No approval for FDIs hurting local industries

By Mario Andree

At a time when Sri Lanka is focusing to develop its economy through increased Foreign Direct Investments (FDI) and exports, President Maithripala Sirisena has issued instructions to the investment promotion agency to refrain from approving investments challenging local businesses.

The Government hopes to attract more than US$ 2.5 billion worth of FDI during this year, to propel economic growth after the country managed to post only a 3.7 per cent growth during last year, shattering predictions by local and international agencies.
According to the Presidential Media Unit, President Sirisena has assured local entrepreneurs that FDIs would not be allowed at the cost of local industries.

According to him, strengthening local industries were crucial to provide benefits of economic growth to the masses.
Highlighting the importance of protecting local industries, he instructed the self proclaimed ‘One-Stop-Shop’, the Board of Investment (BOI) to refrain from allowing FDIs which could pose challenges to local industries.
Several self-proclaimed patriotic businessman have been complaining of challenges due to the entry of foreign investors to some of the industrial segments.

According to them, local entrepreneurs were facing difficulties not only due to lack of State support but the enormous benefits given to foreigners to start their businesses in the country.
Multichemi Group of Companies and Natures Beauty Creations Chairman and Managing Director, Samantha Kumarasinghe last December stated that the present regime was turning a blind eye to concerns and pretended to listen to the people.
“The present regime pretends to listen to the people, but does the right opposite”, he said.

The Government also understanding the dire need to increase FDI in July last year, introduced a road map titled ‘Sri Lanka Means Business’ outlining the strategic direction it was taking to improve the ‘Ease of Doing Business’ ranking.

Last week, Prime Minister Ranil Wickramasinghe attended an investor forum in Singapore attempting to lure FDIs and other sources of foreign investments to the country, promising a bright future and results of policy initiatives taken by the Government.
In 2017, FDIs to Sri Lanka doubled to US$ 1.63 billion from US$ 802 billion a year ago, reaching a recent time high.

The Government also understanding the dire need to increase FDI in July last year, introduced a road map titled ‘Sri Lanka Means Business’ outlining the strategic direction it was taking to improve the ‘Ease of Doing Business’ ranking.
Last week, Prime Minister Ranil Wickremesinghe attended an investor forum in Singapore attempting to lure FDIs and other sources of foreign investments to the country, promising a bright future and results of policy initiatives taken by the Government.
In 2017, FDIs to Sri Lanka doubled to US$ 1.63 billion from US$ 802 billion a year ago, reaching a recent time high.