All Union Alliance of the Board of Investment (BOI) has issued a stark warning about the proposed Economic Transformation Bill, set to be submitted to Parliament on May 22.
The alliance argues that the Bill will destabilize the investment sector, which is already facing economic challenges.
They claim the Bill benefits a select few without consulting field experts or investors, risking the departure of existing investors and further jeopardizing the sector.
They argue that the Bill’s true aim is to transfer 15 profitable investment zones under BOI control to private associates before upcoming elections. A critical aspect is the repeal of the Sri Lanka Board of Investment Act No. 4 of 1978, which would disrupt operations for many companies.
The Bill proposes creating five new entities, including the Sri Lanka Economic Commission and the Office for International Trade, with numerous senior positions likely filled by political affiliates.
This restructuring would split the BOI, potentially undermining the support system for over 2000 projects. The alliance also warns of increased operational costs and jeopardized employee rights due to privatization.
Furthermore, the Bill would allow the Minister of Investment, with Finance Minister approval, to bypass cabinet scrutiny for project approvals, raising concerns about potential corruption and harmful projects.
The alliance argues that inconsistent policy, not BOI structure, is the main barrier to attracting investment, advocating for strategic changes rather than privatization and restructuring.
Thus, the alliance called for a transparent revision of the Bill, involving affected parties and economic experts.
