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Ministry of Economic Development Macro Action Plan 2011-2015 . Presented by P B Jayasundera Secretary, Ministry of Economic Development Under the guidance of Hon. Basil Rajapaksa Minister of Economic Development. 1. Making the Vision a Reality. 2. Interfacing Development .

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Ministry of Economic DevelopmentMacro Action Plan 2011-2015

Presented by P B Jayasundera Secretary, Ministry of Economic Development Under the guidance of Hon. Basil RajapaksaMinister of Economic Development



Interfacing Development

Self Reliant Household Economy

Divi neguma

  • Backyard cultivation
  • Cottage industries, Animal


  • Medium and long term crops

Empowered Community (Villages)

Gama neguma

  • Access to Electricity, Water, Irrigation, Sanitation, Primary Health and Education
  • Livelihood support and Community based economy


  • Community friendly local authority
  • Clean environment
  • Business friendly systems and procedures

Developed Townships

Regional Growth centers

  • Connectivity through critical infrastructure development
  • Connecting townships
  • Setting up flagship market centers and community facilities

Shared Development

Strategic Initiatives

Emerging Economy

  • National Botanical and Zoological Gardens network
  • Tourism Economy
  • Private Sector development


divineguma self reliant household economic units
Divineguma – Self Reliant Household Economic Units
  • Servicing million home economies to empowerback yard economic activities- Agriculture, Fisheries and Live stock , Small family enterprises etc by
    • Provision of seeds and planting material
    • Development of green houses , seed farms, poly tunnels, promotional nurseries, agro wells, organic fertilizer etc.
    • Encouraging to plant and cultivate at least three coconut plants or other trees of commercial value in each home garden
    • Development of cottage industries, handicrafts, artistic work , handloom enterprises and floriculture villages
    • Promotion of self employment


objectives of divineguma a three phase graduation

Phase I - Agriculture & Food production – Food security

Phase II- Fisheries & Livestock- Nutritionally balanced consumption

Phase III- Small Enterprises – Value added Economy to sustain Phases I & II

Objectives of Divineguma- A three phase graduation


divineguma implementation mechanism
Divineguma - Implementation Mechanism

Cabinet Level Steering Committee (policy guidance) headed by Senior Ministers

Operational Working Group headed by the Minister

District Development Committee (participation of district political representatives and officials)

District Operation and Review headed by the District Secretary

Divisional Development Committees

Divisional Development Committees headed by the Divisional Secretary

Operational Services(Grama Niladari, Samurdhi Niladari, Govi Niladari and Family Health Officer)



Divineguma – Million Household Economic Units

  • This initiative was proposed by H.E the president in the 2011 Budget, targeting one million household economies in all Grama Niladari divisions in the country
  • 09 Public awareness meetings at national level and 38 district and divisional level meetings were conducted by the Hon Minister with the participation of Ministers and Secretaries of Line Ministries, provincial representatives and other stake holders
  • Initial supply of seed, guidelines, hand books etc were provided by the Ministry
  • As of now 1,455,187 home economic units under divineguma are functional with predominant engagement in food production

Inauguration of Divi Neguma Programme



Divineguma – Million Household Economic Units

Home Garden - Valachchenai

Poultry Farming - Horana

  • There are 1,356,594 home garden units and 94,011 livestock farming units functioning under divineguma across the whole country
  • Retired public servants, civil society organisations and women have taken active interest in divineguma



Divineguma – Million Household Economic Units

Self Employment Support Program

  • Under self employment support program various sectors have been identified
  • Mobile shops concept was introduced in urban centers by providing leasing schemes. 162 vehicles have been distributed initially in Colombo. This will be popularised in other major townships based on the demand
  • Pavement businesses have been re-arranged in Pettah, Nugegoda and Galle



Divineguma – Million Household Economic Units

Divineguma- Initial Push

  • The first stage concentrated heavily on agriculture, livestock and planting for home gardens.
  • Divineguma program will be extended to cover cottage industries promoting local production of gift items, local textiles, handicrafts, artistic creations, spices, bricks , clay and cement based building material etc to meet the increased demand arising from the development of various industries such as tourism , apparel , construction Industries.
  • Technology transfer through the initiatives of the Ministry of Technology and Research.


