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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.
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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.

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

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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

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