Sri Lanka gets Harvard assistance to promote foreign investments
Sri Lanka is getting assistance of the Harvard Centre for International Development (HCID) in attracting foreign direct investments (FDIs) promoting emerging exports, targeting new non-existent industries, identifying and engaging with potential new investors, fixing the investment climate for new emerging industries and figuring out how to create new tourist destinations.
The Board of Investment (BOI), Sri Lanka Export Development Board (EDB) and Sri Lanka Tourist Board (SLTB) have joined hands with the HCID to implement this initiative to identify and facilitate new or emerging export sectors and enlarge Sri Lanka’s exports, BOI Chief Dumindra Ratnayaka said in Colombo on Tuesday.
Five teams of experts are working with Harvard, all focused on issues relating to exports and FDIs, he disclosed at a meeting convened by the Council for Business with Britain in collaboration with the Ceylon Chamber of Commerce and the BOI.
In addition, HCID is coordinating with a Sri Lankan team on the trade negotiation strategies with India, China and Singapore with a view of opening new markets for old and new exports alike, he added.
BOI staff has also been receiving training programmes conducted by Harvard University’s Centre for International Development, McKinsey Consulting and the World Bank Group.
This is in line with new targets set for the BOI, delivering ambitious development goals set out in line with the present government’s economic strategies; he said adding that the investment promoter is set to play a key role in contributing to the sustainable development of the country.
It hopes to facilitate FDI into the country effectively by establishing an online one stop-shop with World Bank assistance by mid next year, the BOI Chief revealed.
This virtual platform is now being developed to enable investors to obtain all key agency approvals through the ‘virtual’ route.
The approval processes of at least 24 line agencies have been mapped and there will be consensus reached between those individual agencies and BOI on the simplest or shortest possible mechanism to grant approvals.
This National Single Window will pave the way to establish a system that integrates those agencies dealing with various clearances approvals in trading across borders, he added.
The BOI plans to attract US$ 1.5 billion FDI through foreign investment projects this year and its target for 2020 is $5 billion, he said adding that the approvals mechanism at BOI has been improved to avoid delays – a complaint frequently made many investors.
FDI of BOI enterprises to the country which was on a declining trend since 2014 with a drop of 37 per cent in 2015 and 17 per cent in 2016 has seen a slight turnaround in 2017 with an amount of $711.2 million in the eight months up to August.
The BOI now uses a template developed in consultation with McKinsey to screen all applications, assesses quality of investors through a more robust and holistic approach, and provides responses to new applicants as soon as possible.
Outlining the investment project proposal appraisal process, he noted that such proposals are submitted to the Single Window Investment Approval Committee (SWIAC) appointed by the Cabinet Committee on Economic Management to evaluate and take a decision on approval.
The projects approved by SWIAC are referred to an Investment Facilitation Committee (IFC) chaired by an Advisor to the Prime Minister to fast-track the external approvals/clearances, etc to prevent existing bottlenecks hampering projects, he pointed out.
Mr. Ratnayake noted that a massive industrial park will be set up in Millaniya, Kalutara at a cost of Rs.3.5 billion by a Thailand company and it will open the gates for foreign investors to start their ventures here in Sri Lanka.
Rojana Industrial Park Public Ltd of Thailand, a joint venture between Japan’s Nippon Steel and Thailand’s Vinichbutr Group, will operate and manage this industrial park, he added.