Existing investors show confidence in Sri Lanka, says BOI
Mr, Sanjaya Mohottala
The Board of Investment (BOI) said that inspite of the current economic issues and the current emergency laws existing investors have confidence in Sri Lanka and continue to reinvest as was evident last year and so far this year.
Last year most investments came in the form of reinvestments as investors are more familiar with positive happenings in the country, Board of Investment (BOI) Chairman Sanjaya Mohottala said during an interview with the Business Times in response to a question on the reaction of investors to the current emergency laws implemented in the country.
Investment approvals granted in 2020 totaled US$2.3 billion. Capital formation or investments amounted to $1.4 billion, out of which 50 per cent is FDI and 50 per cent is local investment, the BOI statistics state.
Further in 2021 1H there was a total of $770 million in investments out of which $400 million is from FDIs. The BOI also states that $1.7 billion worth of large scale negotiations are underway and that $600 million worth of projects have been approved and another $1.5 billion to $2 billion worth of projects are in the pipeline.
He also pointed out that despite the current GSP + concerns raised in the EU Parliament “we need” to continue to grow by going forward not through the current quota system but by engaging in bilateral agreements.
The BOI is engaged in carrying out proactive campaigns to keep the public and investors aware of Sri Lanka and its offerings, he explained.
In 2020 despite COVID-19 and about four months of closure the country was able to approve $2.3 billion worth of projects while some are in the pipeline.
While the Central Bank is engaged in settling the debt crisis they have been working together with the Treasury and the BOI to ensure that they are able to overcome the macro challenges in a bid to obtain increased investments into the country.
The state wants to attract increased investments into the rubber industry, ICT, apparel, pharmaceuticals and tourism segments, the chairman said.
The government is also looking at enhancing the tourism sector by increasing room capacity upto around 30, 000. In the agriculture sector plans are underway to attract investments in food processing, Mr. Mohottala said.
The BOI is also actively hunting for investments with the embassies as part of a programme in countries like Korea, China, India, the UAE, Qatar, the US and the UK.
This year the BOI is hoping to achieve a target of $1 billion in FDI having accrued investments amounting to $400 million in FDI and $760 million in capital formation within the first six months, he said.
In pushing towards more manufacturing they will be targeting investments into the rubber sector promoting the manufacture of tyres and gloves.
He noted this is expected to benefit the eco system as well and ensure that with the investments that have come in last year the rubber output can double from the existing 70-80,000 MT of rubber production.
The Hambantota port has attracted one of the large tyre manufacturing plants with an investment of $300 million, a $150 million yacht building plant and establishment of a special zone from a logistics service provider for the manufacture or assembly of electronics.