Bureaucracy hinders investor confidence - Aitken Spence Director

Ramani KANGARAARACHCHI

Fear on the unknown is the first obstacle that the plantation industry is facing in diversifying towards a new approach, Director, Head of Business Development and Plantations Aitken Spence PLC Rohan Fernando said.

Addressing the fourth annual conference of the MBA Alumni Association, University of Colombo held at Intercontinental Hotel Colombo, he said there is an enormous level of bureaucracy in getting project approvals, which delays all work.

Lack of confidence from investors, is also a serious problem and the inconsistency of Government policy has been the main reason for this, he said.

He recollected that in the past many investors faded due to bureaucratic issues.

“Cost of finance and availability becomes a major issue because the banks are reluctant to support when there are no co-lateral businesses involved,” he said.

Opposition from workers due to lack of awareness, and lack of proper land ownership policy are other and constraints, he said.

He pointed out that massive wage increases for plantation workers is another major problem as the industry has to compete in the international market. From 1992 the wage cost has been increased by 200 per cent, he said.

Fernando regretted that although the plantation industry has all the resources they have not been made use of sufficiently and there had been a number of missed opportunities for the country as it has not explore the potential in eco-tourism, hydro power projects gemming and horticulture.

The conference held on the theme ‘Beyond Traditional Boundaries’ was to help create an environment and business culture.

Chairman Laugfs Holdings WKH Wegapitiya, CEO Eco Power Dr. Romesh Bandaranaike, Managing Director Jetwing Hotels Hiran Cooray.

Joint Managing Directors Triad Advertising Dilith Jayaweera and Varuni Amunugama spoke on overcoming challenges faced by Sri Lankan entrepreneurs.