Rules of State institutions discourage FDI

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The rules and regulations of many State institutions discourage the creation of new industries and the running of existing industries. Thus, the country has lost many foreign investors, Secretary to the Ministry of Industry, General Daya Ratnayake said.

He was speaking at a progress review meeting of the Ministry of Industry at the President’s House in Colombo, yesterday (16).

At the meeting, President Gotabaya Rajapaksa had pointed out that opportunities in the industrial sector should be expanded for local and foreign investors, in a bid to earn foreign exchange expeditiously.

Long-standing rules and regulations are a serious barrier to investment. President Rajapaksa said a great deal of work needs to be done to promote the industrial sector, by adopting new strategies to encourage investment.

The President underlined the need to identify industries that can earn foreign exchange and to expedite the preparation of future measures for their development. Challenges faced by industrialists in the foreign exchange crisis were discussed at length. The President requested the officials to look into the possibility of using the foreign exchange earned from the export industry directly for the import of raw materials.