FDIs to reach 1.5% of 2017 GDP

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By 2017-07-17

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By Mario Andree

Highlighting the need to enhance the effectiveness of the Board of Investment (BOI) of Sri Lanka, the World Bank predicts FDI inflows to reach 1.5 per cent of the Gross Domestic Product this year.
To totally revamp the country's investment promotion agency, the Government has instructed the Chairman and Board of Directors of the BOI to tender their resignations.
The World Bank's latest development update on Sri Lanka, highlighted that FDI inflows to the country had been below 1 per cent of GDP.

According to the report the World Bank's projects FDI inflows to reach 1.5 per cent of GDP this year and increase to 1.8 per cent during 1.8 per cent.

Emphasizing on the need to enhance the effectiveness and strengthening of the investment attraction capabilities of the BOI, the World Bank said that it was important to address regulatory barriers to FDIs.

The World Bank also highlighted the importance of coordination between investment policy and the trade policy.
According to the World Bank the new performance-based incentive regime, rewarding actual rather than intended investment, included in the draft Inland Revenue Act is......expected to be more efficient at attracting FDI than the current regime based on tax holidays, which has not attracted sufficient FDI and benefitted mainly firms in the non-tradable service sector with limited impact on employment.

Recently, the Minister for Development Strategies and International Trade Malik Samarawickrema launched a roadmap to improve the investment climate titled 'Sri Lanka Means Business'.
The government established eight teams to boost investment to the country, with specific focus on several key areas to improve Sri Lanka's 'Ease of doing business ranking'.

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