In a startling disclosure the Chairman of Board of Investment Dinesh Weerakkoddy said that over USD 4 billion worth of BOI approved projects are on hold due to red tape.
He said that since he took over the BOI many agreements were signed with existing investors and new companies to start new business ventures and increase capacity in existing one.
“I am ASHAMED, SAD and ANGRY to admit that over 90% of new projects that were signed up for the past 12 months could not get off the ground as they were unable to get approvals from several related ministries. The total values of these projects that await these approvals are around USD 4 billion.”
These projects include power sector generation, housing, mining, leisure and other sectors. Once an investor signs up with BOI they have to then get clearance from the Ministry of Lands to obtain space and then go to environmental authority, provincial councils and many other governmental institutions. He said that the investors are pushed from one Ministry to another and these also discourage them.
“This is a very serious issue and we have now discussed this matter with the President and a series of ‘follow up action’ subsequent to the BOI sign up are now being successfully implemented. This will bring tangible results for this issue.”
A highly respected corporate leader, Weerakkody who is also the Chairman of the Colombo Port City Economic Commission, said that due to the new legislature that was passed by Special Act in Parliament ‘doing business in the Port City’ is a smooth process and this is the reason many investments are taking place. The next landmark of the Colombo Port City would be the opening of the duty free complex operated by a Singaporean based company.
Shirajiv Sirimane