Despite the economic crisis, the Board of Investment has been able to attract foreign direct investments of $1.75 billion exceeding the targeted amount of $1 billion for 2022…reports Asian Lite News
The Sri Lankan government will propose special tax breaks and concessions in the 2024 budget to attract large-scale foreign direct investors in information technology and vehicle assembly, state media reported on Monday.
Investment Promotion State Minister Dilum Amunugama was quoted as saying that the government will introduce a strategic tax policy, including tax breaks for up to a period of two to five years for investors in the IT sector, reports Xinhua news agency citing the state media.
Amunugama said the proposals are being prepared by the Finance Ministry.
He said with these schemes, Sri Lanka plans to encourage investors to invest more than $50 million.
Despite the economic crisis, the Board of Investment has been able to attract foreign direct investments of $1.75 billion exceeding the targeted amount of $1 billion for 2022, and the target for this year is $1.5 billion, Amunugama told a press conference in July.
Ties with India
Sri Lankan Foreign Minister Ali Sabry said that Sri Lanka is looking at forging a closer relationship with India, noting that they are trying for electricity, renewable energy, tourism and port shipping connectivity.
Sabry in an exclusive interview with ANI emphasized that India is one of the fastest growing largest economies.
“It is a big economy. India is growing and that growth path is very important. Together with that, the region must grow,” he said.
Sabry further stressed that Sri Lanka has seen a big opportunity in India. “We have seen a big opportunity here, that’s the idea. I’m sure we will be able to do that and that will be better for both countries.”
He said that Sri Lanka wants a good region with prosperity, peace, harmony, and among all, “we want a good and prosperous neighbour.”
Sabry further praised India and added, “India is going that path. We want to go with them.”
While talking about the current situation in the country and India’s assistance, Sebry highlighted that the situation is much better compared to last year.
“Inflation has come down, the Rupee has stabilised, reserves have risen, and tourism has increased… It is India who provided us with various forms of assistance worth 3.9 billion,” he added.
Moreover, he expressed his gratitude and said that India can proudly claim a great part of the credit that Sri Lanka has achieved today.
Underscoring his meeting with External Affairs Minister S Jaishankar, Serby expressed his happiness to meet him and said that the two ministers had a small conversation on ways to strengthen the India-Sri Lanka relationship.
“I have invited him to visit Sri Lanka for the IORA. He promised that he would try his level best
to make it and to take the country forward,” he said.
Last year, India supplied over 270,000 MT of fuel to Sri Lanka so far to help ease the power crisis in the island country which was witnessing acute power cuts.
Moreover, Sri Lanka also signed a USD 1 billion credit line with India for procurement of food, medicines and other essential items, amid the island nation’s worsening economic crisis. The agreement was signed between the State Bank of India (SBI) and the Government of Sri Lanka, during Sri Lankan Finance Minister Basil Rajapaksha’s two-day visit to India.