SL attracts $640 mln FDI from four Chinese projects as an outcome of CHOGM
Chasing a moderate Foreign Direct Investment (FDI) target of US$ 2 billion this year as an outcome from the Commonwealth Heads of Government Meeting (CHOGM), Sri Lanka has been able to attract US$640 million Chinese investments through four projects, a Board of Investment (BOI) official said. The BOI had submitted 50 project proposals to the Commonwealth Business Forum of the CHOGM, eight months ago in November 2013, out of which only 16 projects attracted foreign investor interest, he revealed.
These projects included a Five Star Hotel, Shopping Mall and Duty Free Facility and Multi Level Car Park at Bandaranaike International Airport, Katunayake as well as a Transit Hotel at Mattala Rajapaksa International Airport, he added. When contacted over the phone to obtain details of FDIs in the aftermath of CHOGM, Investment Promotion Minister Lakshman Yapa Abeywardana said that several investors have stepped in to make investments following the conclusion of the summit and he directed his media unit to provide more accurate details to Business Times.
While briefing these details on the directive of the Minister, BOI Director Promotion Dilip S. Samarasinghe had asked this reporter as to whether these facts are going to be included in a negative article.
The Business Times told him that, that is a prerogative of the newspaper and that he has no business to ask the nature of the article as his duty was to abide by the directive given by the Minister.
Meanwhile a senior government official, who wished to remain anonymous, told the Business Times that only MOUs were signed with four Chinese investors and there is long way to go for the $640 million investment to be realised.
He said while these investments are on paper not a single dollar has been received in Foreign exchange as a result of hosting CHOGM.
Though not a member of the Commonwealth, China dominated among those present at the CHOGM by providing millions of dollars in aid to Sri Lanka to renovate the summit venues, besides striking lucrative commercial deals worth billions of dollars, he pointed out.
Since 2010, Treasury Secretary Dr P.B. Jayasundera has been trying overhaul the BOI streamlining it under a CEO to cater to the needs of specific sectors and in future act as a facilitator of FDI, but it was of no avail, he revealed.
Dr. Jayasundera emphasised at several forums and official meetings that the BOI should be entrusted with the task of promoting quality investment abroad as well as monitoring and follow-up activities while managing export zones efficiently.