Govt. justifies Expropriation Bill as good for investment

Friday, 4 November 2011 03:00 - - {{hitsCtrl.values.hits}}

Keheliya denies that FDI will be affected, wants it passed before Budget

By Uditha Jayasinghe

The Government yesterday made an attempt to justify the controversial Expropriation Bill on the grounds that it was to strengthen underperforming enterprises.

Speaking to the media at the Cabinet press briefing, Media Minister Keheliya Rambukwella attempted to justify the bill saying that the aim was to make underutilised companies stronger.

When questioned as to how a Government burdened with dozens of loss-making companies could make those listed in the bill turn around, he insisted that there were instances when the Government had maintained profit-making companies. “The theory that all State enterprises are loss-making is false. The Government took over Sri Lanka Insurance and Litro Gas recently and these are still profit making,” he said, dismissing contentions of the latest Committee on Public Enterprises (COPE) finding Rs. 19 billion in losses among 249 State institutions.

He also dismissed contentions on the bill on reducing Foreign Direct Investment into the country by pointing out that the Government acting as a watchdog would encourage company management to be stronger.

“Reducing Foreign Direct Investment is not the intention of this Government. We have taken and will continue to take measures that will streamline institutions and open up investment opportunities in Sri Lanka. It is not possible that this bill will reduce foreign investment as some factions have stated,” he said.

Despite criticism, the Government is continuing with its plans to table the bill before Parliament on 7 November. When asked as to why the Government is pushing it in such a hurry, the Minister responded that the aim was to pass the bill into legislature before the Budget.

“If we do not pass it before the Budget, we will have to wait until the next Budget in 2012.”