About of the Sri lanka Electrical and Electronic Engineering field

 Sri Lanka's Electronics and Electrical industry revolves around production of a range of electronic products, components and sub-assemblies targeted towards global export markets. These high tech products include:
 Noise suppression capacitors and Noise suppression coils
 Machined component assembly
 Seat belt sensors, Wire harness and Airbag sensors
 Coil Windings on Non- Uniform bobbins
 Power suppliers and Inductors
 Cable harnessing
 Transformers
 Surface mounted Printed Circuit Boards
 Electrical Panel Boards including LV Switch Boards & Modular Enclosures
 Automotive Harnessing
 Electrical Switches and sockets
 Seat Belt Safety Sensor Harness for automobiles
 Data Communication and Telecommunication cables
 Electrical Power cables, Antenna cables, and Enameled Winding Wires
 Industrial plugs, machined mechanical components
 LV Switch Boards & Modular Enclosures
 Bio-medical engineering products
 Enterprise mobile terminals
 Electronic payment devices
 Accessories for handheld devices
 Electronic signage, magnetic heads
 Ferrite cores Industrial plugs, machined mechanical components
 LV Switch Boards & Modular Enclosures
 Bio-medical engineering products
 Enterprise mobile terminals
 Electronic payment devices
 Accessories for handheld devices
 Electronic signage, magnetic heads
 Ferrite cores
 Fiber optic related products
 Memory modules
 Toroidal coils
 Thermal outfits
 Household appliances
 Energy saving lamps
Nowadays, Sri Lanka has drawn focus for following areas also EMS (electronic manufacturing service)  Test development  Production design/ improvements  IOT  IC design  Component manufacturing with available natural resources (eg. battery with Sri Lankan graphite)  Product repairing  Field service  ERP work  Drawings, data handlingOne of the most vibrant countries in South Asia with a fast growing economy offering opportunities across the value chain, backed by sound economic fundamentals and favorable future prospectsHigh growth rate over past 5 years ( 6%)
• Strategically located within the East-West shipping lane network
• Keen Government focus on expanding the export basket with innovative valued added products
• Sri Lanka boasts of an age old traditional agricultural base.Electronics and Electrical SectorSri Lanka has been a geo-strategic hot spot due to its geographical positioning 6 degrees North and 79 degrees East at the center of the maritime silk route. Favourable maritime geographical factors, emerged Sri Lanka as a regional trading hub, a strategic link in the global supply chain. The Liner Shipping Connectivity Index (2016), which measures how well countries are connected to global shipping networks, scores Sri Lanka at 53, above Vietnam at 47 and Thailand at 45Deepest and the most efficient port in South Asia
 Present container throughput 8 Mn TEUs/ annum
 Inbuilt infrastructure to handle 20 Mn. TEUs/ Annum
 Experience in handling transhipment cargo
 Ability to handle largest container vessels
 Lead time of clearance is only one day
 33 Major Shipping Lines in operation
 The fastest growth rate among container ports
 worldwide (Sri Lanka - 15.6%, Singapore - 11.2%, Guangzhou - 8.6%)
- Alphaliner Ranking 2018
 13th best connectivity port in the world in 2017
- Drewry port connectivity index 2017We are building on the plan to expand Sri Lanka, to make
it into a centre for shipping, for aviation, for
communications, a logistic hub and a business hub”• 35% Domestic Value Addition (If the exporter imports at least)
• 10% of the contracting country (India), the domestic value addition will be 25%
• HS Code Transformation at 4-digit level between raw materials and finished product
• Substantial Production Process (Not allow labeling, packaging etc)
Pakistan - Sri Lanka FTA (PSFTA)
• 35% Domestic Value Addition (If the exporter imports at least)
• 10% of the contracting country, the domestic value addition will be 25%
• HS Code Transformation at 6 digit level between raw materials and finished product
• Substantial Production Process (Not allow labeling, packaging etc)Duty Free Market access to 28 EU member countries through EU GSP plus Scheme (Products under HS Chapter 84, 85 and 90 and need to cover the rules of Origin)
European Union
GSP+ 100% Duty Free Access
China
China-Sri Lanka FTA FTA Under negotiation
Pakistan
Pakistan-Sri Lanka FTA 100% Duty Free Access
Singapore
Singapore-Sri Lanka FTA 100% Duty Free Access to all items
India
Indo-Sri Lanka FTA 100% Duty Free Access
Sri Lanka
USA
GSP 100% Duty Free AccessExemption under Board of Investment of Sri Lanka (BOI)
 Exemption of Customs Duty on importation of capital goods during the project implementation period
 Exemption of Ports & Airport Development Levy on capital items for export-oriented manufacturing companies with an investment of over USD 200 million during project implementation period,
 Exemption from Custom duty, PAL, NBT for raw materials for export oriented projects (minimum investment USD 500,000)
 VAT deferment facility for raw materials for export oriented projectsTax concession under Inland Revenue Department Act
 Reduced Corporate Income Tax Rate of 14% for projects predominantly” engaged in export manufacturing
 Accelerated Capital Allowance on Depreciable Assets in addition to normal depreciation
V1
“predominantly” means 80% or more calculated based on gross incomea) Class 1 : computers and data handling equipment together with peripheral devices and
(b) Depreciable assets (other than intangible assets) comprising plant or machinery that are used to improve business Classification of Depreciable Assets
Class 1 : computers and data handling equipment together with peripheral devices
Class 2 : buses and minibuses, goods vehicles; construction and earthmoving equipment, heavy general purpose or specialised trucks, trailers and trailer-mounted containers; plant and machinery used in manufacturing.
