Bouquet to Minister Lakshman Yapa Abeywardena

I have been discussing the possible investment of US$44 million from a Middle Eastern investor in the Galle Harbour to establish a Yacht /Boat Repair and Building Yard with Sri Lanka Ports Authority (SLPA) for over 18 months.

Despite the political support due the benefits the country will reap, both the Board of Investment (BOI) and the SLPA have not been able to materialise the project due to the lack support from other organisations and lack of understanding about the importance to develop the neglected harbour and the employment benefits to be provided to the youth in Sri Lanka.

The project was proposed to the SLPA via the Ministry in the beginning of 2011 and the standard Cabinet-appointed Review Committee (CARC) provided approval in February 2012 after several meetings and deliberations and the Environment Impact Assessment (EIA) was completed by May 2012. As advised by the CARC, a BOI company was formed and an agreement was signed in May 2012.

Subsequently the SLPA obtained board approval and sought approval from Cabinet of Ministers in October 2012. Cabinet approval was granted in November 2012.

As per the Cabinet approval subject to obtaining observations from the Attorney General’s Department, the business agreement and the lease agreement was submitted by the SLPA in November 2012.

As the AG’s Department is very busy with UN Human Rights Council issues and other local legal battles, the SLPA has not been unable to obtain final clearance to conclude the agreement and commence the project.

State counsel handling the project has been posted to the UN sessions in Geneva, hence the review the agreement has been delayed.

Concerned with these delays, I made an appointment with the new Minister of Investment Promotion Lakshman Yapa Abeywardane on March 6 and explained the difficulties of sustaining the project due to disappointment of the Middle Eastern investor and conveyed their frustration.

The Minister immediately called the BOI officer concerned and called her to his office and inquired about the delay to commence the project. The BOI officer complained that Legal Department of both SLPA and BOI are helpless as many agreements related to investment are held up at the AG’s office and they cannot provide any more help.

The Minister immediately instructed her to list this particular problem in the agenda with the meeting with the President so that a representative of the AG’s department is summoned to obtain confirmed dates for submitting their observations. I have sent many faxes and emails to various organisations and the political leadership, but I noted that this is the first time I managed to get a speedy response from a minister except from Ports Minister who has provided his support to expedite SLPA approvals.

It is essential that a task force is formed by the BOI which meets every week where the BOI can expedite the approval process with the help of the highest political backing. This is important if Sri Lanka wants to promote more and more investments in Sri Lanka.

Finally I would like to express my gratitude to the Minister for time and action . Dr Sarath M.B. Obeysekera Colombo.