Re-branding BOI to woo draw investors and increase FDI - Minister Lakshman Yapa Abeywardena

By Naalir Jamaldeen

"Through re-branding the BOI, the image of BOI can be built to international standard. We hope to provide information to investors through the BOI. Our website will be used to attract investment. Investment opportunities available in Sri Lanka and the changes taking places in the industrial sector will be added to the website from time to time", BOI sources said.

The Bandaranaike International Airport

A heavy industry

The Mahinda Rajapaksa International Airport in Mattala

Southern expressway

Women at work in a garment factory

A heavy industry in Biyagama export processing zone

A cottage industry

"We also hope to introduce a tax incentive scheme soon. Only then a large amount of FDI can be brought into the country.

"Regional development in the process of the country's development is vital. To take development to the villages was important to achieve sustainable development. We also hope to provide relief to medium scale projects specially for projects like agro processing and horticulture", the sources said.

The Investment Promotion Minister of Japan who visited Sri Lanka recently said that 90 percent of industries in Japan were small and medium scale industries.

They are keen to visit Sri Lanka and to commence industries. Such investors should be given opportunities, Investment Promotion Minister Lakshman Yapa Abeywardena said.

"Employment generation to youth is also one of the areas the BOI is paying attention to. We have the responsibility to address the unemployment problem among youth", the Minister said. Industries located in unsuitable locations in the cities were taken to villages, congestion in cities can be prevented while also providing jobs to rural youth", the Minister said.

"Investors who have invested in Sri Lanka are aware of the benefits of the country.

They are keen to make their second investments in Sri Lanka. We hope to take such investments to the village. We also plant to re-start the non-functional factories", he said.

Setting up of of regional zones come under the re-branding of BOI. The capable workforce in the region will be given suitable employment while utilising the resources available in the region.

Our employable workforce is 8.5 million. Special arrangements are needed to employ them ", he said.

The BOI also plans to introduce an on- line visa facilitation system. The Government plans to improve the BOI into Asia's prominent investment promotion agency. Sri Lanka will be developed as a destination famous for tourism and related activities such as hotel, duty free shops.

Apparel exports have increased by a considerable level. We provide all facilities to improve the apparel industry while providing enough incentives to investors. The industrial sector is to be expanded to villages. At least five projects will be implemented in each district and with this mechanism there will arise a way to make use of resources available in the villages while providing employment to rural youth,.

"Infrastructure facilities including factory buildings will be given to investors willing to invest in villages", he said.

He said that a free trade agreement will also be signed with China soon. When the agreement come into effect , export items to China will be given a 100 percent tax relief.

"As the Minister responsible for investment promotion I have taken steps to bring more foreign investment to the country. Four special Departments such as Investment Promotion Department, Application Evaluating Department, Project Implementing Department and Monitoring Department have been set up inside the Board of Investment (BOI) to facilitate local and foreign investment. These Departments will have direct dealings with investors.

The newly set up Departments will play a pivotal role to attract and provide facilities for foreign investments. The new arrangement will increase efficiency and productivity of the BOI by many folds. These Departments will functional from this month. We also formulated a mechanism to prevent inconvenience to local and foreign investors in the investment process", Minister Abeywardena said.

"We have an IT based process. All activities of the BOI have been modernised as in developed countries. At any time investors can get information of investment opportunities available in Sri Lanka. An on- line tracking system will also be introduced by the BOI for the convenience of investors.

Through this service investors can easily find out at what process level his application is. Investors can check the progress of his application by submitting to final approval", the Minister said. "We plan to give a link even to investors over the tracking system. We hope to build a mutual relationship with investors. Steps will also be taken to develop connections with line Agencies", he said.

Besides, Minister Abeywardena said that checking will be carried out whether the imported goods were suitable for the local market and this arrangement will help to prevent unwanted goods from entering to local market .

He said the BOI plans to issue privilege cards to the best investors. Three types of cards such as Gold, Silver and Bronze will be presented to best investors depending on their investment capacity.

These cards will give investors ample facilities and help them get done their works without delay.

"Two information counters will be opened at the Bandaranaike International Airport, Katunayaka and the Mahinda Rajapaksa International Airport Mattala to provide investment related information to foreign investors", he said.

He said that the Government has succeeded in reducing unemployment in the country. Due to various moves taken by the Government the unemployment ratio has decreased to 4.2 percent. Minister Abeywardena said that over 70 percent infrastructure development work across the country was over now. A major portion of road development is over now. Roads which link the cities with villages are also being developed.

"There is a plan when a large amount of money is invested on infrastructure development, we plan to introduce various programs for investors. There also must be a a plan as to how long it will take to reap the profits from investment. Only then will the real outcome from the investment be obtained. Being the BOI, we can facing whatever situation that arises in the industrial sector. If infrastructure facilities are developed in the villages, local and foreign investors will make more investment in villages providing ample benefit to the village community", Minister Abeywardena said.

Plans are afoot to set up a special investigation unit in the BOI. This unit will function from September 01, he said. "Every year we receive nearly 35 complaints about various factories. After the opening of the new unit, complaints will be forwarded to it for action", he said.

After the elimination of terrorism Foreign Direct Investments (FDI) has increased by a considerable level. We hope to receive US$ 5,000 million FDI by the end of 2016, " Minister Abeywardena said.

"We plan to set up Free Trade Zones at suitable locations across the country. These zones will be set up jointly with developed countries.

Moves are underway to enter into a free trade agreement with China. Sri Lanka will receive a tax free market for its goods which are exported to China. This facility will be important to attract more foreign investors.

There is a close link between FDIs and market opportunities. Vietnam's and Sri Lanka's export volume was the same in 1990. Vietnam has signed FDI agreements with a large number of countries from 1990 upto now. It has signed agreements with Asian countries, USA, China, Japan, South Korea, New Zealand, Australia and India", the Minister said.

"We plan to conduct skills development programs for labourers. The labour force should be trained to work in the industrial sector", the Minister said. "We understand the necessity of providing tax relief to investors. Developed countries provide tax relief to investors. If we fail to give tax relief to investors, we will not attract foreign investment. We pay special attention to provide tax relief to investors",he said.

"We need new locations to set up industrial zones. Such zones can't be set up everywhere as social problems may arise. Suitable zones should be identified to prevent such incidents. Based on the concept we have drafted investment plans. We hope to provide sufficient facilities to investors to make investment easily", Minister Abeywardena said.