Agreements with Japanese banks to promote investments

By Lalin Fernandopulle

The Government hopes to attract Foreign Direct Investments (FDI) worth US$ 5 billion this year. The target can be met through hard work. However, Sri Lanka will definitely receive FDIs worth US$ 4 billion this year, Investment Promotion Minister Lakshman Yapa Abeywardena told the media last week.

During a recent visit to Japan by Minister Abeywardene and Board of Investment (BOI) officials, two MoUs were signed with Japan’s Mitsubishi and Mizuho line banks to promote investments. The Minister also held discussions with the management of Mitsubishi Bank. The MoUs were a follow up of the Japanese Prime Minister’s visit to Sri Lanka recently.

The number of tourist arrivals had increased by 22.4 percent. There has been a 144 percent increase in the number of tourist arrival from China, 48 percent from Russia and 170,000 from India, the Minister said.

The Minister said that the Government has completed the supply of electricity to 99 percent of the population. An investment zone will be set up in Puttalam and a coal power plant will be set up in Sampur.

“We held two conferences in Japan in Osaka and Tokyo under the theme, ‘Investment Promotion Mission in Japan’. We held discussions with various top-ranking business entities and investors in Japan. Mitsubishi and Mizuho Banks introduced us to their customers,” he said.

“One-on-one discussions were held with members of the Japan Auto Parts Association (JAPA), Japan Electronic and Information Industries Association (JEITA), Chamber of Commerce Osaka, Japan External Trade Organisation (JETRO), Sharp, Yanmar and Japan Bank of International Co-operation (JBIC). “We also discussed about various other investment opportunities in Sri Lanka,” Minister Abeywardena said.

He said that the NMVL Company will launch a hotel project in Delft island. The hotel will be built on 48 acres of land with an investment of Rs. 1 billion. The company will also take steps to develop the tourism sector in the island. Minister Abeywardena said that 300 industries will be taken to villages.

The reduction of electricity tariff by 25 percent will be a boon for the industrial sector.