USD 218 m worth of FDIs in first quarter

Disna Mudalige

Sri Lanka has received Foreign Direct Investments (FDIs) worth USD 218 million during the first quarter of this year, Investment Promotion Minister Lakshman Yapa Abeywardena said.

Addressing a press conference at the Information Department yesterday, the minister said 37 foreign investment projects each exceeding USD one million have been commenced in the country from January to March. He said another 144 foreign investment projects each valued at less than USD 1 million have commenced during the said period.

The minister said Taiwan, Canada, the Virgin Islands, Netherlands, Singapore, UK, Australia and India were among the countries which have invested in Sri Lanka during the first quarter of this year.

He observed the allegations by certain parties that only India and China are investing in our country are proved baseless from these statistics.

He said the BoI has been receiving a large number of investment applications and among them there are 30 applications for large scale investment projects each exceeding USD 300 million. The minister said the country will receive FDIs from these projects in about two-three years. Abeywardena said these investments will be proceeded with according to the regulations of the BoI. The minister said the total value of these large scale investments alone amounts to USD five billion. Minister Abeywardena said the investors are given all facilities to commence their projects speedily and without hassle .

The minister said agreements have been signed for an investment worth Rs nine billion to commence a fully-fledged university in Negombo as an institution attached to the world renowned Raffles University in Singapore.

Abeywardena said an Information Desk and One Stop Shop are to be opened at the BoI for the convenience of the investors. A Monitoring Department will be established to constantly monitor the projects once they commence commercial operations. The minister said the goal of the ministry is to earn USD two billion as FDIs this year.

He further said the policy of the government is not to allow outright sale of lands to foreigners. However, to encourage the investors coming into the country, the land tax will be maintained at low rates. He said the circular on land tax will be issued next week, and the government plans to maintain this tax at a single digit level. He said if the investors have been constantly operating in Sri Lanka over the past 10 years bringing in FDIs to the country, such investors may be excluded from this tax.

Commenting on the Krrish Group investment, the minister said 81 percent of the money of the investment has been received and the rest of the money will be received by May 31. The minister said Rs 4,049 million of the total of Rs 4,995 million of the project has been received so far.

He further said from 1978 to 2005 the country received only USD 4,668 million as the FDIs, but from 2005 to 2011 the country received USD 5,476 million and this was a 64 percent increase.

Responding to a question by a journalist, the minister also stated the garment industry is prospering. Dismissing allegations, the minister said the decrease in the number of garment factories is due to mergers and being absorbed by big factories. He said when considering the foreign exchange earned by the garment exports there is an increase, adding that about USD four billion is earned through these exports as at present.

He said the aim of the government is to increase the foreign exchange from garment exports up to USD five billion within the next two years.

Ministry Secretary M M C Ferdinando and BoI acting Chairman Channa Palansuriya also participated.