Oct 21, 2015 (LBO) – Sri Lanka’s full potential can be achieved if the new government can come up with a proper economic policy framework for the island, the German ambassador said.
“Politically the country has opened a new chapter, but the full potential has not been reached yet,” Juergen Morhard, German ambassador to Sri Lanka, said.
“Sri Lanka is now on the attention list of many companies and investors of the world,’ he said.
“But much needs to be done.”
He says that the new government is yet to introduce a proper economic policy framework to attract foreign direct investments, which is a clear indication that the country lacks the capability of implementing an economic development policy framework.
“Although the general mood and science are excellent what is important is to develop trade and investment, which is the way to develop the country,” he said.
“Numerous tax regimes, such as the ‘super gains tax’ discourage the promotion of foreign investments into Sri Lanka.”
In 2014 Sri Lanka managed to secure only 1650 million US dollar worth of FDI.
The new government that was elected in January did not set a target for FDI for 2015.
The ambassador was the chief guest at the launch of operations of Bosch, a leading German supplier of technology and services in Sri Lanka.