Consistent polices essential for FDI: Butenis

Friday, 25 May 2012 03:06 - - {{hitsCtrl.values.hits}}

Calls for more transparency and says lack of progress main reason for reduced interest

Inconsistent policies and lack of transparency is preventing foreign companies from investing in Sri Lanka, US Ambassador Patricia Butenis told a conference yesterday, calling for the Government to reduce red tape and improve good governance.

US Ambassador Patricia Butenis addresses the forum organised by the Sri Lanka America Society (SLAS). Others from left are President SLASS Mansoor Ghouse, International Monetary Fund (IMF) Resident Representative Koshy Mathai, Co-Chairperson Kalyani Ranasinghe and Co-Chairperson Tissa de Alwis – Pic by Upul Abayasekara US Ambassador designate”] Patricia Butenis US Ambassador designate”] Patricia Butenis

Addressing the gathering, Butenis admitted that she has had a “spotty” record in improving imports from the US to Sri Lanka and getting foreign companies to invest due to the myriad of challenges in starting a new business.

She pointed out difficulties in registering property, bidding for tender procedures and confusing tax regimes as among the main reasons for the reluctance. “Despite Sri Lanka gaining in the rankings of the World Bank Ease of Doing Business Index, there are clear shortcomings that need to be addressed.”

She noted that during her tenure imports from the US increased by around 70 per cent but that America remained Sri Lanka’s single biggest trading country, which showed the strong relations shared between the two countries.

Butenis went onto praise the government on its hub policy and strong economic growth but stressed that liberalisation of investment laws were needed if large and long-term foreign investment is to reach Sri Lankan shores.

Nonetheless, the Ambassador, who wraps up her tenure in Sri Lanka this year, emphasised that Sri Lanka has great potential to experience strong economic growth and that Government policies are in line with these expectations.

Highlighting the strong relations between Sri Lanka and US she outlined the work done by USAID to promote reconciliation and investment in the north and east through private public partnership. She insisted that this assistance would remain consistent.