The government yesterday said as a measure to encourage the domestic Industries within the government policy framework, it will identify priority areas for which foreign direct investment should be mobilized while protecting the interest of the local investors.
The Cabinet has decided that processing and value addition of spices, animal husbandry and poultry farming are the sectors for which foreign investments need to be mobilized, with the intention of import substitution.
Foreign investment on assembling of vehicles, refining of petroleum products, manufacturing of boats for export market will also be encouraged.
However, foreign investment in small scale agricultural industries, retail trade, manufacturing of steel and cement and beauty care related products will not be encouraged.
The Cabinet has given approval to appoint a ministerial committee under the chairmanship of Senior Minister for International Monetary Co-operation Dr. Sarath Amunugama and comprising other ministers to revise the current regulations and to make proposals to the Cabinet.