President refuses to accept BOI resignations

• President refuses to accept resignations of BOI Chairman and three board members
• BOI trade unions urge govt. to appoint new chairman, director board and DG 

In a plot twist to the resignation drama that unfolded at the country’s apex investment promotions body, Board of Investment (BOI),President Gotabaya Rajapaksa has refused to accept the resignations tendered by BOI Chairman Sanjaya Mohottala and three of its board directors.

The non-acceptance of the resignation had been officially conveyed to Mohottala and other three directors individually by President’s Secretary Dr. P.B. Jayasundara in letters dated December 2. 

The letter sent to Mohottala had notified him to continue as BOI Chairman, and it read “…as he (President) has highest confidence in your ability to contribute effectively to promote foreign investments to the best interest of the country and help the post-COVID economic transformation.” 

A BOI statement issued yesterday evening confirmed that President Rajapaksa had refused to accept the resignations of the Chairman and the three directors.

As of now, it is not clear whether the resignation of BOI Director General Pasan Wanigasekara, who also resigned along with Mohottala, has been accepted.  

Last Thursday, it was reported that BOI Chairman Sanjaya Mohottala and board directors Dr. Sanajaya Kulatunga, Dr. Harsha Cabraal and Dr. Harsha Subasinghe along with Director General Pasan Wanigasekara had tendered their resignations effective immediately. 

The BOI trade unions and leadership have been at loggerheads over a recent Cabinet-backed recruitment of personnel from the private sector for high salaries. Highly placed sources in the government however said this Cabinet decision could be revoked in the near future to end the tussle between the leadership and the unions. 
Meanwhile, the line of questioning adopted by the Committee on Public Enterprises (COPE) during a recent hearing on several matters pertaining to BOI, including the recruitment of private sector talent at higher salaries, was also said to have prompted the BOI board members of private sector repute to tender their resignations.  

Meanwhile, the BOI trade unions refuted an earlier statement issued by the BOI blaming forces within and outside the organisation for the resignation of the high-profile directors and the scuttling of the strategic agenda to attract FDI.

A joint statement issued by six BOI unions said the real reason for BOI not making any progress in terms of FDI has been its Chairman’s failure to implement any successful programme with the support of senior BOI officers.
The trade unions also urged the government to appoint a chairman, board of directors, and a director general “who have the knowledge and a vision to implement practical plans.”

However, a BOI statement issued yesterday said as of November 2021, the BOI had signed US$ 2 billion worth investment approvals and during the first half of 2021, US$ 760 million had been invested in Sri Lanka, of which US$ 400 million were FDIs.