BOI focuses on promoting investment in the regions
As part of the process to fast track investments and conform to
Government policy, the Board of Investment of Sri Lanka (BOI) is holding
discussions to inform the Business Community of the Government's key
initiatives.
The 300 Factories Programme, one of the main objectives of the
Mahinda Chinthana, is to be launched shortly and its aim is to bring
investment into the regions.
The first meeting, convened under the chairmanship of Minister of
Enterprise Development and Investment Promotion Rohitha Bogollagama, was
held at the Ministry with the major Chambers of Commerce and Industry.
BOI Chairman and Director-General Prof.
Lakshman R. Watawala stated: "The main purpose of the meeting is to
brief you on the Government's new programmes and opportunities available
to the private sector. The main programme that we will be initiating is
the 300 factories programme which will be launched in 300 divisional
secretariats."
According to Prof. Watawala, this programme would take the focus of
development out of the Colombo and Gampaha districts to the outstation
regions, helping in rural development and generating employment in
undeveloped areas.
With the official launch of the programme on January 24, the meeting
was held to inform participants of the programme's objectives, enable
them to disseminate this knowledge to all members and others.
Speaking on the incentives, Prof. Watawala said tax holidays that
would be offered would vary from five to 10 years. "They are classified
as Non-Difficult (five years), Difficult (seven to eight years) and Most
Difficult (10 years) Areas," he added.
In addition to this, any new plant and machinery imported for use in
such an undertaking would be exempted from any Customs Duties and Value
Added Tax.
"Cost of relocation would be tax deductible provided there is no
reduction in the number of employees. The BOI would also assist in the
location of land and provision of relevant infrastructure facilities for
these factories," he added.
Prof. Watawala pointed out that banks would be providing loans at
lower interest rates. The interest income derived by any lending
institution arising from any credit facility granted to companies for
such investments would also be exempted from tax. "We are already
discussing with the bank so that they will provide this facility to
investors," he added.
"This would be a very good opportunity for the business community to
contribute and truly become the engine of growth. We will be there to
guide and assist you."
Bogollagama said "this was an opportunity for everyone to be part of
the development drive.
"At the time of formulating the Mahinda Chinthana, I said the
industrial development and enterprise development must focus on the
rural sector," he said.
"An industry or enterprise, in whatever sector it belongs to, is
expected to offer around 200 jobs, thereby creating an environment where
there are additional avenues of revenue generation to sustain their
day-to-day life," Bogollagama said.
"Even an educational establishment, or a hospital or any other type
of service sector development will be part of our 300 enterprises
created," he added.
The Minister's speech was followed by an open discussion with the
audience. |