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  • Foreign Trade Zones

    Sri Lanka has six free trade zones, also called export processing zones, which are administered by the BOI. The oldest of them, the Katunayake and Biyagama Zones, located north of Colombo near the Bandaranaike International Airport, are fully occupied. The third zone is located at Koggala on the southern coast. Three new mini export processing zones were opened in 1997-1999. They are located north-east of Colombo, in Mirigama, Malwatte and Wathupitiwala. There are nearly 200 foreign export processing enterprises operating in these six export processing zones. In addition there are three industrial parks that have both export-oriented and non-export oriented factories. They are located in Pallekelle, near Kandy in central Sri Lanka, in Seethawaka in Avissawela about 60 kilometers from Colombo, and in Hambantota in the deep south. In addition, several other export processing zones and industrial estates are being developed.

    In the past, industrialists preferred to locate their factories in close proximity to Colombo harbor or airport to reduce transport cost and save time. However, excessive concentration of industries around Colombo has created problems such as scarcity of labor and poor infrastructure, environmental pollution, escalation of real estate prices and congestion in the city. Therefore, the BOI now actively encourages the setting up of export-oriented factories in the newly developed industrial zones. BOI also finds it easy to provide infrastructure facilities and security, as well as monitor enterprises when they are located in the zones.







  Copyright By :  Kish Trade Promotion Center  2002