Govt. to offer special incentive package to direct foreign investors

Thursday, 4 May 2023 01:27 - - {{hitsCtrl.values.hits}}

Cabinet Spokesman and Minister Bandula Gunawardena yesterday revealed that the Government is currently in the process of formulating a special package to attract direct foreign investors to the country.

The Minister said the proposal was put forward by President Ranil Wickremesinghe during discussions where it was noted that Sri Lanka has failed to attract direct foreign investments, unlike countries such as Vietnam, India, Oman and China.

“These countries attract a significant number of direct investments annually. But we were left questioning as to why Sri Lanka even with its abundant natural resources and attempts to create a favourable economic situation has failed to attract the same,” he said.

Gunawardena blamed Sri Lanka’s failure to provide ample tax concessions and other benefits offered by other countries for the phenomenon. “Failure to implement certain necessary legislative reforms as well as the political instability and related situations often discourages direct foreign investments,” he said. According to the Minister, the failure on the part of the Government to provide incentives to investors was identified as the main cause for the low direct investments coming in. “Therefore this was discussed during the cabinet meeting and the President proposed that a special package be formulated to attract investors,” he added. Accordingly, Gunawardena said the proposed package will include state finance and other facilities including various concessions in order to draw in investors to Sri Lanka.