II. NATIONAL INSTITUTIONAL ARRANGEMENTS FOR INTEGRATING ENVIRONMENTAL CONCERNS INTO THE POLICY DECISION PROCESS
B. The evolution and existing structure of institutional arrangements for the tea sector in the various ministries and agencies
The Board of Investment (BOI), which functions within the purview of the Ministry of Finance and Planning, is the State agency responsible for approving all project proposals involving foreign direct investment (FDI). BOI also sets up and manages the free trade zones (FTZ) in Sri Lanka. Projects with FDI, as well as qualifying local investment projects which are granted BOI status, become eligible for an attractive package of incentives including tax benefits. BOI enjoys full delegated authority in regard to dealing with environmental issues of projects within the FTZ areas it administers. However, projects granted BOI status, but which are located outside FTZ areas, require the concurrence of CEA in regard to the environmental policy issues prior to being granted approval. The applicable mechanisms are dealt with in chapter III.