Industrialist wants BOI rules relaxed to save foreign exchange outflows

Venora Group of Companies Chairman Sagara Gunawardena has called for the relaxation of Board of Investment (BOI) regulations that limit the companies operating in Export Processing Zones from selling in the local market.

Gunawardena said the companies operating in EPZs can only sell 20 percent of their products in the local market and this limit should necessarily be lifted in order to curb foreign exchange outflows.

“About 20 percent of some products can be sold in the local market. But this percentage is not enough in relation to some products,” he said.

He added that some products manufactured locally will have to be imported to meet the demand of local consumers by paying in dollars.

“There will be unnecessary spending of dollars. World famous branded garments are manufactured in Sri Lanka but these products   have to be imported to local shopping malls by spending dollars,” he stressed.

Gunawardena opined that relaxation of such BOI regulations will boost the tourism industry too. “The country should identify global economic market trends and adapt accordingly, he said.