President refuses to accept BOI resignations

• Letter from Secretary to President states Rajapaksa has highest confidence in them, as they contribute effectively to promote foreign investments to the best interest of the country and help post-COVID economic transformation
• BOI says as of November, it has signed $ 2 b worth of investment approvals of which $ 760 m already invested
• Trade unions collective counters; wants Govt. to appoint a Chairman, Board of Directors, and Director General who have knowledge and vision to implement practical plans under President’s ‘Vistas of Prosperity and Splendour’ policy

The Board of Investment (BOI) said yesterday that President Gotabaya Rajapaksa had refused to accept the resignations of the Chairman and Board members of the Board of Investment (BOI) who tendered their resignations last week.

In a letter addressed individually to the Chairman and respective Board members, by Secretary to the President Dr. P.B. Jayasundera, further stated that the President wishes for them to continue services, as he has highest confidence in them, as they contribute effectively to promote foreign investments to the best interest of the country and help the post COVID economic transformation.

“As of November 2021, the BOI has signed $ 2 billion worth of investment approvals. During the first half of 2021 alone, $ 760 million has been invested in Sri Lanka, of which $ 400 million is FDI, in contrast to pre-pandemic 2019, where 113 new projects were approved and added to the pipeline, to the value of $ 1.1 billion, of which, the foreign component value was $ 400 million,” BOI said.

It added that in 2020, despite the pandemic and slowdown in investment decisions, 128 projects were approved with a value of $ 2.2 billion of which, the foreign investment component was $ 1.6 billion. In 2021, 117 new projects were approved to the value of $ 2 billion, of which $ 980 million is the foreign investment component. 

Through this, the overall investment pipeline has exceeded 2019 values, despite the pandemic continuing through 2020 and 2021. “Added to this, the year-to-date export value for BOI companies has also surpassed 2019 pre-pandemic levels,” BOI statement said.

In a related development the Collective Unions of Board of Investment responded to BOI’s original statement issued last week.

The Collective said the statement implied that the Chairman, the Director General and the Board of Directors resigned due to the fact that there is no opportunity to implement the strategic agenda to double the GDP in the next decade, creating a strong investment climate within the country. Further it was stated that this situation was created by some groups inside and outside of the BOI.

The Collective said the following in its statement.

But the real reason for this is that the Chairman, who has no administrative knowledge and no practical vision or plan, was unable to implement any successful program with the senior officers of the Board of Investment and its other employees. Although he repeatedly spoke of setting new investment plans and pursuing goals, he did not have the slightest ability to make them a reality, instead he conducted useless interviews trying to build his image. 

Rather making the internal and external changes that needed to attract more foreign direct investment, his option was to recruit outsiders with thumping salaries and privileges, setting the stage for them to outperform as international promoters.

It was revealed in the COPE meeting held recently, that the recruitments were made in violation of the recruitment procedure and misleading the Cabinet of Ministers. Many issues have arisen within the institution regarding the qualifications and knowledge of the new recruits.

At the same time, no significant FDI inflows or practical measures have been taken in the last two years. Accordingly, the entire staff of the Board of Investment of Sri Lanka, including all trade unions and senior executives, protested not against the implementation of the program of His Excellency the President, ‘Vistas for Prosperity and Splendour’ but against the malpractices and large-scale financial irregularities that impede the progress of the institution through the impractical and unsuccessful programs as mentioned above.

His Excellency the President, the Prime Minister and the Members of the Parliament were made aware about the situation by the entire staff of the institution. As a result, His Excellency the President has removed these officials from their posts. 

In order to make the ‘Vistas for Prosperity and Splendour’ a reality, all trade unions urge the Government to appoint a Chairman, Board of Directors, and a Director General who has the knowledge and a vision to implement practical plans.