services at door step

25 Households

50 Households

25 Households

Deserving Households

Family Health Officer

Technical and extension services

Grama Niladari

Samurdhi Development Assistant

Agriculture Research & Productivity Assistant

100 Household community

Services at door step



gamaneguma empowering each village
Gamaneguma – Empowering Each Village
  • Provision of rural infrastructure to have access to Electricity, Water, Sanitation , Communication, Roads, Minor irrigation
  • Filling gaps – Maternity and Health Care Centers, Pre-schools, Market places, storages etc on a need basis
  • Livelihood development – One Village-One Crop, Agriculture, Livestock, Fisheries, Trade, Self employment
  • Restoration of abandoned/substandard projects


gamaneguma operational arrangements
Gamaneguma- Operational Arrangements

Overall National Program –Ministry of Economic Development

District Development Committees(Need assessment and prioritisation)

Divisional Development Committees

(Identification of projects, programs and budget)

Community Level Identification

Implementation by Community Participation


gamaneguma total solution
Gamaneguma – Total Solution


  • Access to roads
  • Access to electricity
  • Access to safe drinking water and sanitation
  • Access to small irrigation
  • Quality health and education
  • Livelihood development



Gamaneguma-Empowering each VillageSmall Irrigation

  • During 2006- 2011 period 4,699 such small irrigation projects with a cost of Rs 1737.5 Mn have been completed in various villages scattered around Sri Lanka.
  • 716,438 farmers got access to water to cultivate 187,960 acres.
  • Benefits expanded to environment and fauna and flora.

Ussana Irrigation scheme, Matale District

Gonawa wewa, Anuradapura District



Gamaneguma-Empowering each Village Electricity

  • 7,785 rural electrification projects have been implemented with a cost of Rs 2,370 Mn
  • These schemes have provided access to electricity to 400,467 households
  • It has benefited rural schools, hospitals, religious places and access to IT and computers in

rural Sri Lanka

  • Electricity has promoted rural investment, storages, small industries and agricultural processing

Matale- Bogahalanda Electricity Project



Gamaneguma-Empowering each Village- Access to quality road

  • 61, 226 projects consisting of concrete roads, small bridges and improvement to rural and

agricultural roads have been completed with a cost of Rs 26,124 Mn

  • A population of about 700,000 have gained access to such roads

Karandeniya – Thewaththa Bridge


Addaragoda - Kandegoda Road


Gamaneguma-Empowering each Village- Community water

  • 2,864 projects with each project having capacity of 5000 liters have been completed with a cost of Rs 1,133.3 Mn
  • A population of 504,200 have gained access to quality drinking water
  • Access to quality drinking water has improved health standard of the rural community

Water Supply Scheme - Adampan

Karamba Drinking water project - Kalpitiya



Gamaneguma-Empowering each Village- Quality housing for the poor

Built House

Old House

  • 18,950 houses have been built through Diriya Piyasa (Samurdhi Housing) at a cost of Rs 1,201 Mn
  • Toilets ,and basic facilities (access to quality water) have been provided to improve low income households
  • Cadjan thatched and temporary houses are being converted to quality houses



Gamaneguma-Empowering each Village- Livelihood Development

  • 14,341 livelihood projects targeting agricultural processing , livestock ,

handicraft, building material, light engineering, carpentry etc have been promoted.

  • This has contributed to high income

and new employment for 2,83,876 people.

  • A number of households have emerged as entrepreneurs.
  • MOED proposes to form Samurdhi Entrepreneurs Chamber

(SEC) to harness an enterprising society in villages.

Cinnamon chopping- Ratnapura


addressing substandard work
Addressing substandard work
  • Some of the projects demonstrate substandard quality, incomplete work and inappropriate projects
  • Regardless of who is responsible, economic development requires correction of those and put those projects right to give the full benefits to the people

Playground in Welgala

Nena Sala in Ibbagamuwa

Road in Mutthettugala



Achievements – country witnessed a marked reduction in poverty in 5 years

Poverty Reduction



The reduction in poverty is reflected in the number of Samurdi beneficiaries.Despite the reduction in beneficiaries, expenditure on Samurdhi is maintained to provide enhanced assistance to deserving people.Even if we assume doubled the poverty head count at 17.2%the no of people receiving benefits account for 32.4%

