Business
BOI launching ‘strategic actions’ to add to SL’s attractiveness as investment destination
The Interview:
By Lynn Ockersz
The BOI is in the process of launching ‘strategic actions’ to add to Sri Lanka’s attractiveness as a top international investment destination. In keeping with this broad aim, the BOI is taking a lead role in setting up export processing zones with all pre-clearances, so that investors experience minimum hassle, besides paving the way for increased ease of doing business, in addition to initiating paperless documentation procedures to facilitate import and export activities, among other measures, BOI Chairman Sanjaya Mohottala said.
However, while pointing out that the BOI has “not got its fair share of the FDI pie” over the years, the BOI Chairman said in an interview with The Island Financial Review that ‘It’s time for the BOI to course correct, not only where FDI is concerned, but also when it comes to quality jobs, higher value addition and inclusive growth, so that a comprehensive impact is generated. ‘
As the Head of the BOI in which main directions do you hope to develop the institution?
The BOI is the country’s apex agency for attracting FDI into Sri Lanka. It plays a primary role in providing direction for the economy of the country, under the direct purview of His Excellency the President. As the apex investment promotion agency, it must compete with over 1,000 international investment promotion agencies for a global FDI pool that has dipped by 40%. Remaining equally competitive with these other agencies therefore to global investors against this backdrop is a challenging task. We govern ourselves with the core principles of ensuring the medium to long term policy framework remains competitive and relevant and that it is infused with a strong public private partnership, as we actively canvas and convince investors to lay their stake in Sri Lanka. We have seen how compelling examples of transformations such as Investindia have experienced over the recent past and are encouraged by the results these campaigns have yielded. Using these examples, we have also launched some strategic actions recently. The recently concluded Sri Lanka investment forum (SLIF 2021), which was facilitated to optimise opportunity for the country by providing first-hand experience to international investors on what Sri Lanka has to offer, taking a lead role in setting up export processing zones with all pre-clearances, so that investors experience minimal hassle and increased ease of doing business, and launching paperless documentation procedures to facilitate our import and export activities have all been activated in line with that direction.
Are BOI companies facing any special issues currently? If so, what are they?
Companies that fall under the purview of the BOI contribute to 85% of Sri Lanka’s industrial exports and a significant portion of Services exports. It is a challenging time for all of us given that tourism receipts have not brought in revenue to the country in the past 2 ½ years. The pandemic has also challenged the realisation of FDI as investor nations also deal with the situation in their home front. Exports therefore are critical for Sri Lanka, and the BOI is supporting these companies not only because it is our duty to do so, but also, because we consider it a national task that everyone must work together on. In this regard, we have worked with the Occupational Health Directorate at MOH, along with industries, to develop guidelines for companies to operate safely and have also administered vaccines to almost all the entities who are supporting this national cause to keep everyone safe and healthy. In addition, close to 5,000 ICC beds are currently being maintained by JAAF and BOI, in collaboration with FTZMA, to ensure that employees are well looked after. All of this has aided the current attendance turnout to hover around 80%.
What are your main suggestions on reviving the local economy amid the current constraints posed by the pandemic?
Our main task is to support both propping up the economy and economic activity to stay afloat. Our priority of course is the safety of the people, which is why we doubled down earlier this year to vaccinate all zonal and non-zonal based employees. Even though we have to deal with the pandemic currently, we must also use this time to lay the foundation for a post covid Sri Lanka. Which is why we have established two zones in the recent past – one in Hambantota for Pharmaceuticals, and the other in Eravur for Textiles and Apparel. We have also been able to secure and invite strategic investments like HCL to the country. These and several other initiatives have enabled us to secure USD 2.3bn worth of investment approvals and USD 1.4bn capital formation, half of which was FDI – all in 2020. We need to now accelerate this pace and introduce investments into the funnel faster.
How effective has the BOI been over the years in bringing in FDI?
The BOI was one of the first organisations of its kind that was set up 40 years ago to capitalise on the benefits of an open economy. And while the ambition was directed correctly, over the years, other BOI equivalent agencies have overtaken Sri Lanka, and we have not got our fair share of the FDI pie. It’s time to course correct, not only where FDI is concerned, but also, when it comes to quality jobs, higher value additions and inclusive growth, so that a comprehensive positive impact is generated.
