BOI launching ‘strategic actions’ to add to SL’s attractiveness as investment destination

The Interview:

By Lynn Ockersz

The BOI is in the process of launching ‘strategic actions’ to add to Sri Lanka’s attractiveness as a top international investment destination. In keeping with this broad aim, the BOI is taking a lead role in setting up export processing zones with all pre-clearances, so that investors experience minimum hassle, besides paving the way for increased ease of doing business, in addition to initiating paperless documentation procedures to facilitate import and export activities, among other measures, BOI Chairman Sanjaya Mohottala said.

However, while pointing out that the BOI has “not got its fair share of the FDI pie” over the years, the BOI Chairman said in an interview with The Island Financial Review that ‘It’s time for the BOI to course correct, not only where FDI is concerned, but also when it comes to quality jobs, higher value addition and inclusive growth, so that a comprehensive impact is generated. ‘

As the Head of the BOI in which main directions do you hope to develop the institution?

The BOI is the country’s apex agency for attracting FDI into Sri Lanka. It plays a primary role in providing direction for the economy of the country, under the direct purview of His Excellency the President. As the apex investment promotion agency, it must compete with over 1,000 international investment promotion agencies for a global FDI pool that has dipped by 40%. Remaining equally competitive with these other agencies therefore to global investors against this backdrop is a challenging task. We govern ourselves with the core principles of ensuring the medium to long term policy framework remains competitive and relevant and that it is infused with a strong public private partnership, as we actively canvas and convince investors to lay their stake in Sri Lanka. We have seen how compelling examples of transformations such as Investindia have experienced over the recent past and are encouraged by the results these campaigns have yielded. Using these examples, we have also launched some strategic actions recently. The recently concluded Sri Lanka investment forum (SLIF 2021), which was facilitated to optimise opportunity for the country by providing first-hand experience to international investors on what Sri Lanka has to offer, taking a lead role in setting up export processing zones with all pre-clearances, so that investors experience minimal hassle and increased ease of doing business, and launching paperless documentation procedures to facilitate our import and export activities have all been activated in line with that direction.

Are BOI companies facing any special issues currently? If so, what are they?

 Companies that fall under the purview of the BOI contribute to 85% of Sri Lanka’s industrial exports and a significant portion of Services exports. It is a challenging time for all of us given that tourism receipts have not brought in revenue to the country in the past 2 ½ years. The pandemic has also challenged the realisation of FDI as investor nations also deal with the situation in their home front. Exports therefore are critical for Sri Lanka, and the BOI is supporting these companies not only because it is our duty to do so, but also, because we consider it a national task that everyone must work together on. In this regard, we have worked with the Occupational Health Directorate at MOH, along with industries, to develop guidelines for companies to operate safely and have also administered vaccines to almost all the entities who are supporting this national cause to keep everyone safe and healthy. In addition, close to 5,000 ICC beds are currently being maintained by JAAF and BOI, in collaboration with FTZMA, to ensure that employees are well looked after. All of this has aided the current attendance turnout to hover around 80%.

What are your main suggestions on reviving the local economy amid the current constraints posed by the pandemic?

Our main task is to support both propping up the economy and economic activity to stay afloat. Our priority of course is the safety of the people, which is why we doubled down earlier this year to vaccinate all zonal and non-zonal based employees. Even though we have to deal with the pandemic currently, we must also use this time to lay the foundation for a post covid Sri Lanka. Which is why we have established two zones in the recent past – one in Hambantota for Pharmaceuticals, and the other in Eravur for Textiles and Apparel. We have also been able to secure and invite strategic investments like HCL to the country. These and several other initiatives have enabled us to secure USD 2.3bn worth of investment approvals and USD 1.4bn capital formation, half of which was FDI – all in 2020. We need to now accelerate this pace and introduce investments into the funnel faster.

How effective has the BOI been over the years in bringing in FDI?

The BOI was one of the first organisations of its kind that was set up 40 years ago to capitalise on the benefits of an open economy. And while the ambition was directed correctly, over the years, other BOI equivalent agencies have overtaken Sri Lanka, and we have not got our fair share of the FDI pie. It’s time to course correct, not only where FDI is concerned, but also, when it comes to quality jobs, higher value additions and inclusive growth, so that a comprehensive positive impact is generated.