July 01, Colombo: Sri Lanka has granted China to establish a Special Economic Zone (SEZ) to attract more Chinese investment for the post-war development in the country.

Sri Lanka's Board of Investment (BOI) signed an agreement with the Chinese conglomerate, Huichen Investment Holdings Ltd. to set up and manage a dedicated Chinese Special Economic Zone at Mirigama.

According to BOI's Deputy Director General A.M.C Kulasekera the Hong Kong-based company will invest $28 million to "establish, develop, and market the new Special Economic Zone” in Mirigama.

"The company will initially invest US$ 28 million, but that is just the first phase of the development,” Kulasekera said.

The BOI said the newly developed SEZ will have standard buildings available to investors for factories. The firm will construct an administrative building, supermarkets, banks and office areas in addition to improving internal roads, water and power capacity.

The BOI expects the close proximity of the Zone to other major cities of Negombo, Divulapitiya and Veyangoda will initiate projects in information technology and business process outsourcing giving more employment opportunities to the young and skilled workers.

China has been a major investor in Sri Lanka supporting several mega projects in the country.