Business
Beyond arrivals: Can tourism and hospitality power Sri Lanka’s next growth phase?
The Australian High Commission in Sri Lanka recently hosted the latest edition of its ConnectED Thought Leadership Series at the Australian High Commissioner’s Residence in Colombo, bringing together senior leaders from Sri Lanka’s tourism, hospitality, travel, events, education and related sectors.
The discussion, themed “Beyond Arrivals: Can Tourism and Hospitality Power Sri Lanka’s Next Growth Phase?”, focused on the role of tourism and hospitality beyond visitor arrival numbers, examining how the sector could contribute to Sri Lanka’s broader economic development.
The distinguished panel comprised Shiromal Cooray, Chairman and Managing Director of Jetwing Travels; Angeline Ondaatje, Chairperson of Tangerine Beach Hotels PLC, Royal Palms Beach Hotels PLC and Tangerine Tours; and Grant Dreher, Chief Executive Officer of William Angliss Institute Australia.
The discussion was moderated by Wayne Crosbie, Director – International and Business Development, William Angliss Institute Australia, who facilitated the conversation around the evolving needs of the tourism and hospitality industry and the importance of connecting education, skills development and workforce readiness with industry demand.
Adding a practical and experiential dimension to the evening, students from the Colombo Academy of Hospitality Management (CAHM) played an active role in delivering the cocktail reception for the distinguished guests.
Business
SL’s ‘Global Destination Marketing and Communication Campaign’ gets into top gear
A high-level discussion on the implementation of Sri Lanka’s Global Destination Marketing and Communication Campaign, supported by the World Bank, was held at the Ministry of Foreign Affairs, Foreign Employment and Tourism. The initiative marks a significant step towards strengthening Sri Lanka’s position as a competitive and attractive destination in the global tourism marketplace.
The meeting focused on the importance of adopting a long-term, data-driven approach to destination marketing, underpinned by comprehensive analysis of tourism demand and supply trends, visitor behaviour, destination branding, and international marketing strategies. Discussions also highlighted the need for a transparent procurement process and institutional capacity-building to ensure the successful implementation and sustainability of the campaign.
Participants welcomed the technical expertise and strategic guidance to be provided by MTI Consulting and Skift Inc./JD, whose support will contribute to the development and execution of a globally competitive destination marketing programme. Through strong collaboration between public and private sector stakeholders, the initiative seeks to establish a sustainable roadmap to guide Sri Lanka’s tourism promotion efforts and enhance the industry’s competitiveness in key international markets.
The campaign is expected to play a vital role in strengthening Sri Lanka’s tourism sector, supporting increased visitor arrivals, generating economic opportunities, and contributing to broader national economic growth.
The discussion was attended by Aruni Ranaraja, Secretary to the Ministry of Foreign Affairs, Foreign Employment and Tourism; Chairpersons and Chairmen of tourism institutions under the Ministry; representatives of SLAITO, TAASL, the Tourism Advisory Committee, the World Bank, MTI Consulting, and Skift Inc./JD; as well as H.P. Somathilaka, Director General of National Planning.
Business
Labour shortages are pushing Plantation Companies towards machines, data and a different kind of worker
Sri Lanka’s plantation sector is entering a new phase of transformation, as technology and innovation reshape how estates operate, manage resources and sustain productivity. Across the country’s tea estates and other plantations, machines are increasingly complementing skilled workers in tasks once done almost entirely by hand, while software and data bring new precision to decisions traditionally guided by experience.
Automated harvesters, pruning machines and drones are being deployed alongside GIS mapping, digital weighing systems and enterprise software. Though the technologies vary, they point to a common shift: plantations are finding smarter ways to meet rising demands with a changing workforce.
Mechanisation, however, is not without challenges. Sloping terrain, fragmented fields and crop variability limit where machinery can be effectively deployed. Still, as operating costs rise and labour availability tightens, the ability to combine human expertise with technology is becoming essential to sustaining productivity, competitiveness and the long-term viability of the industry.
