BY SULOCHANA RAMIAH MOHAN
Investors attending the Jaffna Investors Forum (JIF) held Monday (22) were perturbed when they were informed at the panel discussion that any projects undertaken in the North would be allowed 30 years leasing, only of the land.
It is said local politicians in the North had been quoting a range of land leasing arrangements; between 29 years to 35 years, leaving the investors shocked beyond words.
Flabbergasted over this 30 years lease policy, and the lack of time the Board of Investment (BoI) grants, investors attending the forum had questioned the officials present ‘why not 99 years leasing as is given to other projects by the government in the South’.
The main investors warned the officials, “If you can’t change the policies, then don’t expect us to bring investors and we will direct them to other countries.”
They asked whether the BoI could take responsibility or be accountable for; if they happen to overrun the time frame for whatever the reason if there is a delay by them to which there was ‘no’ response from the panel.
One of the investors who intend to bring USD 1.4 billion project to the North revealed that while submitting an application there is a tax holiday granted and at the initial stages too, approval of the tax holiday is granted but when the final offer is submitted by the investor there is no tax holidays. “Nobody wanted to intervene and take decision and confront the BoI Chairman.”
He also recalled that he has been having another project in hand for the past six years, and he is still unable to get the final clearance but the BoI wants the investors to sign the agreement however.
One investor pointed out thus: “Why should we sign and pay for an agreement when they are not willing to solve our problems. They cannot take responsibility for the rest of the initiatives but are prepared to fine us if the project is delayed. We are accountable for our flaws, but for the BoI flaws, there is no accountability. Is there a law to sue them if they flout? We don’t know.”
“If you open your mouth, it would only reveal your ignorance” and asked whether “these policy matters could be rectified and attended to before even thinking for calling the investors to Sri Lanka”, one of them queried.
They urged to make the investments projects more attractive to the investors and guarantee assurance and security for their investments.
“One of them said its 20 years of leasing permitted while the other said it can go up to 30 years of leasing while the project could go for nearly 15 years, and it is not bankable if granted only 30 years of leasing.”
Investors who were in Jaffna knowing the geography of the Northern Peninsula said most of the land they have earmarked are uninhibited and asked “what’s the big deal in granting 99 years leasing after all its government land and not anyone’s private property”.
The one-day JIF organized by the Governor of the Northern Province Reginald Cooray was well attended by the invitees despite the major players; President Sirisena, Prime Minister Ranil Wickremesinghe and the Northern Province Chief Minister C. V. Wigneswaran were absent.
Governor Reginald Cooray who took the painstaking assignment to organize the event was also clueless on the policies that are governing the North.
One of the investors who intend to bring USD 1.4 investment project to the North asked the officials present at the JIF mainly the BoI whether they could give an assurance of security and guarantee their investments because the BoI has let them down terribly in the past.
It was noted that one investor who wanted to start a saltern plant has undergone immense trouble for the last three years in acquiring land in Jaffna for the project.
He told the panel he is still pushed from pillar to post and there has been no outcome so far.
The investors humbly asked the panel to get their policies right before inviting investors to Sri Lanka.
They pointed out the BoI dedication towards the investors and the policies that is going to govern the so called One Stop Shop that is going to be implemented at the Jaffna Kachcheri soon.
The Governor, who said it was an awareness programme to learn more about Jaffna, showed his keenness in addressing all the issues tabled by the investors who showed up at the event. He assured them he would intervene and make it ‘investor friendly’ policies. The Governor is meeting the investors one by one to address to their issues, Ceylon Today reliably learns.
Courtesy:Ceylon Today