Five SDPs including Krrish still at ‘identification’ stage
Though Sri Lankans can challenge strategic development projects (SDPs) which include Shangri La, Crown (Casino project) and Krrish when the first gazette is issued, there hasn’t been any such opposition.
People are not exercising their right of making written objections or representations regarding such projects due to lack of awareness or apathy, a top government administrator said, adding that there is transparency in such project approvals. A streamlined procedure including the entertaining of public representations is followed by the line ministry before parliamentary approval is sought to 
implement SDPs. Investment Promotion Ministry secretary M.M.C. Ferdinando told the Business Times that “strategic development project” status has been introduced to facilitate high end investments on the directions of the Treasury Secretary Dr. P.B. Jayasundera moving away from the earlier practice of approving mini investment projects like small industrial ventures and Chinese restaurants etc.
Under a structured process, SDPs are open for written public submission for a 30-day period after the publication of the first gazette notification following the identification of the project, he revealed.
“We may not be approving many projects with low value per day as it used to be in the past; now our project numbers are smaller yet with higher value,” Mr. Ferdinando said adding that “in some cases we are also increasing the investment thresholds and commitments”.
An SDP is a project which is in the national interest and likely to bring economic and social benefit to the country, likely to change the landscape of the country and be of benefit to the public creating substantial employment opportunities.
Outlining the procedure, he noted that this entails identification of the project; publication of a gazette notice on identifying the project; inform the cabinet; obtain cabinet approval for same; and publication of an order in the gazette specifying the exemptions granted and then placing it before parliament for approval by resolution of parliament.
People should be made aware of this transparent process and also their right to make representations on SDPs, he added.
Under the Strategic Development Act, 10 mega projects with an investment of US$ 5.98 billion have been facilitated by the Board of Investment (BOI) so far.
The realised investment of these strategic investment projects is in the region of US$896 million up to the third quarter of this year, the ministry progress review report revealed.
The Government is currently working on five ‘strategic development’ deals – Krrish Transworks Colombo (Pvt) Ltd, Lanka Sugar Refinery Company Pvt Ltd, CHEC Port City Colombo Pvt Ltd, Avic International Holdings Lanka (Pvt) Ltd and Prosperity Place Lanka (Pvt) Ltd.
These projects are under consideration for granting Strategic Development Project (SDP) status. They are at the second level of a 5-step process.
Meanwhile the government issued gazette notifications this week announcing tax concessions to three mixed development projects but there was no indication of gaming after the withdrawal of previous gazettes owing to opposition protests in parliament.
Gazette notices were issued for Lake Leisure Holdings by Australian casino tycoon James Packer and local businessman Ravi Wijeratne who is also a casino owner, Queensbury Leisure by Dhammika Perera, another Sri Lankan businessman cum casino owner and Waterfront Properties by John Keells Holdings.
It has been announced previously and widely that casinos (gaming facilities) are to be housed in these mega resorts. However Investment Promotion Minister Lakshman Yapa Abeywardena has repeatedly told journalists at media conferences on several occasions that the ministry has identified these as mixed development projects.
The government will not give licences to new casinos but it cannot prevent the entry of existing casino operators to carry out its businesses in these resorts as tenants, he has said in the past.