Govt. decides to attract foreign investments instead of loans

• Joint ventures such as BOO, BOT, BOOT or PPP to be encouraged

By Sandun A. Jayasekera

The Cabinet has taken a policy decision not to obtain loans from global financial establishments, countries or international banks hereafter but to give incentives for foreign investments such as joint ventures, BOO, BOT, PPP or BOOT projects, Cabinet spokesman Keheliya Rambukwella said yesterday.   

Addressing the media via ZOOM app, Minister Rambukwella while admitting that the Government had to service a huge debt parcel amounting to about US$ 4 billion up to 2025 annually, said the Government has taken all measures to attract foreign investment as Built Operate and Owned (BOO), Built Operate and Transfer (BOT), Built Operate Owned and Transfer or Public Private Partnership (PPP) projects.   
“The economy is in dire straits as a direct result of the unrestricted and shortsighted access to foreign commercial loans with high interest rates and uncontrolled imports by the yahapalana government. I believe that the worst and most damaging part of the open market economy adopted since 1977 was played during the 2015-2019 period,” Minister Rambukwella stressed.   

The import control regulations adopted by the Government in  November also was a direct consequence to minimise the ill-effects of the debt trap set by the previous regime, he added.   

Accordingly, the Cabinet on Monday (30) decided to further extend the period of validity of the regulation issued under section 22 of the Foreign Exchange Act No. 12 of 2017 with regard to outflow of foreign exchange from the country, by another 06 months.   Approval was also granted by the Cabinet to extend the tenure of the committee appointed to submit recommendations to make the state banking system more efficient and productive by another three months, to strengthen the national economy.   The proposals had been made by Prime Minister Mahinda Rajapaksa as the Minister of Finance. 

• The period of validity  of the regulation issued under Foreign Exchange Act  No. 12 of 2017 with regard to outflow of foreign exchange from the  country, to be extended by another 06 months