The inflow of Foreign Direct Investments (FDI) to projects approved by the Board of Investment (BOI), including loans for such projects, show an increase of 81 percent, according to a recent Economic Development Report issued by the Central Bank of Sri Lanka (CB).
According to the report, investments on identified projects including loans amounted to US$ 601.3 million in the first half of 2017 compared to US$ 332.2 million in the first half of 2016.
The increase was mostly identified in FDI inflows relating to infrastructure projects, services and manufacturing have increased by 138.2 percent, 15.1 percent and 93.8 percent respectively.
A majority of the FDI during the period was on account of infrastructure related projects representing around 46 percent of total FDI (US$ 276.6 million). FDI in the manufacturing sector amounted to around 31 percent (US$ 185.6 million) whereas FDI in the services sector amounted to US$ 138.5 million representing about 23 percent during the first half of this year, the report said.
Meanwhile, investment activities, mainly driven by private investment expenditure are expected to maintain its positive growth momentum in 2018, accounting for about 32.5 percent of GDP.
Private investment expenditure is expected to increase with the prudent Government policy measures that would eventually boost investor confidence. According to the report, private investment, especially related to the construction of condominiums and commercial buildings are expected to contribute towards economic growth.