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.