Foreign universities invited to invest in Sri Lanka
View(s):Ferdinando appointed acting Secretary of Investment Promotion Ministry
By Bandula Sirimanna
Sri Lanka plans to attract investment from top foreign universities and education institutions in an effort to reduce the number of students seeking costly overseas education. Newly-appointed Investment Promotion Minister Lakshman Yapa Abeywardena told the Business Times in a phone interview that this investment drive would be the initial focus of the ministry, which would help save much needed foreign exchange as well.
Mr Abeywardena said a 3-pronged strategic plan for investment promotion is to be developed to promote foreign investments, re-assessing the relevance of previous plans of the country and see what modifications may be necessary.
The re-assessment of the foreign investment strategy follows the lowering of the country’s 2013 foreign direct investment target to US$ 1.5 billion, clearly implying that it had failed to achieve the original target of $2 billion for 2012, which was later revised downwards to $1.75 billion.
His comments came a few days after M.M.C. Ferdinando, former acting chairman of the Board of Investment (BOI), was appointed acting Secretary of the new ministry. Informed sources said the BOI will come under the purview of the new ministry. This is contrary to earlier reports that Treasury Secretary Dr. P.B. Jayasundera would continue to oversee this institution or be appointed as the secretary to the new ministry, in addition to his current engagements. Last week Dr. Lakshman Jayaweera, a chemical engineer by profession, took over from Mr Ferdinando as Chairman/Director General of the BOI.
Mr Ferdinando and Dr Jayasundera have had disagreements over the management of the BOI with the latter openly criticising the institution and accusing it of not doing enough to attract foreign direct investment. The Treasury Secretary has not seen eye-toeye even before with powerful businessman Dhammika Perera when he headed the BOI and other earlier BOI heads.
However informed sources said that the top level decision (from the President’s Office) to appoint Mr. Ferdinando has been taken to contain the powers wielded by the Treasury Secretary who wears several top hats, and owing to his ‘intervention’ in foreign investment projects as the Economic Development Ministry Secretary.
Minister Abeywardena said Mr Ferdinando has been appointed for a period of six months but his term would be extended if he is willing to continue, as he is an experienced and senior Sri Lanka administrative official. He said he has directed top officials to devise the plan to eliminate bottlenecks against attracting foreign investments.
Outlining his strategy, the minister said that he will consult local entrepreneurs who have already invested in foreign countries to seek their advice in attracting investors of those countries offering necessary incentives. The assistance of local entrepreneurs with knowledge of global trends will be sought to help in developing the strategy, he said. Measures would be taken to convene meetings with top officials attached to the BOI and other line ministries once a month to review the progress of investment promotion campaigns and to tackle bottlenecks.
These meetings would be one stop shops to tackle issues pertaining to foreign investments, he added.
Sri Lanka’s public policy formulation and law making processes will be reviewed to make any amendments needed to attract foreign investors.
He said changes should be made in land policy and necessary legislation should be drafted to provide lands for industrial ventures and hotel projects eliminating bottlenecks.
This task has been entrusted to the Ministry Deputy Minister Faizer Mustapha, he disclosed.
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