Cabinet nod for President’s proposal to make Parliament underwrite foreign investment agreements

By Rathindra Kuruwita

The Cabinet has approved a proposal by President Ranil Wickremesinghe to seek parliamentary approval for agreements on foreign investment, Cabinet spokesman Bandula Gunawardena told reporters yesterday.

A government could also withdraw from or change such a foreign project with parliamentary approval, Minister Gunawardena said, adding that in the past leaders had stopped foreign investment projects according to their whims and fancies and such ad hoc decisions had cost the country dear. “Foreign countries and investors need to have confidence in Sri Lanka if they are to invest in large projects in the country.”

The Cabinet Spokesman said more foreign investment was needed as the country could not carry out development activities with foreign loans alone.

Investment protection agreements were quite common in the world, he said.

“The President left for Japan after obtaining Cabinet approval for measures to protect foreign investment. Such assurances are needed if we are to attract foreign investment,” he said.