Sri Lanka will launch a major campaign to woo foreign investments to Sri Lanka and also ensure that these investments would also move to villages as well, new Minister of International Trade and Investment Promotion, Bandula Gunawardena said.
“The recently imposed taxes that discouraged people from sending remittances back to Sri Lanka would be taken off. Attractive tax holidays and other benefits would be offered for both local and foreign investors to woo FDI.”
Speaking at his maiden press conference after assuming duties as the new Minister at the BOI auditorium last Friday he assured that a level playing field for both local and foreign investors too would be created. He also said that local entrepreneurs too had second thoughts to re-invest due to high and uncalled-for taxes and these too would be removed and a special incentive package would be spelled out at the next budget. In the very recent past famed local investors were asked to come to FCID and sit for hours on benches and this would be ended and due respect would be provided for local entrepreneurs.
“We are now proposing an “investment promotion package” to private sector local and foreign investors to protect them and to provide them special incentives. “This package would be available to those who invest in projects approved by the Finance Ministry.”
He said this proposal would provide unprecedented incentives to local producers. “We will also ensure that the dollars that are invested in Sri Lanka would move to the villages as well and their money flow would increase.”
The new Minister said that there is huge gap between imports and exports and this is the main cause for depreciation of the Sri Lankan rupee. The quickest and most productive way to breach this gap is to get more FDI and also increase exports. This is a priority area that we are currently addressing.”
“We are not keen to turn villagers upside down (Gam Peraliya) but are keen to uplift the villages and would assist in this regard,” he said.
Asked to comment on the muck talked about Sri Lanka and Singapore FTA, he said that this deal would be reviewed and corrected where both countries would end up as winners. “Under the preset FTA regulations over 4,000 items can be imported to Sri Lanka sans duty.”
He said that a country must sign bilateral agreements where both countries end up as winners and the new government too would work in this manner when it comes to future FTA and other foreign trade agreements. The best example in this regard is the Ceylon China Rubber Pact signed in 1952 and abolished in 1982. To date it’s the world’s longest trade pact.”
“My ministry will come up with the proposal to set up 5,000 export processing villages to boost exports within a short period. A similar scheme was also implemented by former President R. Premadasa when he promoted the setting up of garment factories all over Sri Lanka. Agriculture and industrial products with a permanent market would be processed in these villages. Thailand, Vietnam and Cambodia follow such a system and a similar effort was made by former Trade Minister Lalith Athulathmudali. We will follow this model,” he said.
Gunawardena also said that some bodies like the Ministry of The Department of Export Agriculture (DEA), Sri Lanka Standards Institute, Trade Promotion Missions in Foreign Ministry and similar institutions that come under his purview should be gazetted under the Ministry of International Trade and Investment Promotion.
The Minister also said that they would not seek revenge from any investors and would not unfairly hold up development. “The UNP government put on hold the Port City Development project signed by two heads of state for over one year and this had a major negative impact on foreign investments,” he said.
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