FDI up 51% to $ 817 m; investors to get privilege cards: Minister

Wednesday, 20 August 2014 01:26 - - {{hitsCtrl.values.hits}}

By Waruni Paranagamage The Government yesterday said that Foreign Direct Investments (FDIs) had risen by 51% to $ 817 million by the end of the second quarter from a year earlier, and looks to woo more by issuing privilege cards to investors. Investment Promotion Minister Lakshman Yapa Abeywardana told the media yesterday that post-war Sri Lanka remains attractive for foreign investors judging by the year’s inflows so far. “Based on provisional figures, there has been $ 817 million in FDI in the first two quarters of this year, which is a 51% increase,” the Minister said.

“Within the past 35 years the country has received $ 9.9 billion in FDI of which $ 7.1 billion was achieved within the last eight years,” Abeywarddena told a media conference along with BOI Chairman Lakshaman Jayaweera He also said that Sri Lanka is undergoing rapid infrastructure development and regional areas have been provided with more than 70% of essential infrastructure facilities. The Minister said that the best way of recovering Government expenditure on infrastructure development is by higher FDIs especially into regions or provinces. A plan to incentivise investments with the issuance of privilege cards – Gold, Silver and Bronze (based on the invested amount) along with a host of other benefits, including a green channel at Immigration, was also revealed by the Minister. “We are planning to establish two counters at Mattala and Katunayake airports to support this privilege scheme,” he added. Abeywardana also said that in view of regular complaints, the BOI will set up an investigation unit to give redress to investors as well as the public. To achieve the target of drawing $ 5 billion in FDI by 2016, the Minister said that the BOI will be reorganised, repositioned and rebranded. BOI Executive Director Dr. Nihal Samarakkodi described that under the three strategies, the BOI has recognised that signing investment agreements with other countries is important. Giving fiscal incentives, developing industrial infrastructure and investor facilitation are recognised as internal factors. “In the reorganising process of the BOI, several new departments have been set up along with IT-based facilitation process,” the director said. Under the rebranding the BOI will make the website as a major promotion tool. The redesigned website with investor-friendly options was also launched yesterday. The board will also set up a special BOI counter to handle tax matters. In the process of rebranding, BOI plans to establish regional zones to reduce the unemployment rates of regional areas. Providing online-VISA facilities, improving payment gateway systems, establishing of strong linkages with international agencies, will also be focused on in the rebranding process. The Board’s repositioning will be in line with the country’s slogan “Wonder of Asia” and will also promote tourism and related activities in Sri Lanka, in addition to the country’s five hub strategy.