IntroductionKey Sectors For Investment - Utilities
Introduction
Utility sector covers the BOI enterprises established for the development, improvement or enhancement of common facilities to the public.
Power & Energy Sector
The base demand for power in Sri Lanka was 2517 MW in 2010 and is forecasted to increase up to 5306 MW by the 2020.
In view of the growing demand for power, it has been planned to increase the power generation capacity to 3470MW in 2012 and to reach 6367 MW in 2020, respectively.
The Ceylon Electricity Board plans to generate 20% of the Power supply from renewable energy sources by 2020 from 6% at present. For the purpose of bridging this gap, sufficient investment opportunities will be envisaged on development of renewable energy sector through wind, dendro, solar and mini hydro power plants.
Telecommunication Sector
Sri Lanka’s telecom sector has shown a significant growth in recent times. The sector has been one of the leading Foreign Direct Investment (FDI) generator to the economy.
The telecom sector is expected to expand the capability of users for quick adaptation to digital technology, create partnerships with the private sector to improve information and knowledge sharing, up grade the telecommunications services to meet the expectations and requirements of government, business communities international communities & general public and minimize the regional disparity of telecommunication facilities.
Statistical overview of the sector as at end September 2012 is as per below:
| 1 | Number of System Licenses issued | 62 |
| 2 | Total no. of fixed phones | 3,489,898 |
| 3 | Tele density (per 100 inhabitants) | 16.9 |
| 4 | No. of cellular mobile subscribers | 19,636,896 |
| 5 | Mobile subscribers per 100 people | 95.1 |
| 6 | Internet & e-mail subscribers fixed (Provisional) | 398,094 |
| 7 | Internet and E-mail subscribers mobile (Provisional) | 839,928 |
| 8 | Number of Public Payphone Booths | 6997 |
The expansion of the e-governance network, the improvement of access to telecommunication facilities, the establishment of dedicated Economic Zones and Telecommunication Parks and the encouragement of the private sector to set up ICT Institutions and restructuring of mobile telecommunication industry through mergers and acquisitions are among the future strategies to move forward this rapidly growing sector.
Ports Development Sector
The island’s port strategy will centre on six major port: Colombo, Hambantota, Galle, Trincomalee, Kankasanturai and Oluwil. The government has given the highest priority to the development of port infrastructure in recent years. Key port development projects are Colombo South Harbour expansion project, Hambantota Port Development Project, Kankasanturai port development and restoration, Oluvil Port Development Project, and Galle Tourist Port Development.
Colombo South Harbour Development which is considered to be one of the single largest FDI secured for an investment project with an investment of US$ 500Mn (with major investment coming from China) has finalized the BOT agreement with the Sri Lanka Ports Authority for the first terminal. The initial phase of this project is targeted to complete the work of a 600 meters quay length with a capacity handling of 1.2 million tons per annum.