Tuesday, 18 May 2021 00:12

BOI goes off target in its mission of attracting FDIs Featured

The Board of Investment (BOI) is now completely out of target in attracting Foreign Direct Investment confining its operations to encourage BOI enterprises to carry out their businesses, economic experts warned

BOI should be in the forefront of business attraction and supply chain management and need to be ready to react quickly to these challenges, they pointed out.

Indicating this stance of deviation from its mission, BOI Chairman Sanjaya Mohottala said in a statement that BOI enterprises have been encouraged to continue operations, while strictly adhering to the guidelines issued by the Ministry of Health.

BOI enterprises mainly apparel factories hit by Covid-19 are in a difficulty to continue their operations and they need government's assistance to over come the present challenges quickly and not the encouragement of the BOI, heads of industrial ventures at free trade zones complained.

The travel restrictions will not cause any inconvenience to the cargo movements and logistic facilities. Exports of the companies will continue unabated amidst travel restrictions,”Mohottala added..

He stressed the need of continuing the manufacturing process as a national responsibility, despite the current COVID-19 situation in the country.

Heads of several BOI enterprises noted that they need workers to carry out factory manufacturing process and no point in giving encouragement to us and th e existing cargo and logistic facilities were secondary things .

This stance of the BOI seems an indication of deviating from its prime task of promoting and attracting Foreign Direct Investment into the country, several economic experts said .

They added that the local investment promotion agency has displayed its incapability and inefficiency in the task given to it during the past several yearsut.

BOI’s failure to attract FDI in to the country has been high lighted by Presidential secretary Dr. P.B. Jayasundera when he was holding the post of Treasury secretary During President Mahinda Rajapaksa’s regime.

He has taken measures to restructure the BOI in 2011 but since then not a single government has taken any action to introduce reforms to revitalise the the investment promotion agency they pointed out.

Foreign Direct Investments (FDIs) to BOI companies, including loans, decreased by 42.2 per cent to US dollars 687.0 million in 2020, compared to US dollars 1,188.7 million recorded in 2019.

The total value of projects approved by the BOI in 2020, under Sections 16 and 17 of the Board of Investment (BOI) Act No. 4 of 1978, is estimated at Rs. 406.3 billion depicting a contraction of 91.4 per cent compared to 2019, Central Bank data showed.

 

 

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