No teeth for proposed Development Agency
With the stalling of the controversial Development (Special Provisions) Bill, the ‘Agency for Development’ set up at the Development Strategies and International Trade Ministry is in a quandary without legal teeth for fast-tracking, streamlining and attracting Foreign Direct Investments (FDI), officials said.
The agency was set up after receiving cabinet approval on 25-10 -2016 to present the Development (Special Provisions) Bill in parliament where it was not presented as yet due its outright rejection by Provincial Councils.
However despite no legitimacy, the agency is being maintained under Managing Director (designate) Mangala Yapa with limited staff at World Trade Centre (WTC) in Colombo. It is carrying out assignments being given by the Ministries of Development Strategies and International Trade and National Policies and Economic Affairs.
When contacted to seek more information relating to the current situation of the agency, Mr. Yapa said that he is unable to make any comment at the moment.
The Treasury has not allocated necessary financial provisions to maintain the proposed unit as it has to be approved by parliament first, a senior Finance Ministry official told Business Times adding that the Ministry of Development Strategies and International Trade has no legal authority to spend money allo- cated for the ministry from the budget.
A General Affairs Council (GAC) of the Agency consisting of eight persons including the minister in-charge of Development Strategy has already been established.
This agency has a specific task of attracting more FDIs to the country without delay and all arrangements have been made to commence its operations, a senior official said adding that the Prime Minister has at a recent high-level meeting issued a directive to launch it as soon as possible.
A high-powered committee appointed to work out modalities of the agency has already developed its structure as a one stop shop for FDIs with powers to obtain approvals of relevant agencies for foreign investors.
Several mega FDI projects in IT, tourism, agriculture (especially sugarcane), telecommunications, digitalisation and industrial sectors are in pipeline for approval since the past five months, the official said.
The Development (Special Provisions) Bill providing provisions to set up this Agency aims at centralising all economic activities in every area including the provincial councils, with a common policy and plan.
The Agency would exercise powers over economic development areas within the provinces declared under this law.
Any enterprise or investor seeking to carry out any commercial activity or invest in any economic development area has to register with the agency and obtain a certificate for that purpose, he added.