Sri Lanka will sign Foreign Direct Investments (FDIs) to the tune of around USD 2 billion by the end of this year ending the year, said Money, Capital Markets and State Enterprise Reforms State Minister Ajith Nivard Cabraal on Friday.
He said around USD 800 million FDIs have already been realised and added that more will be finalised shortly.
“We are working on investments in pharmaceuticals, apparels and IT industry which will be a major component of the share of FDIs to the country in the coming year,” the State Minister said, adding that many large scale global investors have shown a keen interest in investing in Sri Lanka while some will set up joint ventures with local entities. Sri Lanka has signed FDIs to the value of around USD 1.5 billion so far this year and another USD 1 billion in investments are in the pipeline, according to the BOI. Cabraal said there would be an increase in foreign inflow to Treasury Bills and Bonds further strengthening the economy.
Sri Lanka’s FDIs increased by around USD 153 million in the first quarter this year. However, reaching the USD 2 billion target would be an uphill task given the current global scenario. Political stability, consistency and clarity of policy are a key to woo investors who in the past had abandoned investments due to political dilly dallying and lack of consistency in policy.
The new Government has pledged that key policies will not be changed for the next four to five years.
However, Opposition factions are sceptical about the economic goals of the Government which they say, are unattainable.
Refuting the claims, Cabraal said the Government granted concessions to people in the worst of times during the pandemic and yet continues to support the affected sections. “We have restored stability and revived the economy which is likely to record a one percent growth this year which is an achievement compared to many major economies which are recording negative growth,” the State Minister said, adding that interest rates, tax concessions and many more benefits were passed on to people to support the economy.
The economy contracted by 1.6 percent in the first quarter this year while the figures of the second quarter are expected in the coming weeks.
He said the government has paid all the outstanding dues even during trying times and added that the economy will bounce back soon due to sound and stable policies to attract investments.