Remove restrictions to improve FDI flows
November 13, 2014 2:05 am
By Mario Andree
Ceylon Finance Today: As the country worries over a possible shortage of US$ 1 billion foreign direct investments in 2016 for the anticipated economic gains, a senior minister claimed that if the government removed some of the restrictions, the Board of Investment would be able to attract more FDI and surpass targets.
Sri Lanka is in an ambitious journey of improving its GDP to US$ 100 billion by 2016 with a per capita income of US$ 4,000 by that time.
Minister of Investment Promotion Lakshman Yapa Abeywardena highlighted that the country's economy would be US$ 100 billion by 2016, and that foreign direct investment needed to improve and reach close to 5% to US$ 5 billion by that time.
However, the Board of Investment had predicted a shortfall of US$ 1 billion FDI's in 2016 to achieve the government's ambitious target.The BOI had claimed, FDI would reach only US$ 4 billion in 2016.
Minister Abeywardena, who previously tried to halt the recently introduced Land Law, after receiving several complaints from investors, said that if the government removed some of the obstacles his ministry and the country's investment promotion agency, the country would be able to achieve FDI goals.
Many investors both local and foreign had shown their disgust to the Ministry of Investment Promotion and several other ministries on the decision to restrict foreign ownership of land.
Minister Abeywardena attempted to convince the Cabinet that the land alienation law was ill-convinced, and that the government should consult all stakeholders before making any further decisions on this issue.
Sri Lanka failed to achieve the last two years' FDI targets failing short of US$ 160 million in 2012 and US$ 610 million in 2013 to meet US$ 1.5 billion and US$ 2 billion respectively.
However, this year seems to be promising according to the minister, who said that the country had received US$ 1.5 billion during the first 10 months to achieve this year's revised target of US$ 2 billion.
November 13, 2014 2:05 am
By Mario Andree
Ceylon Finance Today: As the country worries over a possible shortage of US$ 1 billion foreign direct investments in 2016 for the anticipated economic gains, a senior minister claimed that if the government removed some of the restrictions, the Board of Investment would be able to attract more FDI and surpass targets.
Sri Lanka is in an ambitious journey of improving its GDP to US$ 100 billion by 2016 with a per capita income of US$ 4,000 by that time.
Minister of Investment Promotion Lakshman Yapa Abeywardena highlighted that the country's economy would be US$ 100 billion by 2016, and that foreign direct investment needed to improve and reach close to 5% to US$ 5 billion by that time.
However, the Board of Investment had predicted a shortfall of US$ 1 billion FDI's in 2016 to achieve the government's ambitious target.The BOI had claimed, FDI would reach only US$ 4 billion in 2016.
Minister Abeywardena, who previously tried to halt the recently introduced Land Law, after receiving several complaints from investors, said that if the government removed some of the obstacles his ministry and the country's investment promotion agency, the country would be able to achieve FDI goals.
Many investors both local and foreign had shown their disgust to the Ministry of Investment Promotion and several other ministries on the decision to restrict foreign ownership of land.
Minister Abeywardena attempted to convince the Cabinet that the land alienation law was ill-convinced, and that the government should consult all stakeholders before making any further decisions on this issue.
Sri Lanka failed to achieve the last two years' FDI targets failing short of US$ 160 million in 2012 and US$ 610 million in 2013 to meet US$ 1.5 billion and US$ 2 billion respectively.
However, this year seems to be promising according to the minister, who said that the country had received US$ 1.5 billion during the first 10 months to achieve this year's revised target of US$ 2 billion.
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