Addressing the labour shortage
Sri Lanka’s plantation companies face a labour market that has changed from the one on which the industry was built. Migration, demographic changes and attraction from other sectors have made it increasingly difficult to retain workers for plantation work.
That is why mechanization is spreading beyond the most obvious applications. At Bogawantalawa Tea Estates PLC, machinery is being used for land preparation, pruning, weeding, harvesting, and agrochemical application. Selective machine harvesting and mechanical pruning have been introduced in tea, while mechanized and semi-mechanized methods are being extended to other crops.
Agarapatana Plantations PLC has taken a similar approach. Fuel-powered and battery-operated harvesters are being used in the field, while backhoes assist with uprooting and levelling new clearings. Drones are being deployed for foliar spraying. In factories, automation and energy efficient machineries are being introduced where production volumes justify the investment.
The changing face of plantation technology
Beyond mechanisation, plantations are steadily evolving into data-driven businesses, with RPC’s increasingly adopting technologies that are reshaping day-to-day operations. Agarapatana Plantations is rolling out automated green-leaf weighing systems with facial recognition and planning fertigation-based irrigation. Ten factories already operate on solar power, with six of them being carbon neutral.
Likewise, Elpitiya Plantations PLC has introduced Ballotronix tea-leaf readers to assess leaf composition, supported by iHarvest and Microsoft Dynamics 365 Business Central, giving managers real-time visibility across thousands of hectares.
Talawakelle Tea Estates PLC has similarly pursued transformation since 1992, introducing hot-water boilers across all factories from 2008, electronic weighing with real time data collection since 2015, as well as tablets, computers and a new payroll system for employees. Rooftop solar along with three in-house hydro power plants located in Palmerston, Radella and Somerset estates provide renewable energy. State of the art, modern colour separators have been provided to its Low Grown factories. Since 2025, drones are been used for chemical/ foliar spraying. These developments highlight how the plantation sector has steadily embraced technology for greater efficiency and sustainability.
The technological shift does not stop at the edge of the field as factories are becoming increasingly automated, giving special emphasis to energy efficient equipment. At Elpitiya, more than 80% of their factories are mechanized with state of the art machineries, with the intention to raise both capacity and efficiency.
On the other hand, Malwatte Valley Plantations PLC illustrates another possibility. After expanding its cinnamon cultivation, the company encountered a shortage of skilled peelers. Its engineers responded by developing and patenting cinnamon-peeling machinery.
That is more than a labour-saving exercise. It shows how a constraint can encourage technological innovation- and potentially allow an industry to expand beyond the limits imposed by the supply of specialised labour.
The company is also investing in automated factory systems and machinery for “matcha” production. Technology, in this case, is being used not merely to reduce costs but to strengthen value addition to products.
Machines will not make workers obsolete
Workers are being trained to use harvesters, pruning equipment and spraying machinery, while new roles are emerging around upkeep, data collection and digital reporting.
Horana Plantations PLC, for instance, has introduced machine plucking to address labour shortages. The company reports improvement in yields, consistency and labour productivity, while technology-driven harvesting has also been used to make plantation work more attractive to younger workers.
“Technology has become a prerequisite requirement for the plantation sector as we deal with labour shortages and the need to improve productivity,” Secretary General of the Planters’ Association of Ceylon, Lalith Obeyesekere stated. He noted that priority should be given to technologies suited to Sri Lankan conditions, supported by training and enabling workers to use them effectively. “That is a more useful way of thinking about mechanisation than simply counting the jobs a machine might replace”, Obeyesekere went on to note. He is confident that these changes will raise the productivity and profitability in the sector.
The next harvest
The direction of travel is becoming clearer. Precision agriculture, digital crop forecasting, automated weather monitoring, smart irrigation, digital traceability and further mechanisation are likely to become more common.
That does not mean the end of the plantation worker, nor the disappearance of generations of agricultural knowledge. It means that both will increasingly operate alongside technology.
For an industry whose competitiveness has long depended on its ability to extract value from land and labour, the new imperative is simpler: create more avenues, waste less and make each worker- and each hectare- more productive.
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