Sri Lanka BOI chief says land policy for foreigners will be corrected

Oct 20, 2015 (LBO) – Sri Lanka’s Board of Investment says that the new administration will correct the land policy for foreigners which will help to bring more foreign direct investments into the country. “This has to be corrected and it will be corrected,” Upul Jayasuriya, Chairman of Board of Investment said. “You have to treat  foreigners equally.” Sri Lanka’s former administration imposed a restrictions on foreign ownership of property which have provisions that will allow non-nationals investing in the country to lease land with a tax of 5 to 15 percent and also stopped the drawing up of freehold land deeds on behalf of foreign investors. Jayasuriya also said the 15 percent stamp duty introduced in November 2014 discouraged foreign investment and created a bad image. “That has created a huge problem including for those public quoted companies where if foreign ownership is beyond 49 percent you are liable to pay stamp duty.” he added. Expertise argue these policies would slow down the foreign direct investment to the Island. Finance minister Ravi karunanayake told the members of the Sri Lanka and Malaysia Business Forum that leasing area which is a negative will be certainly corrected and changes can be expected for land purchase for investments but for pure speculative purchases it may not be allowed. "Let that be for Sri Lankans," Karunanayake said. "But if you have foreigners coming in for investments above a certain limit that is specified, we will be happy to give the benefits that you have been enjoying up to 2012."                         Now BOI will lead the process, some of our own people are hesitate to take decisions even though they are directors. The thinking pattern has to be changed Early next year Thouse da   GSP issue should be handle from origin where it began