Foreign investment key to eco development: Lankan Prez

Colombo: Sri Lanka cannot accelerate its economic development without encouraging and removing obstacles faced by entrepreneurs, President Gotabaya Rajapaksa said on Friday, as he pitched for foreign investment and urged the public to be wary of those propagating "incorrect public opinion" against it.

Speaking at the 74th National Day celebrations, Rajapaksa defended his government's policy of encouraging foreign investment and asserted that it is an essential factor in the development process.

"Foreign investment is especially important for large-scale projects, industries requiring modern technological know-how and new ventures that open up global market opportunities for us, he said. Rajapaksa called for vigilance over forces whipping up sentiment against foreign investments. "People need to be more vigilant of those who attempt to propagate incorrect public opinion against foreign investments, based on political motives, he said.

The Rajapaksa government has faced criticism from trade unions and some opposition parties over a number of deals with foreign entities, including with India's Adani Group for developing the Colombo Port's West container terminal and an agreement with a US-based energy firm to hand over gas supply to the Kerawalapitiya power plant.

"We cannot accelerate economic development without encouraging entrepreneurship and removing obstacles faced by entrepreneurs, Rajapaksa said.

We have a responsibility to be more respectful and friendly to entrepreneurs who start their own businesses amidst various vulnerabilities and provide employment and income opportunities for others as well, he said. Rajapaksa invited Sri Lankans who live abroad to invest in the island nation and help in building its future. Expatriate Sri Lankans who provide foreign exchange to the country are a major resource to us. We have not forgotten how they came forward for the country in the recent past and supported us making great sacrifices, he said.

We greatly appreciate their regular contribution to energise our economy. I invite all expatriate Sri Lankans to invest in their homeland. This will enable you to continue to actively contribute to building the future of the country, he said at the ceremony.

The elaborate ceremony with much pomp and pageantry came in for criticism from the Opposition. The main opposition Samagi Jana Balawegaya (SJB) boycotted the event, claiming the extravagant ceremony was a luxury at a time of a severe economic crisis.

Sri Lanka is currently facing one of its worst economic crises. A severe dollar shortage has adversely impacted imports including fuel, leading to a power crisis, compounded by shortages in essential items amid double-digit inflation.

The island has secured Indian economic assistance to boost its reserves while gaining separate credit lines to import fuel and food.