The end objective of the Economic Transformation Bill should be to enhance FDIs into the country thereby transforming Sri Lanka into a highly competitive, export-oriented country, said Minister of Labour Prof. Anil Jayantha Fernando during a meeting with the Free Trade Zone Manufacturers’ Association.
Both FTZMA and the Minister agreed that this bill needs to make a proper revision in order to create a conducive environment for investors to start up their business ventures that expect single window approach, facilitation services.
Chairman FTZMA, Dhammika Fernando, stated that the current Act in its current form will segregate the BOI and create a humongous white elephant, therefore the FTZMA urge to Restructure the BOI within by making it a truly and investment facilitation body and harmonize it with the other export promotion bodies such as the EDB, IDB, and Department of Commerce etc.
He urged that BOI should develop a strategic plan to implement these changes envisaged to support the government efforts bringing in a real economic renaissance.
FTZMA has urged the minister that the current corporate tax at 30% needs an urgent downward revision at least to be compatible with the service exports sector level.
FTZMA requested that the current corporate tax at 30% needs an urgent downward revision at least to be compatible with the service exports sector level. The Minister asked FTZMA to make proposals as to how BOI could be re-structured to further strengthen it to attract more FDIs into the country. FTZMA emphasized that FTAs should not be made in haphazard manner without having a “win-win” situation for signatory countries.
FTZMA has informed the Minister regarding the existing Waste disposal systems in the Zones and a monopolistic stance of a single cement company. The Minister said that the country needs an integrated Solid Waste Management (ISWM) mechanism that can be catered to a comprehensive waste prevention, recycling, composting and disposal program.
Minister said that current SVAT system needs to continue without abolishing it from 1 April 2025 until such time a robust and functional VAT refund mechanism is in place including an E- invoicing system.
Meanwhile, Plant Lipids Lanka has handed over a report on the pending Cabinet approval for granting “Approved Enterprise” status to companies which have been recommended by the BOI to import selected spices for value addition and re-export in converted form.
The post “Economic Transformation Bill vital to lure FDIs to country” appeared first on DailyNews.