BOI targets $1 bn foreign investment

Uditha KUMARASINGHE and Irangika Range

****Many tax concessions await investors

****Growth in apparel, industrial, IT sectors

Information and Media Minister and Enterprise Development and Investment Promotion Minister Anura Priyadharshana Yapa told Parliament yesterday that the Board of Investment (BOI) is anticipating to attract foreign investment worth over US$ one billion to Sri Lanka during this year.

The Minister introducing four regulations under the Board of Investment of Sri Lanka law, said the proposed new regulations are aimed at expanding investment opportunities and develop available investment opportunities in the country.

According to the Minister, the BOI has attracted a large number of foreign investment to the country by achieving a considerable growth in the apparel, industrial and information technology sectors.

In a situation where the entire world has faced an economic recession, the BOI has been able to attract foreign investments worth US$ 865 million last year, he said.

The BOI has made arrangements to provide tax concessions to new investors. Potential investers will be given a 5,8 or 10 year tax concession according to whether the area for which the investment is made is normal, undeveloped or extremely undeveloped.

Meanwhile, the BOI has taken steps to encourage local investors.

The BoI has made arrangements to grant Rs. 650 million worth credit facilities during this year to encourage small scale entrepreneurs.

The BOI under the Mahinda Chintana manifesto has decided to establish 300 new factories.

The BOI has set up a large number of factories. The expansion of investment opportunities would directly help minimise unemployment in rural areas.

The BoI has declared districts like Ampara as the most remote district. Special tax concessions and other relief measures will be given to potential investors in the most remote areas, the Minister said.

Minister Yapa said President Mahinda Rajapaksa has also given a special relief package to the export sector.

“This has resulted in making a rapid growth in certain export sectors such as apparel and ceramic industry sectors.

The Government has already carried out a series of work for the existence of the export sector. These new regulations will also help rectify certain errors in the export sector,” the Minister said.

The BoI has laid special emphasis to upgrade the living conditions of apparel sector employees.

The Government has provided series of concessions to the apparel sector.

This has resulted in making a considerable growth in the apparel sector, he said.

During this year, the BoI has already made a US$ 100 million investment with Airtel and US$ 680 million investment with another leading foreign investor, the Minister added.