Sunday Dec 15, 2024
Sunday Dec 15, 2024
Friday, 16 December 2016 00:00 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
The Government has targeted attracting an ambitious $ 3 billion in Foreign Direct Investment (FDI) commitments with most to arrive in the first quarter of 2017, a top Minister said yesterday, insisting that the time had come “to take flight.”
“We are expecting around $ 3-$ 4 billion in investments in the areas of dairy, petroleum, energy and fisheries,” Finance Minister Ravi Karunanayake told reporters yesterday. 
The Minister reiterated his criticism of the previous Government led by President Mahinda Rajapaksa saying that loans were obtained for public investment “but called FDIs.” He stressed that the coalition Government would quantify genuine FDIs.
“You will see a huge increase in investments. On 7, 8, 9 and 10 January 2017 you will see how 50 major investments will commence,” said Karunanayake. “We are working tirelessly to rectify and put the system in place for the country to grow at a rapid pace.”
“All this time we worked without a sound but we will show the outcome of the vigorous work that we have done so far. It took some time to get formal approvals but now I guess it is time to take flight.”
The Government has already announced plans to lease 80% of the Hambantota Port to State-run China Merchants Holdings for $ 1.1 billion with the handover likely to take place in January to coincide with the second anniversary of President Maithripala Sirisena’s inauguration.
Referring to the non-strategic enterprises and loan repayment plans of the Government, Karunanayake said it intended to pay off high interest debts immediately so that the balance would be used to build reserves as well as to insulate the Sri Lankan economy from growing global vulnerabilities exacerbated by the US Federal Reserve planning to hike rates three times in 2017.
“The first amount of money came into the country today and the next will come in another three months,” he claimed. “Through this the debt burden on the public will be reduced completely. What we have done is ensure that the high interest rates are swapped for low interest rates by doing various financially acceptable prudent actions. Thereby the country’s debt servicing will be reduced significantly through capital amortisation,” he added.
According to the Minister, around $ 760 million worth of debt with an 8% interest rate needs to be serviced, although he insisted they were not obtained from one country.
