Despite the current negative economic trend Sri Lanka will end the drought of Foreign Direct investments as the Board of Investment is confident of securing over USD 1 billion FDI to the country this year.
She also said that this would be the highest FDI figure to be recorded after three years. Sri Lanka recorded USD 780 million FDI in 2021 and in 2020 this figure was at USD 687 million. The highest recent FDI were recorded in 2019 (USD 1,189 million) and in 2018 (USD 2.3 billion)
She said that the investment target set up for 2011 first quarter was USD 169 million but the BOI was able to achieve USD 228 million. These include a total of 43 new projects by 34 new companies and one project has already commenced commercial operation and four more projects are awaiting implementation. “The total employment generation from these projects would be in the excess of 7,400.”
The main areas of FDI were for renewable energy projects and also for the manufacturing (including apparels) sector. She also said that several new mega projects are under discussion and most of the investors who attend them were not too worried and concerned about the current economic situation as they were confident that Sri Lanka would bounce back soon. Also the current economic recession is not only happening in Sri Lanka but all over the world. India is also emerging as a major investor to Sri Lanka with Adani being engaged in Colombo Port and renewable energy projects while HCL Technologies India too would be reinvesting in Sri Lanka with a pledge made that they would increase the local workforce to 5,000. “They all sent out a positive message that Sri Lanka is open and is still a preferred destination for investment.”
Weerakone said that one area where BOI companies have expressed concern were the power cuts that were imposed on BOI zones. “Earlier we managed to exclude the power cuts to BOI zones but today three hour morning power cuts are imposed on them.”
“To overcome this we have made arrangements with Lanka IOC, Ceylon Petroleum and John Keells Logistic and other private parties allowing BOI companies to pay for fuel direct in US dollars. “This scheme is now progressing.”
She also said that there is an overwhelming response for the Eravur Fabric Processing Park in Batticaloa district where already an Indian company has pledged USD 35 million and several local investors too have signed up. This zone comprising 10 factories will create about 5,000 direct and a large number of indirect jobs and the park is expected to save around $500 million annually needed to import fabric accessories.