Class 3 : railroad cars, locomotives, and equipment; vessels, barges, tugs, and similar water transportation equipment; aircraft; specialised
public utility plant, equipment, and machinery; office furniture, fixtures, and equipment; any depreciable asset not included in another class. Class 4 : buildings, structures and similar works of a permanent nature Class 5 : intangible assets, excluding goodwill - applicable only for normal depreciation
Location Expenses incurred on Depreciable ^2 Assets Enhanced Capital Allowance Extended Period for Deducting Unrelieved Losses Exemption from Dividends tax & Exemption of employment income from WHT Northern Province > US$ 3 Mn and < = US$ 1,000 Mn 200% 10 X > US$ 1000 Mn 200% 25 P Other than > US$ 3 Mn and < = US$ 100 Mn 100% 10 X Northern Province > US$ 100 Mn and < = US$ 1,000 Mn 150% 10 X > US$ 1000 Mn 150% 25 P
Other than intangible assets (Class 5)
Location Expenses incurred on V3 Depreciable Assets Enhanced Capital Allowance Northern Province Up to US$ 3 Mn 200% Other than Northern Province Up to US$ 3 Mn 100%
Investment IncentivesOut of the total land area of 261 Acres in MEPZ industrial area is about 131 Acres. Block B is vacant for new industries and Currently, there are 09 Nos industries operating in MEPZ employing 1,282 Males & 2,247 FemalesBingiriya and Mawathagama of Kurunegala District, North Western Province, have been chosen as the most versatile locations for the Next Zone Development by the Board of Investment of Sri Lanka.
Mawathagama Zone
• 1km away from main highway Katugastota- Puttalam (A10 Road) and 14 Km from main highway Ambepussa- Trincomalee (A6 Road)
• Better connectivity to capital of Colombo through the proposed Central Express Way (14 Km from Mawathagama to Proposed Interchange at Kurunegala)Sri Lankan Electrical and Electronics industry is progressively stepping into the Global Electronics Value Added Supply Chain with products and services gaining acceptance amongst the most important Global Market Leaders.
• The Electrical and Electronics industry in Sri Lanka grew significantly over the past 45 years and saw it being gradually elevated to the position a key manufacturing industry contributing towards export-oriented economic growth.
• Having started as a basic assembler of Consumer Electronics and products in early 1970s, Sri Lanka shifted towards Electronic Components and Assemblies in post 1977s. In 2017, the industry's contribution to the total export revenue was US $371.48 million.Total Foreign Ownership is allowed
- No restrictions on repatriation of earnings
- Safety of Foreign Investments Guaranteed by the Constitution
- Strong Intellectual Property laws in line with WIPO regulations
- Signatory to the Multilateral Investment Guarantee Agency (MIGA) of the World Bank
- Investment Protection Agreement and Double Taxation Relief Agreement with over 40 countries
Colombo Port ranked 22nd position in world container ports, in 2016
- Alphaliner Rankings.
Sri Lanka’s ranking in South Asia for Electricity and Telephony Infrastructure in the
Global Competitiveness index 2017-18
“Colombo is the only port in the Bay of Bengal that approaches global standards in terms
of operation efficiency and throughput"
- Asian Development Bank Institute - 2016
“Moving within the city (Colombo) is much easier and cheaper than Cairo, Dhaka, Manila and Mumbai”
- A.T. Kearney
Sri Lanka is the first country in South Asia to introduce next generation telecom networks (4G)
World’s lowest entry level broadband pricesSri Lanka ranked the highest in Network Readiness among SAARC countries - 2016
Sri Lanka is the most efficient in South Asia in the Trading Across Border rankings – 2017Great Place to Work & Live
• World-class International Schools
• Prestigious Hotels / Leisure Facilities
• Modern Office Complexes
• Luxury Residential Apartments
• Health Care up to International Standards
• Finance and Banking
• Clean Air
ColomboCSS Lanka (Pvt) Ltd  Founded in 1988  Employment Strength - 950  Address :Kurunduwattte Ln, Negombo
 Head Quarters in Switzerland  The Group has subsidiaries in Austria, China, Hong Kong, Germany, Slovakia, Sri Lanka and SwitzerlandVariosystems (Pvt) Ltd - Badalgama
 Founded in 1993 in Switzerland
 In 1998 Variosystems started operations in Sri Lanka as a joint venture
 Employment Strength - 1050
 Sell a complete range of contract manufacturing products including surface mount and through-hole assemblies, press-fit backplanes, turnkey box builds,
and cable assemblies
 Operate production facilities in Switzerland, United States, Sri Lanka and ChinaTOS Lanka Pvt. Ltd - Biyagama Export Processing Zones
•Founded in 1995
•Section 17, 100% Japanese owned Enterprise under Board of Investment of Sri Lanka
•Owned by Tosslec. Ltd. Kyoto, Japan
•Employment Strength - 300
•Annual Group Turnover - US$ 50 Million
•More than 20 years of commercial operation
•Focal Activity is Surface mounting of printed circuit boards for medical, industrial, automotive and ICT electronics
• specialized in automotive safety sensor harness assemblies for Toyota and other major automotive end users.