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Contact Information
Ministry of Agriculture, Animal Production & Development, Rural Industries Development,
Fisheries & Tourism, Eastern Province
Website: http://www.ep.gov.lk/minagriindex.asp
Email: minagriculture@ep.gov.lk
(+94)-026-3269976
(+94)-026-2223076
Acknowledgements
The Ministry of Agriculture, Animal Production & Development, Rural Industries
Development, Fisheries & Tourism of the Eastern Province has developed this series of
investment proposals in consultation with several industry stakeholders. It wishes to thank all
relevant stakeholders and government institutions for sharing their valuable resources and
providing information that made the financial estimates possible. The Ministry wishes to thank
USAID and the USAID-supported VEGA FEG Program for the invaluable support rendered
towards the economic development of the Eastern Province, especially for encouraging large
scale investments and building capacity of human resources by providing technical assistance
since the end of the conflict.
This publication is made possible by the support of the American people through the United States Agency for
International Development (USAID). The contents are the sole responsibility of the Ministry of Agriculture, Animal
Production & Development, Rural Industries Development, Fisheries & Tourism of the Eastern Province and do not
necessarily reflect the views of USAID or the United States Government.
This publication was produced for review by the United States Agency for International Development. It was prepared
byMinistry of Agriculture, Animal Production & Development, Rural Industries Development, Fisheries& Tourism of the
Eastern Province.
ii
Contents
Page No
01
02
03
05
06
Investment Incentives
07
09
Useful Contacts
11
Value in LKR
18,700,000
815,000
4,000,000
400,000
3,200,000
3. Equipment
200,000
850,000
100,000
6. Irrigation System
80,000
7. Building
200,000
28,545,000
1,012,500
56,250
1,004,063
2,760,000
3. Veterinary Cost
340,800
4. Land Lease
412,500
25,000
Total Cost
5,611,113
Revenue Estimates
Sale of Young Bucks (1785 Nos. of 17 kg each @400/Kg)
12,138,000
12,316,500
Sale of manure
400,000
24,854,500
At current market rates young bucks may be sold at LKR400/kg and young does at LKR
460/kg. It is expected that the weight of the young animals will be 17kg per buck and 15kg
per doe. Based on these rates the investment will generate a payback in under two years with
an internal rate of return of 53%. Table 3 shows the investment ratios.
Table 3 Investment Ratios
Pay Back Period
2.28
NPV (LKR)
32,919,854
IRR
52.62%
ROI
109.98%
45,692,446
78,612,300
1.72
Investment Incentives
Government incentives are available in the agriculture sector for farming associated with advanced
technology, distribution, collection & marketing, storage, cold rooms, ice plants, animal husbandry
and out grower schemes, plant & nursery, pre/post harvest management, cultivation of plants of any
description. Table 4 below shows the current investment incentives available for new companies.
Table 4: Investment Incentives for Investors under BOI Regulations
Investment Category
Small investment
Medium scale investment
Large scale Investment
Minimum Investment
LKR 25 Million
LKR 50 100 Million
LKR 100 200 Million
LKR Over 200 Million
LKR 300 500 Million
LKR 500 700 Million
Tax Holiday
04 Years
04 Years
05 Years
06 Years
06 Years
07 Years
08 Years
09 Years
10 Years
12 Years
Sri Lanka scores well on the World Bank Ease of Doing Business Index ranking 81 out of 189 countries
surveyed and is far ahead of comparative countries in the region.
Sri Lanka
81
Maldives
95
Pakistan
107
Nepal
108
121
Bangladesh
129
India
132
0
20
40
60
80
100
120
140
Figure 2 below charts the procedure for application for Board of Investment approval.
Assigning of a
Project Officer to
Guide the Investor
Letter of Acknowledgement of
Business Activity
Opening of
Bank A/C S/A
(Optional)
Incorporation of Company
(Department of Registrar of Company)
Site Approval
(Engineering
Approvals DeptBOI)
Environmental
Clearance
(Environment Dept.
BOI/ CEA)
Collect the Draft
Agreement
(Legal Dept- BOI)
Opening of
Bank A/C
(FCBU/SIA)
Development Permit
(If applicable only)
Commence Implementation
(Within the specified
period)
Utilities
Electricity:
- Ceylon Electricity
Board
Water:
- National Water
Supply &Drainage
Board
Telecommunication:
- SLT/ Private
Certificate of
Conformity
(COC)
(If applicable only)
Applicant
15
Lease
Indenture
Land
Registry
Reques 9
1
Divisional Secretary
14
2
Recommendation
7
Valuation
Calling
6
Approvals
13
Lease
Indenture
Valuation
Department
PLC
3
Recommendation
Diagram
Land Commissioner
General
4
Recommendation
5
Approval
Survey
Requisition
Lease
Indenture
11
Leases for
Signature
Presidential Secretariat
10
Preparation of
Lease
Conditions for granting state lands on long term lease for the special promotion projects
1. Special Promotion Projects are:
i.
Approved cabinet project
ii.
A project approved by the board of investment
iii.
A project approved by the ministry of industries
iv.
A project with a special patronage of any state affiliated institution
10
Useful Contacts
Eastern Province
Kanniya Road
Varothayanagar
Trincomalee
Sri Lanka
Tel : +94 26 2222441
Fax: +94 11 2222025
E -mail: minagriculture@ep.gov.lk
Website: www.ep.gov.lk
Board of Investment
Level 24 &26 West Tower
World Trade Centre
Echelo Square
Colombo 01
Sri Lanka
Tel : +94 11 2434403
Fax: +94 11 2447994
E -mail: infoboi@boi.lk
Website: www.investsrilanka.com
11