COLOMBO: Sri Lanka missed its foreign investment target last year because of bureaucratic delays, which would pull down economic growth in the formerly war-torn island, a minister said Thursday.
Investment Promotion Minister Lakshman Yapa Abeywardena said red-tape and other bureaucratic delays slowed foreign direct investment (FDI) to $1.3 billion for the 2013 calendar year, short of a projected $2.0 billion.
"There were shortcomings on our part that held up the expected foreign investments," Abeywardena told reporters in Colombo.
"We need to get $4.0 billion of FDI to maintain a growth rate of 8.0 percent," Abeywardena said. "This year, we are hopeful of getting about $2.0 billion in FDI, but we need to push it up much more."
Sri Lanka's economy grew a weaker-than-expected 7.3 percent last year, though the figure was stronger than the 6.3 percent recorded in 2012.
But the economy has slowed since the 8.0 percent mark recorded in the first few years after the country's 37-year-long war ended in 2009 when the military crushed the Tamil Tiger rebels.
Sri Lanka is still facing international censure over allegations that up to 40,000 civilians were killed in the final months of its ethnic war pitting the largely Sinhalese army against Tamil separatists.
Sri Lanka is banking on several big ticket investments, including three casino resorts with a total investment of $1.3 billion, to reach its total $2.0 billion FDI target this year, but the projects have been bogged in controversy.
Sri Lanka has been offering generous 10-year tax holidays for foreign investments as part of a host of incentives aimed at wooing foreigners.
Abeywardena said the government was also hoping to open up the local building materials market to meet the island's construction and rebuilding needs after decades of ethnic war.
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