FDIs flooding!

• Govt. says $ 700 m offers for investment in first seven months$ 1.5 b projected by December
• Volkswagen plant to be signed this week, renewed interest from other companies
• Fresh proposals to create 10,000 new jobs, insist focus will be on high pay  
• Slams H’tota port, says 400 years needed to repay loans
• Japan in talks to fund second phase of Central highway

By Uditha Jayasinghe

Projected Foreign Direct Investment (FDI) earned by Sri Lanka will hit an estimated $ 1.5 billion by December on the back of a slew of new projects the first of which will be kicked off by Prime Minister Ranil Wickremesinghe this week, the Government said.

Highways and Investment Promotion Deputy Minister Eran Wickramaratne told reporters that Premier Wickremesinghe would sign for a $ 30-million Volkswagen assembly plant on Thursday, the first large-scale investment to get off the ground during the United National Party’s (UNP) short time in power. 

He also insisted that during the period between January and July Sri Lanka had received around $ 700 million in proposals and based on this was confident the Board of Investment (BOI) could close the year having attracted $ 1.5 billion in FDI. Many of the applications are in infrastructure, housing and condominiums, utilities and tourism.  

“We are very confident of increasing investment, which is a dire need for this country. I’m pleased to say that from the time Volkswagen first approached us it took us only one month to obtain all the approvals for this project. This is because there was no secrecy and no need to make any payoffs to corrupt people. If Sri Lanka can show that it is ready to do business then there are many other countries interested in us,” he said.

Wickramaratne noted that popular companies such as Honeywell had approached the Government along with delegations from several other countries including China. The Deputy Minister emphasised that Sri Lanka was ready to do business with all of these stakeholders and was committed to improving the business environment to attract more investment.  

He also focused on the need to attract investment to provide well-paying jobs to youth pointing out once the signed projects are implemented around 10,000 new employment slots would be created.

“Practical problems need practical solutions. Youth do not want charity, they want opportunity. With foreign investment we can provide well-paying jobs to thousands of young people and reduce the brain drain as well as improve technological transfer.”

Responding to questions, Wickramaratne went onto say that the Government was working hard to find a balance between the expensive infrastructure projects initiated by former President Mahinda Rajapaksa and viable projects that would take Sri Lanka’s economy forward.

“At its current rate it will take 400 years for the Hambantota Habour to repay itself. We need projects that make sense and are not driven by corruption. We are in talks to get the central highway’s second phase funded by Japan through the Asian Development Bank (ADB). Other sections may be funded through loans from international markets. But these are viable because we feel such ventures will push the country’s growth.”

The deputy minister also stressed President Sirisena and Prime Minister Wickremesinghe were the best combination for cohabitation for development.