BOI discontinues FDI project approvals by the Finance Ministry
While strengthening Sri Lanka’s Board of Investment (BOI) functions in accordance with the 2006 gazette notification with regulations, the Finance Ministry involvement in the handling of Foreign Direct Investment (FDI) negotiations and approvals has been discontinued, a top official of the country’s investment agency revealed.
BOI Chairman Upul Jayasuriya told a meeting of BOI officials, tax consultants, lawyers, investors and journalists in Colombo on Monday that foreign investors need not go to the Treasury or the Economic Development Ministry for project negotiations and finalisations under the present regime. Earlier foreign investors had to get the Finance Ministry Secretary’s consent for project proposals before submitting it to the BOI for finalisation under the previous regime.
He noted that the BOI is promoting and attracting investments providing all services related to it under one roof and investors will not have to visit other state agencies for their needs. Accordingly, the provisions contained in the 2006 extraordinary gazette dated 02.11.2006 should be read with the BOI Act of 1978 to understand the provisions apply to the 2015 tax year.
The BOI Chief said the government will refrain from using the Strategic Development Projects Act in future investment proposals.
Mr. Jayasuriya said ‘concessions already granted to investors under this Act will continue”.”But the government has decided they would not apply the Act in future investments other than for very compelling reasons,” he added.
He noted that 37 private companies have been taken over by the government under Revival of Underperforming Enterprises and Underutilised Assets Act of 2011and it has sent wrong signals to investors discouraging foreign investment. The BOI is currently negotiating four foreign direct investment (FDI) agreements amounting to over US $ 4.5 billion.
Sri Lanka has attracted $1.6 billion worth of FDI last year but this time the BOI is initiating action to sign more than $4 billion worth of foreign investments with four major companies, he disclosed. Mr. Jayasuriya pointed out that a plan has been devised to set up 45 economic zones similar to free trade zones, which has more access to labour in respective areas.