Wednesday, 4 September 2013 00:25
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DNA MP claims new company to invest in project has been floated, no directors revealed
Another project liable for massive tax breaks under strategic development act, says opposition
Handunetti demands NSB gets Parliamentary approval for foreign borrowings
By Ashwin Hemmathagama
Our Lobby Correspondent
Heated debates ensued in Parliament yesterday over another Government move to pass another controversial project, this time in Trincomalee, under the Strategic Development Projects Act.
Opposition Members of Parliament demanded more information about the $ 4 billion or Rs. 520 billion project to develop infrastructure in Sampur in Trincomalee.
Democratic National Alliance MP Sunil Handunnetti charged that a new company, Sri Lanka Gateway Ltd., has been floated to invest $ 4 billion equal to Rs. 520 billion in the project. The directors of the company in question remain a mystery, the DNA MP said.
“Even though a company has been formed you are not disclosing the directors of this company in the respective Gazette notification 1819/3 of 15 July 2013. This is more like naming a baby but keeping the parents identity a secret,” Handunetti charged in Parliament.
He said given that projects under the Strategic Development Program enjoy extensive tax breaks for 25 years including the withholding taxes for foreign borrowings for the project, it is essential that the Government reveals the parties behind the venture.
Early this week Investment Promotion Minister Lakshman Yapa was quoted as saying Singapore Gateway, a Singapore based institution, will be investing $ 4 billion on various development projects in the Trincomalee district. They would set up a heavy industrial zone to provide infrastructure. Subsequently this facility on an 818 acre land site on 50 year lease would be given to Singaporean investors. Investments by Singapore firm to be on a staggered basis of $ 700 million within first year, followed by $ 1.3 billion and $ 2 billion thereafter.
However Handunetti charged that the Government was aware of the parties behind Sri Lanka Gateway (Pvt.) Ltd. “The Government has requested that 20 employees be hired to develop Sampur in Trincomalee. The company has also been exempted the equipment and material from value added taxes, nation building tax, CESS, and also the customs taxes for all main and sub-contractors,” Handunetti revealed.
He charged that the Government should behave in a more responsible manner.
“We don’t know anything about this company promising huge investments and thereby being exempt of contributing to Government tax revenue,” the DNA MP said.
Handunetti also demanded that the National Savings Bank obtains approval from Parliament for the proposed foreign borrowing.