Samurdhi Expenditure (Rs Mn)


the strength
The strength
  • Samurdhi allowance scheme has generated compulsory savings of Rs 17 Bn of which, Rs 3 Bn is on reserve
  • It has promoted 1043 functioning Samurdhi Banking Societies and generated voluntary savings of Rs 15 Bn
  • Savings habits have promoted leasing and other financing instruments supporting Samurdhi livelihood activities and enterprises
  • Divineguma and Gamaneguma have created the opportunities for them to move out of poverty trap


delivering commitment
Delivering commitment

“fid÷re njska, fifkyiska yd fi!kao¾hfhka msreKq .u ms<sn| ud olsk isyskh “.u keÕ=u” f,i h:d¾:hla njg m;a lrus' oYl .Kkdj ;=< wfma oEia bosrsmsgoS u msrsySug ,la jq .u mqk¾cSjkh lrus'”

Mahinda Chintana- Vision for the Future-2005


pura neguma empowering local authorities two initiatives to finance from adb credit facility
Pura Neguma- Empowering Local Authorities- Two initiatives to finance from ADB credit facility
  • Local Authority Empowerment Program –Uthuru Wasanthaya and Nagenahira Navodaya –
  • Local Authority Empowerment Program – Local Government & Provincial Council Ministry (proposed for the pradesheeya sabhas)


pura neguma northern sector
Pura Neguma- Northern sector

Canal System



Community & Health Centre

Children s’ Park


pura neguma operational arrangements
Pura Neguma – Operational Arrangements

National Steering Committee- co chaired by

Minister of Provincial Council & Local Govt. and Minister of Economic Development

Funding and Supervision- Ministry of Provincial Council & Local Govt. and Ministry of Economic Development

Implementation - by eligible Pradesheeya Sabhas (committed to simplified systems and procedures, clean environment and community infrastructure, Sathi pola and basic needs improvement)


implementation of 2011 budget proposal sathi pola
Implementation of 2011 Budget proposal- Sathi pola
  • 2011 Budget proposed to modernise sathi pola, three wheel stations, mobile shops, small boutiques around religious and common places to add value to small timers at least cost
  • These initiatives will also provide openings for direct market access to producers and consumers without intermediaries
  • Does not involve heavy overheads and expenditure


balanced regional development interfacing by ministry of economic development
Balanced Regional Development –Interfacing by Ministry of Economic Development
  • Priorities –
  • 3,000 km Intra Provincial Road Rehabilitation Program
  • 30,000 Minor Tanks and Irrigation Rehabilitation Program
  • Flagship common facilities-

Galle Bus Stand Construction of shops for pavement hawkers Relocation facilities for displaced markets

  • Selected Economic Development Initiatives- Dutch Canal Rehabilitation to support Tourism corridor- from Wattala to Negombo (old tourism resort area) Small townships


intra provincial roads
Intra Provincial Roads
  • Three year program has been designed to restore intra provincial roads to fill gaps in road network development program implemented by RDA , Provincial councils and District secretariats
  • All 25 districts and 324 divisional secretariat areas will be reached simultaneously in three phases Phase I- 30,000 km of roads - 2011 Phase II- 45,000 km of roads - 2012

Phase III- 60,000 km of roads- 2013

  • All roads will be carpeted with concreting supports, drainage and culverts and natural water ways


intra provincial roads35
Intra Provincial Roads

Dambagalla Medagama Road (14.440km)Madagama DSD in Monaragala DistrictExpenditure Rs. 6,191,154.52

Warakagoda Frosester Ferry Road (3km)

Bulathsinghala in Kaluthara District

Project Cost Rs. 30 Mn

Bonagala Rukgahawila Road (3.8km)

