The Vice President of the International Executive Service Corps stated that the “biggest issue” in providing loans for US enterprises to carry out projects in Sri Lanka, is the much berated expropriation bill.
The bill, which allows the government to acquire enterprises and assets deemed to be underperforming, has been criticised by numerous organisations, including Moody’s credit rating agency and the Economist Intelligence Unit.
Whilst the International Executive Service Corps (IESC) signed an agreement with the American Chamber of Commerce in Sri Lanka (AmCham SL), Conconi spoke out against the bill, saying that affected the premium on Political Risk Insurance.
Overseas Private Investment Corporation (OPIC), a US government institution, provides the financial backing for Political Risk Insurance, which includes political violence and expropriation. Conconi said that such projects in Sri Lanka now faced an insurance premium between 2-5%, noting that Pakistan premium is currently at 3.5%.
See our earlier posts:
Expropriations concern foreign investors – EIU (23 Nov 2011)
Indian investors caught out by expropriation act (20 Nov 2011)
Moody's slams government's expropriation bill (14 Nov 2011)
We need your support
Sri Lanka is one of the most dangerous places in the world to be a journalist. Tamil journalists are particularly at threat, with at least 41 media workers known to have been killed by the Sri Lankan state or its paramilitaries during and after the armed conflict.
Despite the risks, our team on the ground remain committed to providing detailed and accurate reporting of developments in the Tamil homeland, across the island and around the world, as well as providing expert analysis and insight from the Tamil point of view
We need your support in keeping our journalism going. Support our work today.
For more ways to donate visit https://donate.tamilguardian.com.
