‘More policy initiatives needed to attract FDI’

Sri Lanka had missed many opportunities to transform itself into a developed nation and there is a need for robust policy initiatives to improve the country’s investment climate to attract and retain FDI in Sri Lanka, Ravi Abeysuriya, Group Director, Candor said.

“Although the government has recognized this need, the political will, commitment and the speed at which policies are being implemented leave much to be desired. Most importantly, if Sri Lanka is to achieve this, changing the mindset of the public is also essential.”

Abeysuriya expressed these views at the recently concluded LAMUDI Re-Connect: Property 360 event held in Colombo.

According to Abeysuriya , limited fiscal space, tax-based funding by the government is not adequate to meet the pressing needs for infrastructure and it is important for the government to attract private investment for the provisioning of infrastructure through Public Private Partnerships (PPPs). Commenting on the country’s competitiveness and factors affecting investment decisions, Abeysuriya emphasised that it is essential to make necessary changes in regard to macroeconomic stability, inflation, exchange rates, fiscal deficit, public debt levels, doing business ranking and competitiveness to attract FDI.

Abeysuriya also noted that Sri Lanka needs to make infrastructure an attractive value proposition for FDI to flow especially into the real estate sector while taking immediate measures to create a low tax regime, consistent tax regulations and legal framework for enforcing contacts.

Sri Lanka needs to adopt consistent long term national development policy with strong commitment to woo FDI flows to Sri Lanka, Abeysuriya said adding that it is essential that these policies be implemented swiftly with consistency in order to attract higher levels of FDI to the country, particularly in the backdrop of relatively higher FDI inflows to emerging market economies such as India and Vietnam.