By Charumini de Silva
Ceylon Finance Today: A foreign investor raised concerns over the ban on foreign companies purchasing land, and pointed out that it makes almost impossible to build and grow business in Sri Lanka.
Singapore based Calamander Group Incorporated (CGI) Founder and Chairman Roman Scott speaking to Ceylon FT said the new land law made it very difficult for foreigners to invest here in sectors like hospitality, which require land to build. "I understand, and approve of preventing the purchase of non-productive, non-employment generating residential land, for private villas being bought by foreigners. But the nation damages its interests if it prevents genuine, bona fide companies that employ a lot of people and pay significant taxes as we do, from building and operating productive facilities like hotels, factories, healthcare facilities, BPOs, and shops, on land purchased for this purpose. FDI is sure to suffer," he said.
He said the new land laws implemented by the government would damage the interest of new foreign investments flowing into the country. "The recent ban on foreign companies purchasing land makes it almost impossible to grow on the hotel side, where I had major investment plans. Building hotels requires land, and to operate hotels requires people, but both these requirements in Sri Lanka are becoming very challenging. It's as simple as that."
He further pointed out that as foreign investors they found it difficult to find good managerial level personnel in Sri Lank due to the high levels of brain drain into Middle Eastern countries. "As the country continues to lose a lot of talent to work abroad, tight labour market, rising wages, and the limited experienced management talent pool to draw from has been a major problem for us from the start. We are short of good staff on the hotel and coffee bean side, across all levels."
Nevertheless, Scott said that he remains highly committed to Sri Lanka. "I still love the place and the people, however frustrating it can sometimes be, building a business here. I do have more grey hair than before I invested! But investing here has become more difficult for the reasons I said above. Some policy can appear a little arbitrary and foreigner unfriendly. But I remain one of the country's best friends and most ardent champions; yet unfortunately Sri Lanka doesn't always treat its best friends as well as it should."
www.ceylontoday.lk
Ceylon Finance Today: A foreign investor raised concerns over the ban on foreign companies purchasing land, and pointed out that it makes almost impossible to build and grow business in Sri Lanka.
Singapore based Calamander Group Incorporated (CGI) Founder and Chairman Roman Scott speaking to Ceylon FT said the new land law made it very difficult for foreigners to invest here in sectors like hospitality, which require land to build. "I understand, and approve of preventing the purchase of non-productive, non-employment generating residential land, for private villas being bought by foreigners. But the nation damages its interests if it prevents genuine, bona fide companies that employ a lot of people and pay significant taxes as we do, from building and operating productive facilities like hotels, factories, healthcare facilities, BPOs, and shops, on land purchased for this purpose. FDI is sure to suffer," he said.
He said the new land laws implemented by the government would damage the interest of new foreign investments flowing into the country. "The recent ban on foreign companies purchasing land makes it almost impossible to grow on the hotel side, where I had major investment plans. Building hotels requires land, and to operate hotels requires people, but both these requirements in Sri Lanka are becoming very challenging. It's as simple as that."
He further pointed out that as foreign investors they found it difficult to find good managerial level personnel in Sri Lank due to the high levels of brain drain into Middle Eastern countries. "As the country continues to lose a lot of talent to work abroad, tight labour market, rising wages, and the limited experienced management talent pool to draw from has been a major problem for us from the start. We are short of good staff on the hotel and coffee bean side, across all levels."
Nevertheless, Scott said that he remains highly committed to Sri Lanka. "I still love the place and the people, however frustrating it can sometimes be, building a business here. I do have more grey hair than before I invested! But investing here has become more difficult for the reasons I said above. Some policy can appear a little arbitrary and foreigner unfriendly. But I remain one of the country's best friends and most ardent champions; yet unfortunately Sri Lanka doesn't always treat its best friends as well as it should."
www.ceylontoday.lk
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