Foreign investment review process reactivated
In the wake of dwindling foreign investment inflows owing to the COVID-19 impact and economic setback, a new mechanism has been proposed with the aim of providing easy access to investors at a single point, official sources said.
A Committee comprising eight high officials of key ministries, departments and statutory boards headed by Treasury Secretary S.R. Attygalle is to be appointed to fast track foreign investments under this new initiative, a Finance Ministry cabinet memorandum revealed.
This memorandum is believed to have been compiled by a top bureaucrat with full powers to prevent the delay or stalling of foreign investment projects, due to various reasons including the lack of a stable economic policy and transparent, predictable policy regime.
The committee has been entrusted with task of expediting and making mega and mixed development projects efficient and produc tive streamlining the relevant procedures.
All government financial transactions, project investments, procurement and tender process will have to be expedited and carried out effectively and productively via this committee, according to the memorandum.
The process of setting up a digital unified single window clearance system is to be activated following the appointment of the committee so that access to regulators, policymakers and facilitators will all be available at one point for investors
This cabinet memorandum was submitted at the last minute by Prime Minister and Finance Minister Mahinda Rajapaksa at this week’s cabinet meeting, informed sources revealed.
Several ministers have expressed their concern on the duplication of procedures of ministries and proposed activities of the super committee in the implementation of investment projects.
The Cabinet of Ministers has decided to postpone the approval of the memorandum as several of them requested for some time to study the proposal, official sources divulged.
A senior official told the Business Times that this new committee is very similar to the Standing Cabinet Appointed Review Committee (SCARC).
SCARC was established in 2010 to approve foreign investment projects without public tendering or parliamentary approval, he said.
It was widely believed that proposals were approved without proper assessment of their commercial viability; narrow-minded political interests and corruption were more determinative under the SCARC purview at that time.
The Hambantota Port and Mattala-Hambantota Airport were among the mega foreign investment projects approved during that period.
This statutory body that handled competitive public procurement, including unsolicited proposals has become defunct with the change of government in 2015.
The members of the proposed new committee to revive investments are Treasury Secretary S.R. Atygalle,(Chairman), Urban Development and Housing Ministry Secretary Nimal Perera, Power Ministry Secretary Wasantha Perera, Labour Ministry Secretary N.P.D. U.K Mapa Pathirana, Deputy Secretary Treasury R.M.P. Ratnayake, Chairman BOI Sanjaya Mohottala, Director General State Enterprises Department P.A.S Athula Kumara, and Director General Foreign Resources Department Vishaka Amarasekera.