Sarath Obeysekera (A disgusted Investor )

BOI has released a paper in Jun 2016 called  STRUCTURED PROJECT PROPOSALS for investment with  a list of projects available in Sri Lanka for investors to mobilize various amounts of money ranging from 5 million Dollars to 100 million .Crown land in various part of the island is offered to investors to locate the project

For an example, lands in Kalpiitiya.Bentota, Trincomalee, and a Hambantota etc. are offered for investment in Tourism related projects.

It also says that land to be offered on long term basis but the duration is not indicated .It can be 30 years or 99 years .Depending on lease extent investor has to decide viability of the project.

BOI does not say all the facts related to approval process of leasing Crown Land .The need to go to Cabinet Subcommittee for initial approval etc. . . .

Again BOI says that Government Valuer decides the lease value of the land and the investors have no clue what so ever, how the Chief Valuer provides the valuation for the land  .

BOI and Sri Lanka Tourism should get valuations from the Chief Government Valuer and indicate approximate lease value depending the lease period.

Another problem faced by the investor is how long value takes to give the valuation (Valuation Department is so bureaucratic an understaffed and they take over six months to give a valuation)

With the FCID hovering around and breathing on their necks valuers are so careful to give a figure as they are feared that they may be called to clarify.

If the value is high investor will run away and if it low FCID may call him!

In one of the project FCID called even the chartered surveyor who carried out the land survey to testify!!

Investor cannot make a direct request t Government Valuer for a valuation. Request should be made by the State Agency who holds the Crown Land…

Investors have to carry out financial feasibility without knowing the value of the land .In an  area like Kalpitiya there are over 1000 Ha offered with no details of approximate land value and availability of power water etc.

Investor who comes to Sri Lanka will take one year to find out the details and when the BOI approval is granted after registering the company, Investor has to wait until Cabinet approves the project which may take another 6 -12 months .

Recently such proposal initiated by an Investor after spending many years has been turned down by the cabinet.

BOI should obtain valuation from the Government Valuer and publicize the figures beforehand and also indicate the time taken from initiation of the project to commencement of construction

We had bitter experience when we wanted to invest in a tourism related project in Galle Harbour

It took one years to submit the cabinet paper after SCARC approval and, another one year to carry out Environment Impact Assessment

Another six months to get Attorney Generals’ approval to sign the lease agreement. !

It took three years to sign the agreement and the Investor bolted away after signing complaining about the bureaucracy .Now we are trying to revive the project with another investor for the last six months and future is bleak.

There is no meaning to have Megapolis, BOI, and Sri Lanka Tourism, Centre for Strategic development etc. unless government clears all the obstacles detailed above.

First of all Government Chief Valuer position should be abolished and a Special Agency with a mandate from the Cabinet should be appointed to provide valuations for the lands depending on the amount of investment and the other tangible benefits like providing employment, amount of foreign currency to be earned within the project period, and the carbon foot print of the project.

Sarath Obeysekera

(A disgusted Investor )