Parliament

Foreign investments play key role in economic development - Dr Amunugama

Sandasen Marasinghe and Irangika Range

Deputy Speaker Chandima Weerakkody presided, when Parliament met at 1 pm yesterday. After the presentation of papers and oral questions, the House took up the order under the Strategic Development Projects Act No 14 of 2008 for debate.

Finance and Planning Deputy Minister Dr Sarath Amunugama: The objective of the order being debated under the Strategic Development Projects Act is to attract large scale foreign investments to Sri Lanka. Foreign investments play a key role in the economic development strategies in any country. Therefore, new strategies and procedures should be adopted to attract more and more foreign investments.

Sri Lanka has a growing tourism industry since gaining independence from the British in 1947. Since the end of the war against the LTTE in May 2009, the country had seen increasing tourist arrivals for the past five years, where many beautiful resorts, hotels and spas have been opened.

Incorporating the diverse culture of the country, various tourist establishments here offer visitors unique and memorable experiences. Tourism has a great economic potential and it must be planned and managed to yield the optimum benefits.

Our goal is to promote Sri Lanka and its tourist resources to the world.

Developing current markets and creating new markets are vital and the government is focused on building market confidence, ensuring profitability and developing investor confidence amongst its various stakeholders.

SL economy collapsing

Ravi Karunanayake (UNP): Sri Lanka's economy is collapsing today. The government is violating the Constitution. Foreign investors are more vigilant and they are aware of these unlawful activities. Do you think that investors would come here and invest their money in this situation?

In order to attract more foreign investors, a conducive environment should be created to win their confidence. We appreciate eliminating terrorism. But you have to abide by international rules with regard to human rights. Without respecting international conventions and building investor confidence, you cannot expect foreign investors to come here.

Massive growth in tourism

Disaster Management Minister Mahinda Amaraweera: The tourism sector in Sri Lanka, saw a massive growth after the end of the war in 2009 with the arrival of tourists reaching record levels. The government has already created a conducive environment to attract large scale foreign investors. Infrastructure facilities have been developed. Tax exemption periods have been declared to facilitate investors. A number of star class hotels have come up to provide better facilities to the rising number of tourists arriving in Sri Lanka.

Benefits enjoyed by a limited group

Anura Kumara Dissanayake (DNA): The government says the country is developing rapidly. But if you go to rural villages, you could see how people are suffering. We can see that real benefits of development have not reached the rural community. It is only a limited group that is enjoying all the benefits of development.

These orders have a constructive feature which is that the tax relief that was being provided to those industries are open. We have come to know them before hand, not like in BoI projects.

When we come to know the benefits and relief provided by the BOI to businessmen, after decades, those people had already fled. But here if is not like that.

But all these development projects will bring prosperity only to a limited crowd in the country who have power.

This Act says that a full tax will be taken from these businesses by 2043.

Technology and Research Minister Pavithra Wanniarachchi: As the members in the Opposition have got an opportunity to talk whatever they want as they are covered by the privileges. They attempt to damage the image of the leader of the country, this massive projects and the other leaders.They never talk facts.

What has our leader done? Our government could have passed all these using the provisions of the BoI. But as he is clean, honest and wants to serve the country, the government has put forward a new Act.

But the Opposition criticizes them hypocritically as they know they are unable to come into power. The Opposition speaks as if they had suddenly woken up from a deep slumber. We know the LTTE was attacking our economy. When all developed countries faced bankruptcy, we were able to bring a radical change to our economy. The Opposition is envious of the smiling faces of the common people. The Opposition members are not going to villages.

Now we have a proper mechanism to increase tourist arrivals to 2.5 million by 2016. Then who will benefit from it?

We are exploring for oil. However, our government under the leadership of President Mahinda Rajapaksa, is facing problems and developing the country as well as the rural sector.

Dr. Harsha de Silva (UNP): It is questionable if this Act is being used by the government to mislead the people in the country.

I never criticized the Shangirlla Hotel project. It is good that such hotels come up in Sri Lanka.

A sum of US$ 450 million was needed to build the Shangrilla Hotel. How could the Sheraton be built at a cost of US$ 73 million?

The Kriss Complex is being built, but not a single advertisement has been advertised over the selling of apartments in it. So there is no transparency. These are hat collection investors. How could they invest here? They can't pay the due amounts at the proper time.

Mohan Silva takes the Chair:

A.H.M. Azwer (UPFA): When the Sathosa was under Ravi Karunanayake, it went bankrupt. I suggest that a commission be set up to investigate it. The Opposition would have to suffer in this birth as well as in the next birth.

'Eran Wickramaratne (UNP)':

Govt not sole owner of public properties

The government is not the sole owner of all public properties and natural resources of the country. If the government wants to sell or lease out public properties and natural resources, it should be done following proper tender procedures. It is the responsibility of the government to protect public properties and natural resources. You cannot sell public properties at your will. All these transactions should transparent.

Tourism had prompted expansion and renovation of facilities

Child Development and Women's Affairs Deputy Minister M.L.A.M. Hizbullah: The tourism sector has recorded a massive growth after the end of the war in 2009. The country has seen tourist arrivals increasing for the past five years, which had prompted local hotel operators to either expand or renovate their existing facilities to cater to the growing demand.

Also the sector saw the entry of several new operators who wanted to have a slice out of the growing tourism market.

Victor Anthony (UPFA): One of our major challenges is attracting more and more foreign investors. In order to achieve this target, we have to focus on building investor confidence, creating a conducive environment for them. During the past five years, we have been able to achieve a significant progress in the tourism sector. This had been proved with the ever increasing number of tourist arrivals in Sri Lanka for the past few year.

