Sri Lanka to roll out new investment law to attract more FDI, investors
By: Staff Writer
Colombo (LNW): Sri Lanka government is now in the process of updating and modifying Sri Lanka’s existing legislative framework in order to make the country an investment-friendly destination. State Minister of Investment Promotion Dilum Amunugama proclaimed.
It is expected to introduce new investment laws by the first quarter of 2024, without affecting other government entities’ current legal frameworks, he revealed.
Additionally, foreign investors do not receive their investment rights when they enter this country. As a solution, we must update our legislative framework to ensure that their investment rights are protected.
A seven-member committee consisting of Director Generals of government institutions has already been appointed to look into the existing laws that restrict investments.
Getting into a resilient mode after navigating severe economic turbulence, Sri Lanka is doubling down on its efforts to attract foreign direct investment and investors by rolling out a landmark investment law designed “to eliminate the existing complexities.”
The new investment law, the minister said, will ensure the rights of foreign investors to make Sri Lanka an investment-friendly destination.
To be unveiled by the first quarter of 2024, the game-changing law will feature several incentives for foreign investors. Also on the cards is an initiative to give free land ownership rights to foreign investors, he said.
Part of the new measures is the setting up of an Investor Facilitation Centre to provide comprehensive facilities, including addressing investor issues.
It will operate in close coordination with various government agencies. The centre would serve as a platform for investors to swiftly address their current challenges. Specific investment zones with the potential to attract investments to Sri Lanka have also been identified, according to the minister.
State minister Amunugama said the country of 24 million people is “back on track” after recovering from an economic crisis of unprecedented scale as it continues to make remarkable headway in restructuring its foreign debts as well as the revamping of several public institutions.
The BOI has approved investments of 682 million US dollars from January to July, he added.
Despite the ongoing economic crisis, the BOI has been able to attract Foreign Direct Investments of 1.75 billion US dollars exceeding the targeted amount of 1 billion US dollars for 2022, he mentioned.
The FDI target set by the country’s Board of Investments (BOI) for 2023 is $1.5 billion and it had already realized in Q1 of 2023 $ 211 million.