Attanagalla DSD in Gampaha District

Project Cost Rs. 38 Mn


minor tanks and irrigation
Minor Tanks and Irrigation
  • Three year program has been designed to restore rural irrigation systems and abandoned systems to fill gaps in irrigation network development program implemented by the Department of Irrigation , Provincial Authorities and Agrarian Service Department
  • Agricultural areas will be reached simultaneously in three phases during off cultivation periods Phase I - 12,000 systems - 2011 Phase II- 13,000 systems - 2012 Phase III- 15,000 systems - 2013
  • All irrigation system development projects will be implemented with community participation


rehabilitation of irrigation systems
Rehabilitation of Irrigation systems






flagship interventions
Flagship Interventions
  • Development by various agencies have created gapsby not addressing critical common facilities (maternity clinics, bus stations, market for displaced small businesses, drainage systems ) required to maximise full benefits of Economic Development


flagship interventions39
Flagship Interventions

The Galle bus stand which was damaged by tsunami and neglected thereafter has been restored at a cost of Rs 414.7 Mn with facilities for shopping and rest areas

Model maternity clinics are being promoted with private sector support

With the urban modernisation programs,small traders occupying un authorised areas are being provided with modern facilities for their self employment activities. Two such facilities in Pettah, Nugegoda have been completed at a cost of Rs 41.0 mn


need assessment outcome in consultation of members of parliament 09 08 2011 and 17 08 2011
Need Assessment outcome (in consultation of Members of Parliament-09.08.2011 and 17.08.2011)

Need assessment carried out in consultation with Members of Parliament gave higher priority for unattended roads and irrigation


regional growth initiatives
Regional Growth Initiatives
  • Ruhunu Udanaya
  • Uthuru Wasanthaya
  • Nagenahira Navodaya
  • Sabaragamu Arunalokaya
  • Kandurata Udanaya
  • Wayamba Pubuduwa
  • Rajarata Navodaya
  • Pubudamu Wellassa
  • Batahira Ran Aruna


Ruhunu Udanaya- Interfacing with Line Agencies and Provincial Council to integrate Ruhuna Economy with following
  • Promote Economic Activities revolving around Magampura port city (air port, port ) Develop connectivity between Katunayake – Hambantota corridor to benefit the surrounding Rural Economy
  • Promote resort development for tourism and construction of Galle Port as a Tourism Port
  • Support Tea and Cinnamon cultivation and promote value added industrial activities


ruhunu udanaya contd
Ruhunu Udanaya- contd..
  • Transform Koggala Export Processing Zone to an Industrial Township
  • Assist Ruhuna University to drive Knowledge Based Economic Activities with emphasis on Medicine/Engineering
  • Develop International sports facilities


ruhunu udanaya selected outcomes
Ruhunu Udanaya – selected outcomes

Carpeting of Mamandala- Malpettawa Road

Palatuwa Gunarathana Vidyalaya



Demining Activities in North & East

Status as at 30 June 2011

Totally Cleared Area 1,571 SqKm

To be cleared 443 SqKm



Demining Activities in North & East

Area Cleared

Expenditure in 2009/2010


Uthuru Wasanthaya-Activity PlanInterfacing with Line Agencies and Provincial Council to integrate Northern Economy with following
  • De-mining program
  • Resettlement and Livelihood development
  • Restoring public service delivery – Health Education Rehabilitation and Skills Development Civil administration and Judicial services
  • Strengthening the community – Local Government Services Co-operatives Religious places Samurdhi
  • Restoration of Banking , Financial Institutions and Trade and Commerce


uthuru wasanthaya contd
Uthuru Wasanthaya- contd..
  • Rehabilitation of Rural and Provincial infrastructure – Electricity Irrigation Roads Community Water Supply
  • Reconstruction of Highways Railways Ports Fishery harbours Major irrigation Water supply and Drainage systems Common facilities and Townships National schools Hospitals Universities
  • Investment promotion to attract Private Investment in Agriculture Manufacturing Tourism and services


uthuru wasanthaya selected outcomes
Uthuru Wasanthaya – Selected outcomes


Reconstructed Adampan MMV

Reconstructed Houses

  • Giant’s tank rehabilitated at a cost of Rs 289.5 Mn to provide water for 9890 Hectares of cultivation
  • 09 Irrigation schemes including Iranamadu are being rehabilitated

Giant’s tank - Mannar


uthuru wasanthaya contd52
Uthuru Wasanthaya- contd.
  • National- A- 9 , A 32 HighwaysJaffna Teaching Hospital Jaffna water supply Yoda wewa, IranamaduVocational Training Railway KKS harbourPalali Airport StadiumJaffna University


