Express Service — Budget 2004

Two new export-processing zones will spring up next year, as part of the governments plans to spur economic activity.
As Lanka Business Online reported on Tuesday, a second export zone will come up in Keragala, Biyagama in addition to another location in Pannala.rn

rnFinance Minister K N Choksy says, the Board of Investment (BOI) is faced with a shortage of readily available industrial land and property to be offered to prospective investors.rn

rnChoksy estimates the 300-acre Keragala zone to cost Rs. 3 bn to set up. The cost of it will be partly funded by the BOI by disposing properties within the existing zones that are presently being leased to investors.rn

rnThe BOI will leverage on Rs. 1 bn available in cash and assets to raise the funding. rn

rnBOI Chairman Arjunna Mahendran told LBO that the board will tap into the local bond market, to raise up to Rs.2 bn to fund the Keragala zone.rn

rnldblquote We will issue bonds to fund it to a total of Rs.2 bn but we will do it in stages with a fi