Govt. to adopt new mechanism to fast-track FDIs
View(s):Sri Lanka is set to adopt a vibrant mechanism to attract Foreign Direct Investment (FDI) amid concern that the authorities are likely to fall short of the target of US$2.5 billion this year.
According to latest official projections, FDI is expected to be subdued to a level of $800 million in 2021, little over $670 million achieved in 2020.
With the aim of fast-tracking foreign investment a vibrant mechanism has been devised by the Finance Ministry to receive, evaluate and approve investment proposals, Ministry sources said.
In order to meet the urgent FDI need of the country, the new mechanism is to be implemented to facilitate the line ministries and government agencies for the expeditious execution of investment proposals.
A Cabinet Appointed Management Committee on Investments (CAMCI) has been set up to implement this mechanism, a circular issued by Treasury Secretary S.R. Attygalle revealed.
It will be chaired by Mr. Attygalle with senior government officials as members and a Standing Advisory Board (SAB) comprising senior professionals with experience in public and private sectors.
The CAMCI is also authorised to co-opt any officer or expert as required in facilitating these deliberations.
The Cabinet of Ministers has authorised the CAMCI and the SAB, notwithstanding the provisions laid down in the procurement guidelines, to ensure that all matters pertaining to investments are provided end-to-end solutions.
This includes evaluating the investment proposals received from investors including the clearing of the investment proposals received, liaising with the investors, engaging in the required negotiations with investors and the associated stakeholders and agencies.
It will also be deciding on the methodology to be adopted in executing the transactions, and other ancillary activities that is associated in ensuring that credible investments are realised, the circular indicated.
The SAB will also assist the Secretary to the Treasury to fast-track the investment project pipeline that is already lagging behind. The SAB has been empowered with authority to engage with any line agency or entity if necessary.
It is also authorised to liaise with any agency as directed by the CAMCI which shall include giving directions and monitoring the progress of such investment proposals to ensure immediate compliance.
The circular has directed Secretaries of all Ministries/State Ministries to forward to the CAMCI, all details of investment proposals, that have been received and not yet finalised and also the details of investment projects that are lagging in terms of both the financial and physical performance.