Focus on PPP, BOO, BOOT, foreign investments | Daily News
Projects carried out on loans halted

Focus on PPP, BOO, BOOT, foreign investments

The government has decided not to obtain loans for any project implemented in the future, Co-Cabinet Spokesman Mass Media Minister Keheliya Rambukwella said.

According to the Minister, the government has decided to carry out all future projects as Public Private Partnership (PPP) Projects , Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT)

 projects and also as foreign investments.The Minister was speaking at the weekly Cabinet media briefing held yesterday at the Government Information Department.

“This decision had been taken after considering the massive debt burden of the government. The country’s public debt amounted to Rs 7.43 Trillion at the end of 2015 and it has been increased to 87 percent of the GDB. Government Debt to GDP in the country is expected to reach 92.50 percent by the end of this year. So if we obtain loans further debts will exceed 100 percent of gross domestic products (GDP). The country has experienced similar situations thrice during the eras of late President J.R. Jayewardene and former President Chandrika Kumaratunga. But we don’t want to lead the country towards such a situation,” the Minister said.

The Minister further said that the government has taken various decisions to save the country’s foreign exchange including the promotion of local production.

Meanwhile, the Cabinet approval has been granted to extend the period of validity of the regulation issued under section 22 of the foreign exchange act No. 12 of 2017 in regard to outflow of foreign exchange from the country. Approval of the Cabinet of Ministers was granted at the meeting held on June 24 this year for the issuance of a regulation valid for six months under Section 22 of the Foreign Exchange Act No. 12 of 2017 for imposing regulations for limitation of capital transactions causing flow of foreign exchange out of the country.

Accordingly, the regulation mentioned above has been imposed by the gazette notification dated July 2nd whereas its valid period is scheduled to end from January 1,2021. It is apparent the imposed period is likely to be extended from another six months.

The Cabinet of Ministers has approved the resolution submitted by the Prime Minister as Finance Minister to take necessary action regarding the matter.