JVs compulsory for foreign construction firms in Sri Lanka govt projects: Budget2019
Mar 05, 2019 15:31 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's finance minister Mangala Samarawera said new rules will be introduced to compel foreign construction companies to form joint ventures with local firms when bidding for government projects.
Presenting the government’s 2019 budget, Samaraweera told parliament the move was a reaction to the many foreign construction companies which had won contracts in the country.
“To support the local construction companies, no foreign construction company will be allowed to tender for government projects unless it is fully foreign financed, without forming a joint venture with a local company or consultancy,” Samaraweera said.
He said the joint venture arrangement will also help transfer technology to local construction firms.
Local firms had been complaining that foreign contractors had been depriving them of work.
(COLOMBO, March 05, 2019-SB)