Investor friendly policies increase FDI inflows

Investor friendly policies, simplified systems and procedures and business- like attitudes adopted by the BOI Sri Lanka over the last few years led to phenomenal growth of FDI inflows. BOI has achieved the highest ever growth of FDI inflow in 2008, which reached US$ 889 million. This was achieved in a year when worldwide FDI inflows were down by 15 per cent. These observations were made by Chandrasiri Kulasekera, Deputy Director General (Investment and Promotion) of the BOI, when he was addressing the opening the high level session of the UNCTAD - WAIPA Investment Conference held in Geneva, Switzerland recently.

This Investment Conference was held with a view to assess the impact of the global economic crisis on global FDI Flows and designed for investment promotion practitioners and policymakers to focus on issues faced by investment promotion agencies including emerging challenges and opportunities on how to attract and retain FDI.

This is a daunting challenge in the light of the current global economic crisis. It included a high level session on best practices in investment policies, parallel events and opportunities for the delegates to network.

The Conference was organised in co-operation with the World Association of Investment Promotion Agencies (WAIPA) where Sri Lanka was a pioneer member, on the occasion of UNCTAD's Investment, Enterprise Development Commission (03rd - 08th May 2009). Over 100 Investment Policymakers and Best Practitioners from all over the world gathered in Geneva to assess the impact of global economic crisis on FDI and share the experience of best policies adopted by successful Investment Promotion Agencies of member countries of WAIPA and UNCTAD.

Dhammika Perera, Chairman of the BOI and his Deputy, Chandrasiri Kulasekera, represented Sri Lanka. Sri Lanka's Permanent Representative in Geneva Mission, Dr. Dayan Jayathillake, addressed the opening session on behalf of Asia Regional Group and Ms. Ruwanthi Ariyarathna, Minister Commercial also participated.

Kulasekera, further went into elaborate on the measures adopted by Sri Lanka Authorities to improve the investment climate and attract major inflows. This was achieved by the introduction of innovative measures such as simplified application and approval procedures where the investment approval could be granted within a day.

The investor was freed of the burden of filing and lodging a large number of documents.

In addition there was a reduction of bureaucracy, of cumbersome practices, a reduction of waiting time, a simplification of the process of company formation and registration.

The long-term effect was an improvement of the doing business index of Sri Lanka.

The setting up of the Cabinet Sub-Committee on Investment Facilitation (CSIF) headed by the President to resolve the major policy issues faced by the investors is further proof of importance Sri Lankan authorities accord to and of their commitment to the promotion and facilitation and retention of Foreign Direct Investment.

The participants commended the measures and practices adopted by Sri Lanka and went on to add that some of these measures are unique features adopted by an Investment Promotion Agency (IPA) of a developing country that are worth emulating by other member nations in the pursuit of attracting FDI under severe competitive conditions. Kulasekera emphasized that the investor facilitation that reflects the national culture of the host country, with a very distinctive local flavour is the key for the success for promoting and retaining FDI, to any country under the current economic and financial crisis.