Nagenahira Navodaya-Activity Plan Interfacing with Line Agencies and Provincial Council to integrate Eastern Economy with following
  • Restoration of housing for resettlement
  • Strengthening Social infrastructure
  • Restoration of Economic infrastructure- Electricity Railways Roads Water supply and Sanitation Major irrigation and Flood protection
  • Reconstruction of bridges to re establish connectivity


nagenahira navodaya contd
Nagenahira Navodaya- contd..
  • Promoting agricultural base for surplus production of Paddy, Maize, Fisheries, Livestock
  • Private sector investment promotion in Storages, Marketing, Processing ( paddy milling), Fruit and Export agriculture zone in Maduru Oya
  • Investment promotion in industries in Cement, Mineral sand and Industrial zones
  • Promoting Tourist resorts , Beaches, Wild life and Bird sanctuaries



Nagenahira Navodaya -selected outcomes

Renovation of Anchorage Trincomalee

Renovation of Mayadunna Vidyalaya- Ampara

Re construction of Irakkandy Bridge

Fish Market - Baticaloa


Sabaragamu Arunalokaya –Interfacing with Line Agencies and Provincial Council to integrate Sabaragamuwa Economy with following
  • Improvement of National and Provincial roads
  • Construction of Urban water supply schemes
  • Rehabilitation of Chandrika Wewa
  • Horticultural centers in Kuruwita, Ratnapura and Kegalle


sabaragamu arunalokaya contd
Sabaragamu Arunalokaya – contd..
  • Replant and cultivate Plantation Crops
  • Develop Ratnapura as a Gem cutting and processing center
  • Promote Echo Tourism and Leisure activities, centered around Pinnawala Zoological Garden and Elephant Orphanage
  • Develop Sabaragamuwa University and use as a resource center for regional development


sabaragamu arunalokaya selected outcomes
Sabaragamu Arunalokaya- Selected outcomes

Elephant Orphanage - Pinnawala

Animal Reproductive Center- Imbulpe

Reconstruction of Galbokka Tank- Embilipitiya

Carpeting Gange yaya- Kolonna Road


Wayamba Pubuduwa –Interfacing with Line Agencies and Provincial Council to integrate Wayamba Economy with following
  • Rehabilitation and expansion of Provincial and National Road network
  • Diversion of Deduru Oya and Expansion of Irrigation Facilities- Deduru Oya (to feed 200 small tanks and supply water for 30,000 hectares of new land for cultivation)
  • Development of Kalpitiya Tourist Resort andWilpattu National Park to develop Tourism


wayamba pubuduwa contd
Wayamba Pubuduwa- contd..
  • Securing and restoration of Cultural and Archeological sites (Dambadeniya, Paduwasnuwara ,Yapahuwa and Thonigala)
  • Development of Paddy, Coconut, Fruits and Vegetable cultivation and Inland fisheries and Aquatic resources
  • Project Wayamba University as a resource center for Agriculture ,Food technology and Business management


wayamba pubuduwa selected outcomes
Wayamba Pubuduwa – selected outcomes

Carpeting Mawathagama- Lihiniyagala Road

Rehabilitation of Pathragala Tank


Rajarata Navodaya –Interfacing with Line Agencies and Provincial Council to integrate Rajarata Economy with following
  • Rehabilitation of all major irrigation systems and down stream facilities
  • Transform the un irrigated part of Rajarata through Moragahakanda Irrigation Project to provide water to Weli Oya and Madawachchiya


rajarata navodaya contd
Rajarata Navodaya – contd..
  • Establish Road and Railway connectivity to Anuradapura to make it a hub city
  • Develop Anuradapura sacred city and preserve archeological sites
  • Promote paddy, maize, fruits, vegetables, inland fisheries and food processing facilities
  • Rajarata University to become a resource center


rajarata navodaya selected outcomes
Rajarata Navodaya- Selected outcomes

Rehabilitation of Alaadioodaya Canal

Rehabilitation of Poodoor Anicut - Thamankaduwa

50 ft long Bridge in Divulwewa

Pre school - Dimbulagala


Kandurata Udanaya –Interfacing with Line Agencies and Provincial Council to integrate Kandurata Economy with following
  • Promote Kandy sacred city
  • Develop Nuwara Eliya , Kandy and Dambulla as Tourism cities
  • Develop Botanical Garden network
  • Peradeniya University township
  • Conservation of Hydro electricity resources in the province


