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Sri Lanka attracts over USD 1 billion FDIs in 1Q24: Minister Dilum Amunugama

By: Staff Writer

June 04, Colombo (LNW): In the wake of government’s decision to dissolve the Board of Investment in accordance with economic transformation act, State Minister for Investment Promotion, Dilum Amunugama says the Sri Lanka has attracted over USD 1 billion Foreign Direct Investments (FDI) to the country in the first quarter of 2024.

“This fulfills our first quarter target and we hope to touch the USD 4 billion investment target by year end,” he said during conversations with investors who signed investment agreements with the Board of Investment in the first quarter of this year and followed up on their business progress.

The investment objective of one billion dollars was met in the first quarter of this year, with the Adani Solar project investing USD 800 million and other enterprises contracting for another USD 320 million with the Board of Investment.

However these FDI’s are still to be realized as Adani Solar power project Sri Lankan officials said adding that the project has been facing some delays as a Cabinet Appointed Negotiation Committee (CANC) raising concerns over the project components including tariff.

Therefore accounting the FDI in the pipeline which is yet to be realized and publishing it as first quarter foreign investment attracted by Sri Lanka was an inaccurate statement, several high officials said.

The progress review meeting was primarily arranged to analyze the progress of signed projects, resolve any outstanding issues, and provide necessary support to projects signed in the first quarter of 2024.

Another main accounting practice of the BOI was the inclusion of foreign loans to Direct Investment Enterprises in annual FDI while publicising dollar earnings of existing free trade zone enterprises. This was against the proper accunting practices 

The New Economic Commission is to be set up under this act replacing BOI and its control over free trade zones will be consolidated under its purview.

Furthermore, control over trade zones under the Board of Investment and newly established trade zones will be consolidated under this commission.

The commission will be empowered to oversee economic activities and international trade and govern both existing and newly established trade zones, ensuring cohesive and effective management of economic initiatives and investment infrastructure.

However minister Amunugama highlighted that the BOI’s position will be aligned with worldwide marketing, and that current zones will stay under the BOI’s control, strengthening its role and preserving all employee rights.

Furthermore he stated that the statements made by all of the investors demonstrate that they were able to carry out their projects without issue. As a result, it serves as an excellent illustration of the Board of Investment’s efficiency.

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