Friday, 31st October 2014
Minister complains as BoI forecasts govt. target would be missed
By Mario Andree
Ceylon Finance Today: On the way to reach US$ 2 billion foreign direct investment this year, Sri Lanka received US$ 1.5 billion during the first 10 months of this year surpassing last year's 12-month achievement of US$ 1.39 billion.
Despite failing to achieve targeted FDI goals during the last two years, falling short by US$ 160 million and US$ 610 million to achieve targets of US$ 1.5 billion and US$ 2 billion in 2012 and 2013 respectively, Minister of Investment Promotion Lakshman Yapa Abeywardena told journalists in Colombo that the country had received approximately US$ 1.5 billion.
According to him the country's investment promotion agency, the Board of Investment (BoI), would be able to receive the balance US$ 500 million during the next two months to achieve this year's revise target of US$ 2 billion.
The original target was US$ 2.5 billion.
The government is anticipating more than US$ 5 billion in FDIs in 2016, a necessity to sustain high economic growth, and achieve a US$ 100 billion economy.
However, Minister Abeywardena said the economy may fall short of this target by around US$ 1 billon, with the BoI projecting a FDI inflow of US$ 4 billion in 2016.
"The government has taken some decisions that have made it difficult to attract investment. The new land law was one of them," the minister said.
Many investors and experts highlighting the importance of FDI and the interest of expatriates, warned that the land law, rule of law, governance and transparency issues prevailing in the country were deterring investors.
