BoI optimistic of US$ 1b FDI target for 2008

Hiran H. SENEWIRATNE

“Indian and Chinese investors have accounted for most of the major investments and infrastructure projects in Sri Lanka, therefore, BOI’s focus has diverted its attention to attract Chinese and Indian investments”

The Board of Investment (BOI) is optimistic of achieving the US$ one billion Foreign Direct Investments (FDI) landmark before the end of this year. For the first six months of the year, it was able to secure more than US$ 425 billion worth of FDI into the country.

“With our proper investment promotion strategies and good investment climate we were able to secure nearly US $ half a billion of FDIs into the country during the six months of the year,” BOI Chairman/Director General Dhammika Perera told the Daily News Business.

“Today, many FDIs are coming from Chinese and Indian investors into the country. therefore, the BOI is focusing its attention to that region, as Asia is the fasted developing region in the world.”

He said that first six months of the previous year i.e. 2007, the BOI was able to attract only US$ 265 million which represents a 36 per cent increase in FDIs compared to the corresponding period of 2008. Therefore, at the end of March 2008, the total number of direct employment generated by BOI enterprises was 451,985, which represents a 9 per cent increase from the previous year, he said.

In the period January to June 2008, BOI enterprises continued to play a major role in the Sri Lankan economy exporting US$ 2.6 billion worth of goods and services.

This was a five per cent increase when compared to the corresponding period in 2007.

Perera said he had cleared all red tape to start and operate ventures in BOI approved zones while outside the zones they have eased out several barriers for certain ventures such as environmental friendly projects.

In 2008 there was a 3 per cent increase in the number of applications received for new projects and a 39 per cent decrease in expansions.

The increase in new projects indicates growing confidence on the part of new investors to invest in Sri Lanka.

In January to June 2008, a total of 129 agreements were signed by the BOI with investors.

This was a 16 per cent increase over the corresponding period in 2008. Estimated 17,744 new employment opportunities will be created as a result. Therefore, de- regulation of certain rules in the country has reflected positively and the BOI was on its way to promote FDI into the country, he said.

A total of 133 projects commenced implementation in January to June 2008.

This was a 36 per cent increase form the corresponding period in 2007. These brought in Rs. 53,546 million and created an estimated 25,283 new employment opportunities in the country.

According to Perera, BOI will able to reach US$ one billion mark before the end of 2008 as because so many major projects are in the pipeline mainly from major foreign investors to the country.

“By removing strict bureaucratic red tape and other barriers especially from local government bodies, starting business ventures have been eased out.”

“BOI is giving way many incentives like tax holidays and duty free imports of goods to the country have attracted many foreign and local industrialists to start business ventures in the country.

“On going infrastructure projects have given an impetus to enhance their way to promote FDIs into the country, he said.”

“Indian and Chinese investors have accounted for most of the major investments and infrastructure projects in Sri Lanka, therefore, BOI’s focus has diverted its attention to attract Chinese and Indian investments since those are emerging economies in the word”, the BoI Chairman said.