One-stop approval beckons investors to our shores

Investors are generally quick to grasp the benefits of the streamlined approach to brisker application processes. Brisker certification work-ethic attracts creditable investors while providing a degree of control to the government agencies to direct investment on the correct channels.

The Government has right by proposed a high powered body capable to meet investor needs in the areas of licensing and company formation, project approvals, design approvals, construction permits and investor visas.

A ministerial Sub Committee will review all aspects of the one-stop shop within two months.

Oversight

Oversight of investment proposals is a matter of great importance. The approval cycle must not only ensure the vitality of the investments accruing but also its implications on national security. The process must be conducive to a quicker flow of investment and ensure its fruition with least degree of bureaucratic delay. The review process is sequential, with ample concurrent review or collaboration between agencies without being cumbersome.

The Malaysian or Singapore systems, though somewhat different in genre, provide less red tape reducing the cost while retaining a good deal of entrenched governmental oversight in determining the types of investment that come in.

There are key areas associated with investment outlays that needed careful handling are design and construction, banking, land resources, environmental assessment, transport, health issues, highway capacity, port authorities and cargo handling, labour trade union and matters, energy and water resources.

Green technology

Sri Lanka is considered a good candidate for investment outlays in green energy. The list of potential venture capital inflow is very impressive. Singapore has set up its first clear emulsion diesel plant producing greener fuel for use in transport and industry; a very promising field for Sri Lanka. The new technology blends diesel, water and a proprietary biodegradable additive, which cuts down fossil fuel use by as much as 40 percent. The clear emulsion diesel plant is considered a break-through in technology.

There are also products made of refined beeswax that replace traditional polishes and paints. Blends of bee wax or paraffin wax dissolved in turpentine, or linseed oil to produce furniture wax and polish have become a billion dollar industry in the US.

One of the most important natural resources we possess is water and investment is being poured into water purification. The collection, cleaning and distribution of water would be the areas of growth Sri Lanka will see this decade. Aqua America (NYSE:WTR), which supplies water to nearly three million people and equally big purification company ITT Industries (NYSE:ITT), come to mind immediately-just examples obviously relevant.

Solar energy

Solar energy is powering homes, buildings and a variety of other items from lights to radios. Future looks bright for solar energy. Certainly here is where Sri Lanka would be forging ahead in this decade.

On a smaller scale, researchers are working with fuel cell technology to develop an alternative method of powering automobiles. The hydrogen powered cars will be commonplace by 2020. If this technology works, there are millions of cars - and millions of consumers waiting for it. Several companies are looking to establish outlets in countries with good and less costly labour supplies. Sri Lanka must explore this very seriously.

The waste reduction effort has come a long way. Recycling has become a standard practice and many things thrown away are now being reused. Household products such as paper, metal and glass are reprocessed.

The market for reusable waste oil, vegetable oil, batteries, cell phones, computers and even parts from cars is humungous. We have not even touched the outer fringes of this giant enterprise waiting to take off. It is predictable that Sri Lanka would attract some of those investors to our shores. Waste management companies with a large base of recycling facilities are looking for areas to invest.

Dr Mahathir

It was no surprise that amidst all the talk about investment potential, business leaders in Sri Lanka were privy to a face-to-face breakfast meeting last week with the legendary Malaysian leader, former Prime Minister Dr Mahathir bin Mohamed. Malaysia's detailed planning approach with greater flexibility afforded to prospective investors? while maintaining overall governmental command, became the economic model for decades.

The pragmatic Dr Mahathir had engineered a socio-economic transformation, lessening Malaysia's dependence on commodities and deepening its industrialization after a traumatic period of ethnic strife in that country.

The parallel to the emerging economic resurgence in Sri Lanka after the terror war is obvious.