kandurata udanaya selected outcomes
Kandurata Udanaya – Selected outcomes

Tourist Attractions

Wewalawewa Elevated Irrigation


Pubudamu Wellassa -Interfacing with Line Agencies and Provincial Council to integrate Wellassa Economy with following
  • Diversion of Uma Oya
  • Uva Wellassa University township
  • Development of Tea, Rubber, Paddy and Vegetable plantation
  • Connect the land locked province to South and East


pubudamu wellassa selected outcomes
Pubudamu Wellassa – Selected outcomes

Eladaluwa- Mudunpita Road

Moretota- Katugaha Road


Batahira Ran Aruna –Interfacing with Line Agencies and Provincial council to integrate Western Economy with following
  • Develop Floriculture Zones and Tropical fruit Zones
  • Promote Small holder Agriculture and develop Coconut plantation and Fisheries industry
  • Introduce under-passes and by-passes toremove city congestion and facelift urban townships
  • Develop Dutch Canal and associated area as a Recreation and Tourism Belt


batahira ran aruna contd
Batahira Ran Aruna – contd..
  • Develop Emerging Economic activities associated with Air port, Express way, Outer Circular Highway, Southern Expressway and Associated townships (Kerawalapitiya, Peliyagoda, Kadawatha, Kaduwela and Kottawa etc) and The Port City and Colombo
  • Develop ancillary facilities around Fish market and Vegetable market in Peliyagoda
  • Transform Export Processing Zones in Katunayake, Biyagama, Wathupitiwela, Malwatta and Horana into new townships and ease the road congestion
  • Promote Knowledge Economic Centers linking to National Universities located in the province


batahira ran aruna selected outcomes
Batahira Ran Aruna -Selected outcomes

Construction of MOH building- Weliweriya

Construction of Low Level Road- Kolonnawa


development of recreation and leisure facilities
Development of Recreation and Leisure Facilities
  • Corporate strategy for Department of Zoological Garden (approved by cabinet on 28.09.2010)
  • Establishment of a safari park in a 500 acre land at Ridiyagama
  • Setting up of a new Zoological garden in Kegalle
  • Modernisation of Dehiwela Zoological Garden to provide breeding centers , better waste disposal system and improve internal access roads and staff quarters.
  • Encourage industries to supply local products for shopping, restaurants and entertainment to popularise zoological facilities among both local and foreign tourists
  • Upgrade and maintain sorrounding infrastructure



Department of National Zoological Gardens- New development initiatives

  • Safari Park - Hambantota

Construction of Animal Hospital

  • Improvements of Dehiwela Zoo

Improving access roads including for differently abled visitors

  • Developments in Elephant Orphanage -Pinnawala

Construction of Feeding hut



Dehiwala zoo

Renovations to Butterfly park

Sheds in Elephant free living enclosure


stores and supplies building

Internal Access Road


development of recreation and leisure facilities83
Development of Recreation and Leisure Facilities
  • Corporate strategy for Botanical Gardens
  • Improvement of common facilities (toilets , reception center, restaurants, shopping , access roads and staff quarters) of the existing Botanical Gardens at Peradeniya, Gampaha, Hakgala, Ganewatta etc
  • Development of new Botanical Gardens in Hambantota and Avissawella
  • Promote horticulture zones , flower shops and household and micro cultivation for exports
  • Create small urban Botanical Gardens/ forestries in selected government lands to add environment value to emerging cities



New Botanic Gardens in Avissawella and Hambantota

Water Garden, Avissawella

Cactus Collection, Hambantota


Orchid collection, Hambantota

Great Lawn, Avissawella

tourism economy
Tourism Economy
  • Reforms –
  • Setting up a single authority for promotion and regulation of tourism in place of prevailing multiplicity of organisations
  • Tourism promotions to be collectively undertaken by Tourism Development Authority, BOI, Tea Board, EDB, Sri Lankan Air Line and Private sector
  • TDA promotional offices to be attached to Sri Lankan missions abroad and linked to Sri Lankan Air Line country offices.


