Govt. to allow foreign investors to lease up to 5,000 acres of land: Ravi K

Monday, 7 December 2015 00:38 - - {{hitsCtrl.values.hits}}

Untitled-4 The Government may allow foreign investors to lease up to a maximum of 5,000 acres of land in the country to carry out new projects but they are not allowed to buy land, the Finance Minister Ravi Karunanayake said.

In an exclusive interview with The Hindu, the Minister said the Government was willing to relax the criteria in respect of labour intensive projects with the focus on job creation. Minister Karunanayake explained that a foreign firm can do business without paying 100% tax on the leasing of land, though they would not be able to buy land in the island nation. Earlier, the lease tax was very stiff, he added.

He said the only stipulation for the investors getting 99-year-long lease would be that they should not “indulge in buying land” and their investments should be active.

For the purpose of foreign investments, the Government had identified many thrust areas, each having a potential of $ 2 billion.

Asked whether foreigners would be allowed for projects proposed under the public-private partnership (PPP) mode in respect of the dairy sector and the construction of 100,000 houses in five years, Karunanayake replied in the affirmative and said the term “private” would mean a local or foreign investor while the term “public” would refer only to citizens of the country.