BizPAct Process

Develop Concept

Any businessman or entrepreneur is able to develop and submit a business concept through BizPAct – Investment in Sri Lanka at any time. Concepts must be presented in a standard template (Biz 01). The Concept Paper Template can be downloaded from the BizPAct website, or it is available in hardcopy and soft copy from any District Chamber of Commerce.

Concept Paper Templates should be completed in full in English, Sinhala or Tamil. Guidance on completing the Concept Paper can be provided by the District Chamber of Commerce or the BizPAct project team. Alternatively, if a greater degree of support is required, both these sources can provide details of specialist service providers who can assist in developing the concept. Any such providers are liable to charge for their services. The BizPAct website also has a range of market research and analysis which can support the development of concepts. Once the Concept Paper is complete, it can be submitted by E-mail (this is the preferred method as it facilitates the development of the Investment Proposal), faxed, posted or handed in hard-copy to the District Chamber or the BizPAct project office.

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Concept Verification

Once the Concept Paper Template is received, it will be checked to ensure that all relevant sections of the template have been completed. (In the event that any part of the template is incomplete, illegible, or otherwise unable to proceed to the next stage of the process, the originator will be contacted by a member of the BizPAct project team who will explain what action is necessary to satisfactorily complete the Concept Paper.)

BizPAct needs to provide investors with confidence that the proposals come from entrepreneurs with ongoing successful businesses and individuals of good standing in the community. Entrepreneurs need to provide two pieces of evidence for this.

Firstly, they need to complete the Certificate of Chamber Membership (Biz 02). This should be completed by the entrepreneur and an authorized signature and the official stamp of the chamber should be added.

Secondly, entrepreneurs also need to obtain a Bank Reference (Biz 02). They should fill out their details, take it to their bank and get is signed and stamped by a senior bank official.

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Concept Evaluation - Part 1

Once the Concept Paper has been verified, it will be forwarded to the BizPAct project team, who will evaluate it based on set criteria. These criteria are listed in Biz 03. The purpose of this evaluation is to provide a final filter for all concepts, ensuring they are appropriate and fit-for-purpose to meet the expectations of investors who have been identified through the BizPAct – Investment in Sri Lanka initiative. Should any Concept Paper fail to meet the concept evaluation criteria, the originator will be contacted directly by a member of the BizPAct project team, and told the reasons that the concept did not meet the criteria. This will also be sent out in writing. All Concept Papers which satisfy the evaluation criteria will be recommended to the Enterprise Steering Committee.

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Concept Evaluation - Part 2

The Enterprise Steering Committee is an independent body of specialists and experts drawn from a range of backgrounds. This includes:

• Representatives from the development sector
• Representatives from Government
• Specialists in investment & export
• Specialists in the field of conflict transformation
• Specialists in financial and legal matters
• Members of the BPA Board, representing District Chambers

The Enterprise Steering Committee will review the summaries of all Concept Papers (, and the recommendations of the BizPAct project team. In some instances, they may require to see the complete Concept Paper. The Committee are a wholly objective and unbiased group, whose duty is to ensure integrity of process, and to assess the attractiveness of the investment opportunity, drawing on their experience and expertise. They have no vested interest, and, as independents, have signed a Confidentiality Agreement with BPA protecting the intellectual property rights of the concept originator (see Biz 06). The Committee will be guided by the results of the verification and evaluation, though they act as impartial assessors whose endorsement is required before the concept can be promoted to investors. The Committee will review the concepts against the same criteria as the evaluation (see Biz 03), and will either choose to endorse the concept or recommend it for revision. The Concept Paper originator will be notified either that the concept is to be promoted, or that it is to be declined – in which case the reasons for not taking it forward will be laid out in writing.

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Investment Proposal Development

The BizPAct team will work with approved Concept Papers in order to convert these into Business Investment Proposal documents. The Business Investment Proposal Document will form the basis for promoting the proposal through the BizPAct website and through other channels. The BizPAct team may need to seek additional information from the entrepreneur in order to complete the Business Investment Proposal document. However, it is anticipated that in most cases the Business Investment Proposal will be a re-organization of the material in the Concept Paper.

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Concept Promotion

Endorsement by the Enterprise Steering Committee allows the concept to be promoted to investors through the BizPAct – Investment in Sri Lanka initiative. However, there are two practical considerations to be fulfilled before the concept will be promoted:

Creation of a Business Plan

In some cases, the originator may already have prepared a full business plan, detailing the nature of the investment, the background, context, financial assumptions, human resources and risks associated with the investment. In other cases, the originator may only have completed the Concept Paper which broadly outlines these considerations. It is highly likely that an investor will want to see a more detailed plan specifying the nature and application of the investment, and for this reason BizPAct – Investment in Sri Lanka encourages full business plans to be created before the concept is promoted. BizPAct – Investment in Sri Lanka can advise on professional expertise to assist in the development of a business plan, though the cost of such assistance will be borne by the originator. The BizPAct project team can also provide guidance as to the presentation of the business plan, though – as the nature of the investment may vary considerably – no standard template is stipulated.

Signing of a Memorandum of Understanding

The BizPAct project team will issue a Memorandum of Understanding to be signed between BizPAct – Investment in Sri Lanka and the Concept Paper originator. (This MoU is laid out in Biz 07). The primary objects of the MoU are to establish an understanding that:

• The BizPAct project team acts as an honest broker between the concept originator and the investor, but is in no way contractually obligated nor liable in law to the conditions, execution or otherwise of the investment agreed between originator and investor
• The relevant District Chamber of Commerce should be engaged as part of the implementation of the concept
• BizPAct – Investment in Sri Lanka may apply a brokerage fee, being a commission on successful investments, to recoup the direct costs of its operation (the Commission Framework is provided in Biz 08)
• BizPAct – Investment in Sri Lanka reserves the right to monitor the investment through time, and to conduct an evaluation at the end of the investment period, in order to improve its services
• BizPAct – Investment in Sri Lanka reserves the right to use any aspect of the investment as a case study for learning and/or promotional purposes

Following development of the Business Plan, and signing of the MoU, a summary of the concept will be loaded on the BizPAct website. A link will also be provided, leading through to a secure section of the website for registered investors. Simultaneously, an e-mail alert will be generated and sent to ‘investor focal points’ – being willing representatives from Sri Lankan communities outside the country who have agreed to promote investment opportunities within their communities. Investment opportunities will remain on the website, and be periodically promoted collectively thereafter, until an investor is found.

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Expression of Interest

Investors may express interest in a concept either through the BizPAct project team, the District Chamber of Commerce, or directly to the originator. The BizPAct project team, in its capacity as an honest broker, will seek to facilitate a match between concept originator and investor, but will not be the primary agent in this regard, nor enter into any contractual undertaking on behalf of, nor represent, either party.

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Agree Investment

The BizPAct project team are able to reference out to known legal, commercial or financial professionals to bring about an understanding that may lead to investment. They may also reference the investor to agents within Sri Lanka who can oversee the investment on their behalf. BizPAct – Investment in Sri Lanka cannot guarantee that an investment may result from any expression of interest, nor that such an investment, if agreed by both parties, will prove mutually beneficial. Similar BizPAct – Investment in Sri Lanka will not underwrite any venture. On completion of any contract, agreement, accord, or otherwise between concept originator and investor which leads to the transfer of funds, BizPAct – Investment in Sri Lanka may invoice the concept originator in line with the Commission Framework detailed in Biz 08.

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