tourism economy key initiatives
Tourism Economy-Key Initiatives
  • Promotion and Development–Development of language skills in Chinese, Japanese and Russian EtcVocational Skills development for tourism trade One stop approval processSimplified land alienation on leases and based on up front paymentsPromotion of Home-stay tourismRefurbish old heritage homes & walauwas to accommodate elite high spending tourists Promotion of lesser known local tourist destinationsUpgrading of common facilities in tourist stopovers (toilets, rest areas, shopping)

Sponsorship of coffee table books , specialised events and preparation of tourist s’ guides and hand books etc.Attraction of Internationally renowned Hotel ChainsIntegrate with diversified economic activities to increase backward integration (harvesting, crafting, fishing, cultural and religious activities)Promotion of museums, temples, churches , heritage sites.

  • Regulations –Minimum rate for 5 star hotelsStrict enforcement of standards



Several new projects are gradually adding to promote Sri Lankan Tourism products

Malu Malu Resort Passikuddah-

60 Room Luxury Boutique Hotel

July 2010 Foundation

Laying Ceremony

May 2011 Opening


tourism zones
Tourism Zones








Hill Country










developing tourism corridors through private investments
Developing Tourism Corridors through private investments
  • Passikudah
  • Kalpitiya
  • Kuchchuveli
  • Negombo
  • Yala
  • Kandy- Dambulla- Nuwara Eliya
  • Anuradapura
  • Bentota - Hikkaduwa


new markets
New markets
  • India
  • China
  • Japan
  • South Korea
  • Russia
  • Australia ( far east) – Colombo- Middle East
  • Europe linked markets- London,Paris, Frankfurt, Zurich and linked to North American markets
  • Networking and market penetration through Sri Lankan Air Lines / Mihin Lanka fleet expansion to 20 air crafts by 2011 and 30 air crafts by 2013 and facilitate other international air lines to promote Sri lanka as a destination.
  • Direct flights to India, Japan, China, Russia, Europe, Middle East, Philippines, Indonesia and Bangladesh

Developed and Emerging Economies in Asia will be the key targeted markets.(Per capita income and upper income families in these Economies are on the rise)


market focus b iased towards high spending tourists
Market Focus- Biased towards high spending Tourists
  • Sri Lankan Tourists- 5 Mn
  • Indian - 300,000
  • Chinese- 150,000
  • Japanese- 50,000
  • Russian – 100,000
  • Korean - 50,000
  • Australian – 100,000
  • Middle Eastern- 100,000
  • European - 200,000
  • Transit – 500,000


activity focus
Activity Focus
  • Wild-life and environment– 100,000
  • Sports - 200,000
  • Culture - 300,000
  • Beaches – 300,000
  • Business - 50,000
  • Knowledge activities - 100,000(conventions/seminars and conferences)



Annual Room Occupancy Rate


Receipts from Tourists (Rs Mn)


investment strategy emerging economy with wider boundaries
Investment strategy- Emerging Economy with Wider Boundaries
  • To raise investment to 33-35 percent of GDP by 2015 to accelerate and sustain economic growth in excess of 8 percent
  • The composition of total investments to be as follows:


planned investment strategy
Planned Investment strategy
  • Promotion of investments for
    • Basic industries – Cement (USD 450 Mn), Tyre (USD 75Mn), Steel (USD 75Mn) , Textiles (USD 100 Mn) , Pharmaceutical (USD 200 Mn) , Agriculture (USD 50Mn) , Dairy and milk food (USD 500 Mn) to replace imports Total import of these items is USD 1500 Mn

ii. Tourism (USD 2500 Mn) , IT/BPO (USD 100 Mn) , Branded garments and Logistic hubs (USD 200 Mn ) and Gems (USD 50 Mn) Potential additional foreign exchange earning over next 3-5 years is around USD 4,000 Mn


planned investment strategy contd
Planned Investment strategy contd..
  • Promotion of investments for

iii. Exports of value added Tea (USD 100 Mn), Rubber (USD 100 Mn), Cinnamon and spices (USD 100 Mn) and Handlooms (USD 50 Mn) Export earning potential is around USD 2,000 Mn and employment potential is huge

iv. The development of emerging regions under the regional development initiatives (promote domestic investment)