Sujeewa Senasinghe (UNP):

UPFA MP Hunais Farook takes the chair:

We the UNP members, do not oppose development. But we are against unlawful and illegal transactions made by the government. The government has no right to sell or lease out public property without following proper tender procedures. There had been no transparency in all deals which had taken place during recent past.

Industry and Commerce Minister Rishad Bathiudeen: Sri Lanka has recorded nearly one million tourist arrivals during the last year. The total revenue earned from the tourism sector was US$ one billion, compaired to the revenue of US$ 830 million in 2011. We received the highest number of tourists during December 2012, the highest ever monthly figure in the island's tourism history.

Visitors from Europe, Asia and the Middle East grew last year. A number of tourists and investors have been significantly increasing for the past five years. We are planning to attract 2 million tourists by 2016.

R Yogarajan (UNP): You do not allow us to speak. If you don't agree with us, answer us but don't interrupt.

You are hoping to have 2.5 million tourists in 3 years time. But consider the tourists who came last year? They were quality tourists. Out of them, 225,000 were Indians. I am a person of Indian origin. I am not saying they are not quality tourists.

You are a government that is relying on remittances coming from workers in the Middle East. The government should ban the people going to Saudi Arabia.

Roshan Ranasinghe (UPFA): The Opposition members said that the investors coming to our country are hat collectors. But 'Krrish' is a reputed company. We have to accept and welcome the investors coming to our country, irrespective of their assets and positions. They come to our country relying on us. So they are a wealth to us and we appreciate them.

Deputy Speaker Chandima Weerakkody takes the Chair.

We understand that in some countries, even a large number of small investors contribute greatly to the development of a country. So I say, the Opposition should select their words when they comment on the investors who respect us and trust us.

One member said this country was beautiful and the government need not talk about it over and over. But who made this country ugly? The Opposition has no moral right to talk of the beauty of this country.

Land sold to investors not at meagre prices

Economic Development Deputy Minister Lakshman Yapa Abeywardena: The BoI was established in 1978. It never revealed the investments brought to the country or the relief given to them in Parliament. But this Act was presented in 2008 by the government under the leadership of President Mahinda Rajapaksa.

But by this Act, all details are revealed to Parliament. These lands have been given to investors at a value assessed by the government, not at a meagre price. An acre had been given to Shangrilla at a price of Rs 1,200 million. Is it a small amount? But when 13 acres had been given at Wellawatta during the UNP regime, only Rs 110 million had been remitted to the government.

The foreign investment during the Mahinda Rajapaksa government had increased by 55 percent, compared to the UNP government. It is a fact that the people should know.

Harsha de Silva said that the ITC in India that was commenced in 1975, was a hat collecting company. But it has 100 branches in 60 cities in India.

It is also one of the 10 leading companies in India. But it is a hat collector to Harsha de Silva. But all these investments came to Sri Lanka after 2009. The tourists arrival in 2009 was 44,700, but it increased to 1,005,605 in 2012. But who speaks against them? It was the UNP who said they needed peace and signed peace agreements.

We are not sad if it was the TNA who speak against us. The Shangrilla and ICT has paid in full to Sri Lanka. But Harsha misled the people.

The Shangrilla invests US$ 2,362 million and they are in progress. In Deniyaya and Jaffna, rooms are being built, as there had been no adequate rooms. Foreign tourists had resided in temples in Mirissa.

But the Opposition says development is not felt by the common people. Hambantota, Deniyaya and Jaffna are developing.

They criticize the Express way. When extended to Matara, Katunayaka, Puttalam, Kurunegala and Kandy, they would come to know who will feel the development.

The Opposition says the lands are not tendered when they are given to investors.

They should be given to the most suitable people and investors. Malaysia never tendered lands when giving over to investors. But we reveal the details with these transactions and investments to Parliament. The people have access to these facts. So we clearly state that this government has a need to develop this country.

We also state that this government would achieve this goal for the people of this country.

Parliament was adjourned until 1 pm today.

Yoda Ela an archaeological site

Irrigation and Water Resources Management Minister Nimal Siripala de Silva, stated that the Yoda Ela in the Anuradhapura district, which is of archaeological value, is to be renovated and conserved for the future generation as a part of their heritage.

He further stated that the historical Yoda Ela had been abandoned for 3 decades, as water had been provided from the Mahaweli project by means of another canal. He also stated that the 34 km long 'Yoda Ela' which was a gift from our ancestors, would be renovated on a request made by archaeological scholars and those interested in the field. The Minister said that an environmental report was being prepared for this purpose before the commencement of this project.

He said that a ceremony was organized in this connection and those who were interested had spent for the pandols and other decorations, but not by the government.

He made these observations in response to a question raised by UNP MP Buddhika Pathirana.

'Sports complex for use of all sports bodies'

Sports Minister Mahindananda Aluthgamage said in Parliament yesterday, that action had been taken to build an administrative complex for the use of all sports associations in the country.

The Minister was answering an oral question raised by UNP MP Dayasiri Jayasekera.

"This complex would be put to use for 52 sports associations and the complex is being built at Reid Avenue, which would be completed next March," the Minister said

Deputy Speaker raps Govt/Opp members

Deputy Speaker Chandima Weerakkody yesterday, stated that it was important that members of both the Government and Opposition remain in the House. He made this observation when Opposition Leader Ranil Wickremesinghe, brought to the notice of the House during the round of questions for oral answers immediately after the sittings of Parliament commenced, that attendance of Opposition as well as the Government was poor. The Opposition Leader made this observation when Chief Opposition Whip John Amarathunga pointed out that the ministers were not present in the House to answer questions for oral answer.