Chinese investments account for 35% of FDIs into Sri Lanka up to September 2017
The Ministry of Development Strategies and International Trade has stated that China has accounted for 35% of foreign direct investments (FDIs) into Sri Lanka up to September this year with FDI for the full year expected to total US$ 1.36 billion.
The Ministry has said in a statement that there was a “strong uptick” in exports and FDI this year, which has been stated according to the latest 2017 data from the Export Development Board and Board of Investment.
“Data from the Board of Investment indicates a substantial uptick in FDI inflows to the country of US$ 795.5 million during January to September this year, 80% higher than the same period last year and already exceeding the full year 2016.
“FDI from China (including Hong Kong) is around 35% of FDI to date, while India is 16.4%, and Singapore is 9.3%.”
Others in the top 10 countries for FDI into Sri Lanka are Netherlands, United Kingdom, Japan, Malaysia, Sweden, and Australia.
The statement said the BOI expects FDI for the full year 2017 to total US$ 1.36 billion.
The manufacturing and services sectors have seen the larger share of FDI inflows – of US$ 397 million while the infrastructure and utilities sectors received US$ 352.5 million.
The Ministry of Development Strategies and International Trade also reportedly stated that merchandise exports grew 10.3% to US$ 9.5 billion in the 10 months to October 2017 from a year ago with monthly exports topping US$ 1 billion thrice this year.
“As Sri Lanka’s pro-growth reforms gather pace, amidst an improving external economic environment, exports and foreign direct investment have shown substantial increases this year compared to last year,” the statement has said.
Estimates in the services exports sector suggest an overall growth of 5.9% during the first eight months of the year, bringing total exports to US$ 12.5 billion.
The EDB expects export earnings for the full year (Jan-Dec) to total US$ 15 billion.
The increase in Chinese investments in to Sri Lanka would create the opportunity for local businesses to venture into the Chinese market to form partnerships for business expansions or as project investments.
|Article Code :||VBS/AT/13122017/Z_9|