5 October 2016 12:02 am
As Sri Lanka is nowhere near to quenching its thirst for investment, the country’s apex investment promotion agency yesterday warned “dooms day” for the nation if authorities fail to establish consistent macro-economic policies.
“In the case of ease of doing business and the whole process of investment facilitation, the macroeconomic policies will have to be put right, if not the dooms day is near for all of us,” said BOI Chairman Upul Jayasuriya in a hard hitting talk, where the reality of the country’s investment climate was discussed. “Issues such as transparency, rule of law and ethics, and the absence of such policies in the right direction would mean we are all heading for disaster,” he told a forum in Colombo facilitated by the Sri Lanka – Italy Business Council.
However, he was quick to add that the BOI is in the “process of learning” and is determined to do what it takes to “put things right”. In doing so, it was said that the BOI will go through the issues of each and every investor and make the necessary changes. Acknowledging that the majority are “hell bent” over attracting investments to Sri Lanka, Jayasuriya implied that unlike in the previous years, the power vested to the BOI will be fully exercised in the immediate future to facilitate a conducive investment climate.
“We have the power to be the regulators,” he said referring to the Section 17 Agreement.
“The BOI has so much power, but we have not used it to move in the right direction. We now will understand and exercise the powers for the betterment of the investment climate of this country, for the betterment of the investors and investments.”
Furthermore, stressing the need for rule of law, he warned the absence of this key element will drive away any potential investor from venturing.
“No one is willing to come risk his money in a country where rule of law is absent. This is what we expect,” asserted the BOI chief.
He went on to say that expected is also transparency, not only from administrators and government officials, but also from investors, who, he stressed must come “clean” with their intentions. In instances where business entities are involved in practices frowned upon by the civil society, Jayasuriya said that authorities must name and shame such establishments as the public has the right to be aware of such incidents.
“We need to be strong enough to deal with them and take appropriate action. We shall not hesitate to do that.”
The Board of Investment (BOI) yesterday said measures are being taken to extend the 5-year visa for foreign investors and their senior employees to accommodate longer stays.
Under the current policy, directors and shareholders of BOI companies are given only a 2-year visa.
BOI Chairman Upul Jayasuriya pointed out that the 5-year visa facility will be extended to those who would invest a minimum of US $ 500,000 in the island nation.
“The government is moving a step further. We have just started the process and will inform the business community no sooner we have a clear policy in this regard,” said Jayasuriya.
However, although the current BOI policy is to offer 2- year business visa, in practice, only the one year visa is extended. It is learnt that foreign investors and their employees have to undergo a cumbersome process to renew their visas annually.
“This is a real issue”, pointed out Embassy of Italy in Sri Lanka Charge d’Affairs A.I. Dr. Giandomenico Milano.
“I know people in Sri Lanka who have been here for over 30 years, and every year they have to renew the visa. This is a complaint we hear very often,” he shared. (SAA)