'BOI should create environment for business development'

Sri Lanka has the best environment for investment and doing business, Laugfs Holdings Chairman W.K.H. Wegapitiya said. He said the business environment was severely affected for several decades due to the battle against terrorism that impeded investment and stifled economic growth.

“Incentives have been provided for new entrepreneurs to start businesses and the SME sector to develop businesses,” Wegapitiya said.While recognising the opportunities and potential for business development in the country, Wegapitiya also underscored the importance of improving the work of the BOI to boost foreign direct investments and creating a better environment for businesses in the country.

The BOI should not be a one-stop shop, only in name, but should implement rules to create such an environment. Wegapitiya said that the proposed power tariff hike will have a major impact on the industrial sector and added that industrialists and entrepreneurs should face challenges instead of depending on subsidies.

“Korea, Japan and China developed their economies by going through difficult times,” Wegapitiya said.He said the private sector should be encouraged to generate energy for their ventures. Entrepreneurs should be allowed to develop mini hydro power plants and transmit it to their factories through the national grid.

Wegapitiya said that Laugfs will set up a LPG import terminal in Hambantota and added that the company is awaiting approval from the government for land to set up the terminal. “We had discussions on the proposal and hope to commence work on the project within the next two to three months,” he said.

Laugfs which ventured into the leisure sector will launch its first 88-room luxury resort in Chilaw in June. The four-star hotel will cater to the upmarket tourism sector and will provide jobs to around 150 youth in the area. The company will commence construction of its 110-roomed hotel in Passikudah shortly and plans to complete work on the project by 2015. The hotel will provide jobs to around 300 people in the area.“The hotel in Waskaduwa which comprises 250 rooms is in the designing stage and we hope to commence work on the project by August this year,” Wegapitiya said.

- LF