FDI worth $20 bn projects approved this year

International Trade Minister Malik Samarawickrama disclosed last week that the Investment Board (BoI) had accepted over $20 billion in foreign direct investment (FDI) projects for this year. 

There is one project that the Cabinet has just passed, worth $15 billion.

Recognising that it will take at least three to four years for many of these projects to be fully functional with all the correct environmental clearances, the Minister said the reality is that they are all in the pipeline and these investments are currently being undertaken by the necessary authorities. He also said these projects would provide direct employment for more than 25,000 individuals.

Noting that Sri Lanka can be proud of its FDI accomplishments that are now catching up, he said the FDI inflows to Sri Lanka between 1978 and 2018 were $17.3 billion, while FDI inflows were $5.8 billion from 2015 to mid-2019. One-third of the complete FDI since our economy's liberalisation has been coming in within the last four years. Hence, this is a clear sign of investors' confidence in Sri Lanka and the opportunities for investment in our nation.

The Minister also observed that over the previous three years, the government has embarked on a series of policy reforms to promote the economic transition toward more trade, exports, and FDIs. He called on ministries of government, organisations, and government leaders’ dedication to expand exports and boost export-oriented FDIs.

The Minister also observed further legislative modifications to attract more investment by enhancing the efficiency of Sri Lanka in the World Bank's Ease of Doing Business rankings.

OSL Take: The statement made by Sri Lanka’s Minister for International Trade and Development Strategies on the FDIs that have reached the country is indicative of the business/investment potential in Sri Lanka. The country is engaged in an aggressive development program that covers all vital economic sectors islandwide.

Also, the country’s geographical positioning in the Indian Ocean, the ‘ease of doing business’ environment and the many trade agreements as well as trade concessions enjoyed by Sri Lanka have made the island nation the most suitable business destination in all of South Asia. All these have also increased the business/investment opportunities in Sri Lanka.

VBS/AT/18102019/Z_TB1