saraprobe
01-28-2008, 01:52 AM
Ample opportunity for country to earn foreign exchange
By Indika Sakalasooriya
The state owned financial giant, Bank of Ceylon (BoC) mulls to steer ahead the Panchikawatte duty free hyper market project, which had been delayed for the last few years due to bureaucratic red tape, most probably with a foreign party in the near future, The Nation Economist learns.
The Panchikawatte duty free hyper market project proposal surfaced almost five years ago and it proposes the Panchikawatte area, which has approximately 18 acres, to be redesigned into one huge duty free hyper market to attract duty free tourism and duty free shopping.
BoC Chairman Gamini Wickramasinghe told The Nation Economsit that, for the last one year, BoC has been trying to get foreign investors, especially from India and Malaysia for this project. “Even in the last few months, Export Promotion and International Trade Minister Professor G.L Pieris was trying his best to attract several big foreign investors for the project. The attempts have been fruitful and several of them have already visited Sri Lanka” he said.
According to Wickramasinghe, if the concept of hyper market becomes a reality in the near future, it will definitely give a boost to the Sri Lankan tourist industry as well as the capital market. “The venture will be a Public Private Partnership (PPP) and if it is listed it will no doubt strengthen the local capital market. India has done it in a successful way and we can also do it here” he remarked
Explaining the concept behind the proposed project, Wickramasinghe said that a reasonable flat duty rate should be introduced to the traders who operate in the proposed market. “Unlike at present, if a flat duty rate is introduced it will promote free trade as well as there will be a reduction in duty frauds. Later this amended duty rate can be implemented island-wide and like Singapore, Sri Lanka will be able to attract the duty free shoppers from all around the world” he said.He also pointed out that with the commencement of operations of the proposed Weerawila airport, the country can really benefit through duty free shopping. “Having two international airports will increase the number of flights into the country and will bring more and more tourists. If we can make these tourists spend their money in Sri Lanka, it is obvious that we will be able to gain more foreign exchange. In that sense, Panchikawatte duty free hyper market can be the initial step” he said.
However, the biggest challenges that will hinder the enthusiasm of implementing the project are the rigid bureaucratic system and the lack of transparency. “Many big companies like TATA and Reliance of India are willing to come to Sri Lanka if better procurements in transparency are practiced” Wickramsinghe said.
Another factor he highlighted was that somewhere down the line, if the project needs to be a success, the President himself must sit as chief of the project and take all the critical decisions with the implementors. “The Indian premier does this frequently and it has proven very successful” he remarked.
BoC, very recently also expressed its willingness in playing a major role in building a U$ 750 million railway track with an elevated highway from Katunayake airport to Maradana.
:yes: :yes: :yes: :yes: :yes: :yes:
Nation Economist (http://www.nation.lk/2008/01/27/busi1.htm)
Sounds like it's really happening^^^^^^
By Indika Sakalasooriya
The state owned financial giant, Bank of Ceylon (BoC) mulls to steer ahead the Panchikawatte duty free hyper market project, which had been delayed for the last few years due to bureaucratic red tape, most probably with a foreign party in the near future, The Nation Economist learns.
The Panchikawatte duty free hyper market project proposal surfaced almost five years ago and it proposes the Panchikawatte area, which has approximately 18 acres, to be redesigned into one huge duty free hyper market to attract duty free tourism and duty free shopping.
BoC Chairman Gamini Wickramasinghe told The Nation Economsit that, for the last one year, BoC has been trying to get foreign investors, especially from India and Malaysia for this project. “Even in the last few months, Export Promotion and International Trade Minister Professor G.L Pieris was trying his best to attract several big foreign investors for the project. The attempts have been fruitful and several of them have already visited Sri Lanka” he said.
According to Wickramasinghe, if the concept of hyper market becomes a reality in the near future, it will definitely give a boost to the Sri Lankan tourist industry as well as the capital market. “The venture will be a Public Private Partnership (PPP) and if it is listed it will no doubt strengthen the local capital market. India has done it in a successful way and we can also do it here” he remarked
Explaining the concept behind the proposed project, Wickramasinghe said that a reasonable flat duty rate should be introduced to the traders who operate in the proposed market. “Unlike at present, if a flat duty rate is introduced it will promote free trade as well as there will be a reduction in duty frauds. Later this amended duty rate can be implemented island-wide and like Singapore, Sri Lanka will be able to attract the duty free shoppers from all around the world” he said.He also pointed out that with the commencement of operations of the proposed Weerawila airport, the country can really benefit through duty free shopping. “Having two international airports will increase the number of flights into the country and will bring more and more tourists. If we can make these tourists spend their money in Sri Lanka, it is obvious that we will be able to gain more foreign exchange. In that sense, Panchikawatte duty free hyper market can be the initial step” he said.
However, the biggest challenges that will hinder the enthusiasm of implementing the project are the rigid bureaucratic system and the lack of transparency. “Many big companies like TATA and Reliance of India are willing to come to Sri Lanka if better procurements in transparency are practiced” Wickramsinghe said.
Another factor he highlighted was that somewhere down the line, if the project needs to be a success, the President himself must sit as chief of the project and take all the critical decisions with the implementors. “The Indian premier does this frequently and it has proven very successful” he remarked.
BoC, very recently also expressed its willingness in playing a major role in building a U$ 750 million railway track with an elevated highway from Katunayake airport to Maradana.
:yes: :yes: :yes: :yes: :yes: :yes:
Nation Economist (http://www.nation.lk/2008/01/27/busi1.htm)
Sounds like it's really happening^^^^^^