First Singapore-Sri Lanka FDI deal signed 42 years ago
TRINCOMALEE – Sri Lanka had no legislation on foreign investment or an Investment Protection Treaty when the Foreign Direct Investment (FDI) agreement between Singapore and Sri Lanka was signed 42 years ago.
The bold decision to set up a fully self–contained Flour Mill and a distribution operation at China Bay, 42 years ago was taken by Prima founder, the late Cheng Tsang, said the General Manager Prima Group, Tan Beng Chuan at the 40th celebration of Prima held at China Bay, Trincomalee last week.
“We signed the deal in 1977 making it Sri Lanka’s first recorded FDI and the very first from Singapore which was the beginning of a fruitful relationship between the two nations that continues even today,” he said.
He said a Prima Scholarship fund had been set up during the past 30 years for its employee welfare and to mark the 25th anniversary in 2002 of Prima Ceylon (Pvt.) Ltd that had contributed Rs.24.5 million towards the Government’s Rehabilitation and Re-Construction Fund. “I take this opportunity to remember and thank the brave individuals –our employees and partners for ensuring our Trincomalee facility to be operational throughout the 30 years of conflict in Sri Lanka that continued to supply flour to the country with no interruption,” he said.
The Prima flour mill is expected to boost its capacity to mill over 3650 MT of wheat grain per day making it as one of the world’s biggest flour mills contributing to the country’s food security and its economy and thus providing employment opportunities to many. Over the years Prima has worked closely with partners in the baking, food and the leisure industry to enhance their businesses. Prima was the first to introduce specialised biscuit flour to the industry, which is now being used by major local manufacturers and introduced a patented bulk flour delivery mechanism to ensure that the flour is not touched by human hands throughout the process, to reduce contamination. Prima’s current investment amounts to US$240 million. Prima is also involved in the programme to build the children’s section of the Jaffna Library together with the Singaporean Government.
General Manager Prima Ceylon (Pvt.) Ltd, Jhon Seon Ong said that Prima had invested significantly in R&D infrastructure enhancement and product development to enable Sri Lankan businesses to rise to international levels to deliver quality products in baking and in the food industry. In 2004 Prima set up a Baking Training Center (PBTC) to provide knowledge, skills and professional expertise to Sri Lankans to pursue a career in this field and over 5000 graduates have successfully completed their training.” We have made the change from gunny bags to poly bags and paper bags which provide a much higher health and safety standard.”
Meanwhile a 2-million Singapore Dollar (SGD) scholarship fund had been set up by Prima with the Singapore Management University for Sri Lankan undergraduates studying in Singapore. The fund has been further supported by another one million SGD by the Singapore Government to ensure higher education access to deserving Sri Lankans.
Prima Mills is a huge complex located in China Bay overlooking the vast natural harbour. To ensure strict health and hygienic standards everybody who enters the factory premises has to wear head and mouth caps along with thin jackets. The facility was established with an investment of $82 million in 1978 and a further investment amounting to $240 million have been made over the years to increase the mill’s processing capabilities, storage facilities and upgrade production and distribution infrastructure. At present the site’s extended jetty facility can berth 100,000 MT cape –sized bulk carriers and its wheat silos can store 350,00 MT and the facility can mill 3650 MT of wheat grain per day. The mill is equipped with 100 per cent Swiss Buhler state of the art technology with a fully automated production line from “Ship –to- Pack” without human contact to prevent contamination. With rail, road and sea access, the complex is optimised for domestic and global distribution.