Foreign Direct Investments (FDIs) which are picking up, will be around US$ 3 to 4 billion during the first half of next year, Finance Minister Ravi Karunanayake said during a media briefing at the Finance Ministry last week .
He said there will be around 50 foreign direct investments early next year in the dairy, fisheries, oil refinery, petroleum and energy sectors.
“Investment are now flowing into the country. Many which were at its approval stage during the year have been cleared for investment,” the minister said adding that agreements to the tune of US$ 1.6 billion were signed by the Board of Investment last year.
However, the number of projects that took off ground were less due to the time taken for approval and various procedures that had to be followed by investors.
The Minister accused the former government which borrowed money and used it as investments and then burdening the people with taxes to service loans.
“‘That trend was changed on January 8, last year and now there is transparency in all initiatives undertaken by the government,” Karunanayake said.
He said the former government pulled around Rs. 13 billion from the Central Bank prior to the election in January 2015. It is those who misused public funds during the former regime are the ones who are criticizing the present government it is selling land to foreigners.
“The government now has to pay for the loans borrowed by the former which turned out to be white elephants. The former president accuses the government for selling the assets to China when it was he who initiated many Chinese funded projects,” Karunanayake said. He said, the JVP accuses the government of selling 15,000 acres at Hambantota to China to set up a industrial zone, without knowing the facts. “We need a staggering amount of money to repay loans taken by the former government. We are leasing out land to ease the burden on people who have to pay the loans.”
“The government is taking steps to reduce corruption and take the country forward. The prices of rice have shot up with an artificial shortage created by those who carry out black markets. We will import rice to meet the need for around one and half months as a buffer stock to meet contingencies,” the minister said. He said, rice will be imported as droughts have been predicted during the first few months next year which could affect yield. Steps have been taken to release 1,10,000 tones of rice imported from Bangladesh. - LF