Cabinet approves new agency to evaluate foreign-funded projects

The Cabinet of Ministers at its meeting on Monday has cleared a mechanism to assess proposals involving foreign exchange and energy projects.

The proposal to this effect submitted by Prime Minister Mahinda Rajapaksa to appoint a committee headed by the Secretary to the Prime Minister comprising four other Ministerial Secretaries was approved by the Cabinet of Ministers at its meeting held on Monday.

Accordingly, friendly States, international suppliers, and local private sector forward various sorts of bilateral concessionary loans, energy supplies, and sector-related resolutions, as remedies to the foreign exchange crisis prevailing within the country.

It was pointed out that certain proposals in relation to the energy industry are materialised in effectively amidst the foreign exchange crisis with no specific provisions in place under the existing methodologies. 

Therefore, the establishment of the new mechanism will fast-track to assess the concurrent importance and approve without further delay to attract foreign investments.

At a time when multiple and more important crises are to be solved, the need for the Cabinet of Ministers to support the Prime Minister to set up another entity citing ‘to fast-track foreign exchange inflow’ is highly untenable, especially when the Board of Investment (BOI) is in existence. BOI is the apex body responsible for the promotion, coordination, and facilitation of foreign direct and local investment.