The Investment Promotions Ministry has reported a substantial 122 percent increase in foreign direct investment (FDI) projects in Sri Lanka for the current year, surpassing the figures from 2022, according to the Board of Investment (BOI), the nation’s premier investment promotions agency.
Within the first 11 months of the year, the BOI has successfully attracted a total of US $1.8 billion in investments, of which US $1.5 billion is attributed to FDI projects. Addressing a press conference, State Minister Dilum Amunugama acknowledged the challenging economic climate, forecasting a -2.0% negative growth for 2023, albeit an improvement from the -7.8% contraction experienced in 2022.
Amunugama highlighted the arduous task of attracting FDI amid economic contraction and commended the BOI for achieving such significant year-on-year (YoY) growth, overcoming both external and internal setbacks.
The substantial increase in projects is primarily attributed to the notable investments in the energy sector, with key contributions from prominent entities such as Adani Corporation, Sinopec, RM Parks in collaboration with Shell, and additional investments in ITC, BPO, tourism, and manufacturing sectors.
The countries leading the FDI contributions in 2023 include China, India, the United States, Hong Kong, the United Arab Emirates, France, Korea, Germany, and Singapore. Meanwhile, the provisional data from the BOI reveals a contraction in local investments, with figures for January 01 to November 23 totaling US $258 million—a stark 77 percent decrease compared to the corresponding period in 2022 when local investments amounted to US $1.1 billion.
