He said the present 'ill politics' has started taking toll on the investment scenario of Bangladesh, which Rahman said was on sound footing.

"The investors have started cancelling their scheduled trips to Bangladesh," said Rahman while addressing a press conference at BoI secretariat.

Tata Group has made an investment proposal of Tk 12,000 crore (US$2 billion), highest ever in Bangladesh, in the areas of power, fertiliser and steel.

Quoting an official of Tata Group, Rahman said they (Tata) want to monitor Bangladesh's political situation.

Two Tata officials after visiting Bangladesh told the BoI on Monday that the scheduled trip to Bangladesh has been deferred for a month, BoI executive chairman said, adding, "Ratan Tata expressed desire to visit Bangladesh in the third week of October."

Ratan Tata was scheduled to arrive in Dhaka on September 6 on a two-day visit for signing an expression of interest (EOI) with the BoI.

Speaking at the press briefing, Rahman said the deadly grenade attacks on a public meeting of main opposition party and the subsequent political violence have come as a blow to the country's investment environment.

Still smarting from the devastating floods, the country is now suffering from political unrest, he said.

"If such confrontational politics continues investments in the pipeline will become uncertain," he said.

"To overcome the situation both the government and the opposition parties should take necessary steps. Otherwise, it will not be possible to increase investments in the country," the BoI executive chairman said.

He said government has to improve law and order to gain confidence of foreign investors.