Sri Lanka to look into pending foreign direct investment proposals
Sri Lanka is to look at pending foreign investment proposals stuck at various government ministries and departments in order expedite their approval process, to bring in much-needed foreign exchange to the country.
Speaking at a recent Cabinet briefing recently former Minister Nalaka Godahewa said that many foreign investment proposals that have already come to Sri Lanka have been stuck at various government ministries and departments due to various reasons.
For example, he said that several investment proposals which have already come to the Urban Development Authority (UDA) related to land are still pending; similarly, investment proposals are pending at Colombo Port City, the Board of Investment (BOI), and the Railway Department.
Godahewa said that the BOI Chairman has informed about several investment proposals which are pending, as BOI has not had an opportunity to meet senior officials of relevant ministries.
Further, he said that when looking at the past decade, Sri Lanka has failed to attract foreign investments of close to US$ 2 billion except in 2018 (US$ 1.6 billion), while the foreign investments have significantly dropped in the years after.
The Central Bank of Sri Lanka’s (CBSL’s) annual report showed that foreign direct investments (FDIs), including loans received by BOI companies during 2021, increased by 13.6% to US$ 780.2 million compared to US$ 687.0 million recorded in 2020, while the stock position of foreign investments amounted to US$ 17 billion.
The Board of Investment (BoI) has also stated that Sri Lanka has received project proposals worth billions of dollars, indicating a growing confidence among foreign businesses/investors in Sri Lanka’s economy. Despite facing pandemic challenges, Sri Lanka’s economy has shown resilience and is once again on the path to recovery while the private sector has recorded impressive growth and profits. Sri Lanka is working towards placing the country as a growing business destination in the South Asian region. The country’s geographical positioning in the Indian Ocean and the many trade ties enjoyed by Sri Lanka have added to its attraction as an emerging business destination. Given the country’s growing business potential, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka.
|Article Code :||VBS/AT/18052022/Z_1|