Posted on June 25th, 2019

Dr Sarath Obeysekara

There was a news about Colombo Dockyard which is a BOI company which generates much needed foreign currency ,has delivered a state of the art Cable Laying vessel for a Japanese customer .

Managing Director of the company stated that they are expecting an order to build a trailing suction hopper dredger for the Sri Lanka Land Reclamation and Development Corporation ( SLLRDC) . I am sure that the funds for the above job need to be allocated by the government of Sri Lanka ,either by borrowing or printing money .

 51% of the profit generated by the company will be pumped away by the Japanese Investor, and y will be taking out the money from the coffers of the treasury.

What the government should endeavor to do is to create a investment friendly atmosphere in Sri Lanka ,so that foreign companies places orders with Colombo Dockyard ,so that foreign currency flowsin to the country .

We have started a shipyard in Sri Lanka ,which is not a BOI company .has to obtain Temporary Import and Export permit ( TIEP) with much struggle going post to pillar from Ministry of Industries to Sri Lanka customs to undertake the a job for Maldives . Even after obtaining TIEP company has to give Bank Grantees to the Sri Lanka Customes for the estimated value of the custom duties for the material imported .This has caused an enormous cash flow problem for the company as the banks keeps funds in their coffers as security .Same company imported equipment for the shipyard and paid over 50 million. Custom duty .Company has failed to declare the value of design of the equipment to customs during clearing ,Customs received a petition and held an inquiry against the Company and slammed a 24 millon as penalty .

This a clear example of Sri Lankan Government how they try to promote the Ship/Boat Building Industry in the forefront .

Premiere keeps talking about taking the driving seat in investment promotion ,without studying the necessity to ease bureaucracy in Customs and Sri Lanka Treasury .

Premiere inaugurated a NES ( National Export Strategy ) which was earmarking to earn over 28 billion US $ by 2022!

Of course it was an unexpected drawback to NES after the Easter Sunday Attack ,but government should place themselves in a high gear mode to provide feacilities and ease the investments by changing current regulations in Customd and Sports so that foreign companies start coming in .

By looking at the current affairs in political landscape ,when HE and Premiere in a tug of war before the election , we should be wary of the ouctcome.

We need a dramatic change in political weather front  

 Dr Sarath Obeysekara

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