- FDI from Jan-June surpassed US$ 507 million
- Realised local investment reached US$ 285 million
- Approves 57 new projects
- Creates 0ver 700 employment opportunities
Refuting claims that the country hasn’t received any Foreign Direct Investments (FDIs) this year other than what it had received from last year’s approved projects, the Board of Investments (BOI) said that there has been a remarkable growth in realised FDI inflows during the first half of this year recording an impressive 100% increase over the corresponding period in 2024.
Arjuna Herath
According to the BOI, FDI inflows during the first six months this year surpassed US$ 507 million, a 101% increase from US$ 252million reported in the corresponding period last year.
Realised local investment reached US$ 285 million bringing the total amount of investments to US$ 792 million for the first half of 2025.
The realised local investments in the first half of this year represented an13% growth compared to US$ 252 million recorded in the same period of 2024. The BOI approved 57 new projects during the first half of 2025, with an estimated investment value of US$ 569 million, of which USD 320 million represents foreign investment. The approvals comprise 31 greenfield projects and 26 expansion projects from existing enterprises. Once operational, the projects are expected to generate over 14,000 employment opportunities, further contributing to the country’s economic growth and job creation efforts.
Key contributing sectors to this growth include Port Development, manufacturing, tourism & hospitality, and services including Hub operations. Several high-impact projects have reached implementation stage, while new proposals have been approved under fast-tracked facilitation mechanisms, signaling robust investor engagement.
“This upward trend reflects growing investor confidence and the effectiveness of ongoing economic and policy reforms aimed at fostering a business-friendly environment,” Chairman of the BOI Arjuna Herath said.
The achievements Herath said aligns with the country’s strategic efforts to position itself as a competitive investment destination in the South Asian region and places Sri Lanka on a strong footing to achieve its annual FDI targets, reflecting continued global interest in the country’s strategic investment sectors. The growth in local investor activity he said demonstrates increased confidence in the domestic economy. This indicates a proactive commitment from local entrepreneurs and businesses to expand and diversify within Sri Lanka, further contributing to national development goals.
“With new policy frameworks, streamlined facilitation processes, and improved investor confidence via good governance, we are actively addressing investor needs and ensuring Sri Lanka remains an attractive hub for sustainable investments,” Herath said.
The service provided to investors through the Investor Facilitation Center (IFC) and the re-establishment of Investor Facilitation Coordination Committee provides one-stop solutions for addressing investor concerns, the introduction of digital solutions for investor services have all contributed to this surge.
Looking ahead, the BOI remains focused on capitalising on the momentum by accelerating project implementation, improving ease of doing business, and aligning investment opportunities with national development priorities such as green growth, digital transformation, and export diversification.
However, achieving the US$ 1.8 billion FDI target this year seems an up-hill task for the apex agency for investment promotion although it is confident of crossing the International Monetary Fund’s target of US$ 1 billion and coming close to the US$ 1.8 billion target this year. “Though it’s a tough call we are working hard to get closer to it,” Herath said presenting the roadmap to achieve the goal.
Granting STP concession to be announced next month, outreach programs, facilitating investments in the renewable energy sector, setting up investment promotion zones for tourism, IT, textile, pharmaceutical, dairy and fishing are some of the major investment promotion initiatives planned by the BoI.
