting
Upper Elahera Irrigation
Project
ADB funded project involving construction of 8 Kms Long 6 m
finished diameter Tunnels along with minor structures. Date of
submission is on 31st May and Pre Bid meeting is scheduled on
24th April.
Central Expressway Out of 112 Kms Highway, 40 Kms was awarded to Local agencies.
Balance 70 kms is Likely to be awarded to Chinese and Japanese
contractors.
Sampur LNG terminal Earlier decision for a coal fired power plant is now changed to
LNG based plant . So a LNG terminal also is being planned near
Sampur for handling LNG.

21. Airport Extn. Project Proposed Airport extension project is under negotiation with
European agencies. There will be Large piling and ground
improvement works which
Colombo LRT Discussions are in progress for the construction of LRT in Colombo
as a G2G project.
Housing / Hotel Projects by
Private investors
There are many building projects being implemented by Private
Investors from India, Russia, Korea etc.

22. Benefits
• Will be part of Growing Economy
• Margins are Decent
• Work Culture and construction practices matches International Standards
and policies
• Will open markets into Large International projects in Africa / other South
Asian Countries.

23. RISK MITIGATION
In case of Low market conditions, High
Establishment Cost will reduce margins
Maintain Small Office and Low
establishment. Engage Local staff
Since Sri Lanka is a growing economy, there
can be changes to Legislation which can be
affect business operations for foreign
nationals
Since Sri Lanka is small nation, Relationship
holds key.
In case of war or any Bi Lateral issues
between India , SriLanka & China can affect
business operations
Maximum risk will be the capital
construction equipment which can be
covered with suitable Insurance
Risk and Mitigation

24. Best Suggested Strategy for Sri-Lanka
Establish and Start with small works/ supplies in Year 1.
Increase business activity in Year 2 with G2G projects / pre Tie-
ups.
Identify Multilateral Funded projects and secure Large Orders in
Year 3.

25. THANK YOU