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Viewing cable 08COLOMBO850, SRI LANKA VENTURES INTO NANOTECHNOLOGY

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Reference ID Created Released Classification Origin
08COLOMBO850 2008-09-09 10:40 2011-08-25 00:00 UNCLASSIFIED Embassy Colombo
VZCZCXRO8477
RR RUEHBI
DE RUEHLM #0850/01 2531040
ZNR UUUUU ZZH
R 091040Z SEP 08
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC 8644
INFO RUEHNE/AMEMBASSY NEW DELHI 2254
RUEHIL/AMEMBASSY ISLAMABAD 8064
RUEHCG/AMCONSUL CHENNAI 8675
RUEHBI/AMCONSUL MUMBAI 6099
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
UNCLAS SECTION 01 OF 02 COLOMBO 000850 
 
SIPDIS 
 
STATE FOR SCA/INS, SCA/RA, EEB/CBA, and OES/STC 
 
E.O 12958: N/A 
TAGS: ECON EINV ETRD PREL CE
SUBJECT: SRI LANKA VENTURES INTO NANOTECHNOLOGY 
 
1. Summary:  The Sri Lankan business community and the government 
will establish Sri Lanka's first-ever attempt at public-private 
partnership in research and development with the establishment of a 
nanotechnology research and development institute and a 
nanotechnology park.  The venture, which aims to infuse 
nanotechnologies into locally-manufactured export items such as 
rubber products, apparel, and activated carbon, is being led by 
apparel giant MAS Groups Chairman Mahesh Amalean.  Although full 
funding is not yet in place, Amalean and others are convinced that 
the project will help to develop cost-effective new technologies 
that will make Sri Lankan products more competitive in the world 
market.  The government will invite foreign investors to set up 
nanotech companies as part of this new initiative.  End Summary 
 
--------------------------------------------- 
New Public-Private Nanotechnology Initiatives 
--------------------------------------------- 
 
2.  The government and private sector are jointly forming two 
entities that will explore ways to infuse nanotechnology into Sri 
Lanka's local industrial sector.  The first - a Sri Lanka Institute 
of Nanotechnology (SLINTEC) -- is the brainchild of local apparel 
giant Mahesh Amalean, Chairman of MAS Groups, and the National 
Science Foundation.  Numerous CEOs from other top conglomerates, as 
well as the President's Secretary and scientists from the National 
Science Foundation, have committed to the project.  Several Sri 
Lankan expat nano scientists are also closely involved.  SLINTEC 
marks the first time the government and the private sector will 
collaborate on research and development.  Equity for the SLINTEC 
will be 50% public, 50% private. 
 
3.  According to Amalean, who is leading SLINTEC as chairman, the 
entity will initially develop new products and technology that can 
be used by local industries such as apparel, rubber and activated 
carbon.  These are key export industries in Sri Lanka.  There 
appears to be keen interest from these industries for R&D, and 
several top companies in these sectors have already identified R&D 
projects to be carried out by SLINTEC.  Loadstar, the largest solid 
rubber tire manufacturer in the world, wants SLINTEC to develop a 
"nano tube" to mold tires and the rims into one component.  The 
apparel industry desires technology that will reduce die, chemical 
and water usage in manufacturing; the industry also want to develop 
functional "intelligent clothing."  Sri Lanka's leading mobile phone 
operator, Dialog, hopes to do R&D into using solar energy to power 
their base stations as well as research on integrating 
bio-monitoring into wireless communications.  SLINTEC will hold the 
intellectual property rights of products/technology created by the 
group. 
 
4.  The government and private sector are also forming NANCO, which 
will establish and operate a nanotechnology park on a 30 acre site 
approximately 35KM from the capital of Colombo.  Ownership, like 
SLINTEC, will be 50% public, 50% private.  SLINTEC will be 
co-located at the NANCO site once the industrial park becomes 
operational.  (Note:  Until then, it will operate from a popular 
Export Processing Zone near Colombo.  End note.)  NANCO hopes to 
attract companies that want to take advantage of nanotechnologies 
within the park, to ensure that R&D and production maintain in close 
contact.  The government plans to invite foreign investors to set up 
manufacturing plants within the park, likely with the benefit of 
special concessions. 
 
------------------------ 
Possibility of Success? 
------------------------ 
 
5.  While excitement for nanotechnology is building among Colombo's 
business executives, funding has yet to fully materialize.  SLINTEC 
start-up costs are estimated to cost $10 million; NANCO will need an 
investment in the range of $50 million.  Private sector 
contributions for SLINTEC are already in place; however, the 
government contribution has yet to materialize.  Contributions for 
NANCO, other than the government-identified location, are not in 
place.  Amalean is actively seeking assistance to establishing links 
with U.S. nanotech labs and identify additional funding sources. 
 
6.  The National Science Foundation reports that Sri Lanka's key 
advantage in the nano-science field is the availability of several 
Sri Lankan scientists, who are counted among the world's top 
nano-scientists.  The promoters of these projects plan to "make use" 
of these expat Sri Lankans while also recruiting scientists from Sri 
Lankan universities to work at SLINTEC.  However, at this early 
stage, it remains to be seen whether expat experts, some of whom 
have been involved in the initial organization of these two 
entities, will agree in the end to join such ventures. 
 
COLOMBO 00000850  002 OF 002 
 
 
Additionally, as this is Sri Lanka's first attempt at private sector 
collaboration with the government on research and development, 
problems are likely. 
 
7.  Nevertheless, the involvement of very successful private sector 
leaders and a well-trained local scientific community bodes well for 
this project.  Post will monitor developments and report further as 
appropriate. 
 
BLAKE