Refrain from playing politics to encourage FDIs, minister tells UNP

The UNP is making every effort to discourage foreign investments to Sri Lanka with the ultimate motive of retarding the country's economic progress, acting Mass Media and Information Minister and Economic Development Deputy Minister Lakshman Yapa Abeywardena told a media conference at the Government Information Department yesterday.

Abeywardena said that despite clear explanations made by him in Parliament and at media conferences about granting of lands to Shangri-La Hotel and to China's Catic Company for construction of hotels and shopping and residential complexes in Colombo, UNP MP Dr Harsha de Silva had criticized the government at a media conference recently about granting of lands to the Chinese Company.

He said that although they strongly criticized earlier about provision of lands to the Shangri-La Hotel project, documentary evidence presented by the government has made them to accept the transparency of the deal.

The minister said that foreign investors come forward for investments after carefully analyzing the economic viability of investments. Catic came forward to invest in the Colombo project only after Shangri-La and seven acres of land for Catic has been given for Rs 997 million, at a higher rate than the land given to Shangri-La. Abeywardena said that the UNP's earlier baseless criticism about Catic being not in the hotel trade was discounted by pointing out, with documentary evidence, that it has 11 hotels and 56 supermarkets.

"Despite that, they are making baseless allegations with the sole objective of discouraging foreign investments as they did when the government obtained the HSBC loan saying that they would not honour the loan if they come to power."

He pointed that no Opposition party in any country do such things as they do not play politics with the country's integrity and credibility.

Yapa said that the payment for these land offers, are not made neither to the Economic Development Ministry nor to the Tourist Authority and presented a photocopy of the receipt issued by the Treasury acknowledging the payment by the Shangri-La, and the letter issued by the Treasury to the Lands Commissioner facilitating the commissioner to finalise the land agreement with Shangri-La.

He said that the government has made every transaction in a transparent manner and in accordance with the standard government procedures and not like the sale of Wellawatte Weaving Mills and several other government establishments carried out by the UNP when they were in power. The minister appealed to the UNP not to act in a manner to discourage foreign investments and project a negative image of the country.

Abeywardena said the government entered into an MoU with Catic Co on February 15, 2011 and in accordance with the MoU conditions, Catic has established their Sri Lankan registered company in the name of Avic International Lanka Ltd.

He said that accordingly steps have been taken to handover the land to Avic International.

The minister said that Avic International has already paid the down payment of Rs 5.997 billion to the Treasury.

He presented photocopies of Avic payment made to the Treasury and the letter issued by the Treasury to the Commissioner General of Lands. He said total Avic investment will amount to US $ 355 million.

He said that hitherto the highest expenditure per day was made by American tourists which amounted to US $ 1,400.

"However, the Chinese are very economically vibrant and they spend about US $ 1,730 per day."

The minister said that about 65 million Chinese visit foreign countries per year and Catic Hotel will also provide a good opportunity to attract a large number of high-end tourists.

He said that about 130,000 Chinese tourists visit Maldives a year and although they travel to Maldives via Colombo, Sri Lanka has no way of attracting them, and Catic Hotel will also become capable of luring these tourists to Sri Lanka.

The minister said that due to political stability and the peaceful atmosphere in the country, Sri Lanka has become conducive for foreign investment and from January to June this year, the Board of Investment has entered into agreements for 42 investment projects. "This has brought over Rs 139,936 million as direct foreign investment to the country."

He said that local investors have invested Rs 33,201 million. "Rs 173,138 million has been invested for projects started within the first six months of this year. Agreements have also been reached for expansion of 23 existing projects. Foreign investment amounting to Rs 12,446 million and local investments amounting to Rs 52,674 million has been made for these expansion projects, generating 6,703 employment opportunities."

The minister said that due to the investments made in Sri Lanka within the first six months of this year, 24,469 employment opportunities have been generated.

Speaking about the forthcoming Kandy Esala Pageant, the minister said that there are 25 star class hotels and many lodgings and resorts in Kandy and in the surrounding areas. The room capacity is 1,300 rooms. He said that according to the Kandy Hoteliers Association, these rooms have already been reserved.

The minister said that Harsha de Silva has also criticized about the expenditure that would be incurred for shifting the security services units to Pelwatte comparing it with the expenditures being incurred to provide facilities to the people resettled in the North.

He said that it was during the time of Lord Mountbattan that Security Services Units were established in various places in Colombo and under the present arrangement, all units will be taken to one place and the total cost will not be incurred in one payment and it will only be released by the Treasury with the progress of the work.

He said that during the last two years, the government has spent Rs 33,000 million to develop infrastructure in the North.

He pointed out that although many developed countries implemented Marshall Plans to rebuild their countries after the Second World War, Sri Lanka setting an example to the whole world has rebuilt the North within the last two years implementing projects under normal circumstances.

Referring to the forthcoming Local Government elections, the minister challenged the UNP to win at least one local government institution in the South for which elections are being held. He said that even in the North, the government would make a significant dent this time winning a considerable number of local government Institutions.

Courtesy: development.lk