v. Commercial infrastructure Port terminals (USD 1000 Mn), Renewable energy and Power generation (USD 1000 Mn), Waste disposal (USD 500 Mn),Industrial zones / IT parks (USD 200 Mn) Etc

vi. Urban Property development (USD 500-750 Mn)


incentives for investment
Incentives for Investment
  • Applicable concessions –
    • 3 year tax holiday commencing from the date of commercial operation for investments within Rs 50 – 300 Mn
    • 5-7 year tax holiday commencing from the date of commercial operation for investments over USD 3 Mn
    • Up to 25 year tax holiday for strategic investments
    • Deferment of VAT and exemption of custom duty, PAL during project implementation period to reduce up front cost on capital
    • BOI Law to provide Exchange control and Visa concessions for FDIs
    • Simplified Import and Export control system under Import control Gazette of September 2011


barriers to investments
Barriers to Investments
  • Non compliance by line agencies to investment decisions
  • Time consuming approval process (from Cabinet to pardesheeya sabhas and other involved agencies)
  • Indecisive decision making process involved in business disputes/frustrations at Customs, Tax Dept., Exchange control, Import control
  • No proper follow up by officials in institutions (BOI,UDA, TDA )
  • Absence of accepted pricing formula and guaranteed procurement arrangement which create uncertainties


strategic development projects
Strategic Development Projects
  • Under Implementation :Shangri-La Hotel Lanka (Pvt) Ltd. – Colombo - Project - 283Mn 10 acre Land - USD 125 Mn Shangri-La Investment Lanka (Pvt) Ltd – Hambantota- USD 120 MnPetroleum Exploration- Cairn Lanka (Pvt) Ltd. – Mannar – USD 125 MnExpansion of Ceylon Steel Corporation (CHICO) – Athurugiriya- USD 70 Mn
  • Pipe Line Projects : Almost ready to kick-off Mixed Development Project (CATIC/AVIC) – Colombo- USD 450 MnColombo South Container Terminal – USD 500 Mn2X250 MW Coal Power Plant – Trincomalee –USD 500 MnMagampura Port City Investment projects –USD 600Mn (Sugar refinery, fertiliser and chemicals ,cement and vehicle assembly)


outcome expected 2015
Outcome Expected - 2015
  • Emerging Middle Income Economy status with USD 5000 Economy
  • Self Reliant Household Economy
  • Empowered Villages & Poverty free Sri Lanka
  • Position the Country to enter the 3rd phase of Mahinda Chintana in 2016

Phase I – 2006 - 2010 USD 1000 2400 Phase II – 2011- 2015 USD 2700 5000Phase III - 2016 - 2020 USD 5000 7500/ 10,000


outcome expected 2015107
Outcome expected -2015

Empowered Villages and Poverty Free Sri Lanka

Self Reliant Household Economy

Position the Country to enter the 3rd phase of Mahinda Chintana

Emerging Middle Income Economy status with USD 5000 Economy


proposals to be considered
Proposals to be considered
  • Divineguma to take to the 3rd Phase for value added activities
  • Rationalise wide range of Samurdhi allowances and promote micro credit through Samurdhi Banking societies to empower Divineguma and self reliant households
  • Gamaneguma to target 20,000 small villages to fill gaps in road access, drinking water, irrigation etc
  • Strategise a marketing campaign for new Sri Lanka that promotes Exports , Tourism and Investment
  • Promote 20 Apparel / Handloom factories in emerging districts
  • Pursue FDI through already established foreign investors


reforms in the ministry
Reforms In the Ministry


Divineguma Integrated Rural Development Department with three divisional offices in South, Central and North


  • Samurdhi Authority of Sri Lanka
  • Department of Commissioner General of Samurdhi
  • Department of Up- Country Peasantry Rehabilitation
  • Southern Development Authority
  • Uda Rata Development Authority
  • Department of National Zoological Garden
  • Department of National Botanical Garden
  • Sri Lanka Tourism Promotion Bureau
  • Sri Lanka Tourism Development Authority
  • Sri Lanka Convention Bureau
  • Sri Lanka Institute of Tourism & Hotel Management
  • Board of Investment of Sri Lanka (BOI)- with full time DG

Sri Lanka Tourism Authority (SLTA)