The Board of Investments (BOI) is reviewing its investment agreements which it inked during the last few years and is also planning to transfer some Rs 2 billion of its reserves to the Treasury, informed sources said.
“These pacts are being studied by the BOI Treasury whether there was indiscriminate use of tax benefits to investors,” one source told the Business Times.
The Business Times learns that Treasury Secretary Dr P.B. Jayasundera has requested the BOI to examine investment agreements signed, but not yet proceeded with, during former Chairman Dhammika Perera’s tenure. “Yes, these are being re-examined,” the source said.
However when asked, Dilip Samarasinghe, BOI’s Director (Media & Publicity) said there was no such thing. He also said that no fund transfer of Rs 2 billion or otherwise has been made (to the Treasury).
The source said that Rs 2 billion surplus cash that BOI has is planned to be transferred to the Treasury. “The BOI had wanted to use these money on developing infrastructure, other BOI zones, etc (during Perera’s time), but the Treasury wants to use this cash to upgrade the North/East farming communities,” the source said, noting that what the investment promotion agency initially intended can be given to the private sector.
“The government has a priority to help to the North and the East, which it is doing right now. Finance Ministry sources said Dr Jayasundera and Mr Perera were known to have some disagreements.