Sri Lanka optimistic of recording thrice the target of Foreign Direct Investments
The Morning: Despite the investment target set by the Ministry of Finance is $ 1 billion for 2024, State Minister of Investment Promotion Dilum Amunugama is confident that the State Ministry would be able to reach its target triple the amount.
State Minister Amunugama said: “The Cabinet nod was granted recently for the Adani Group for solar and wind projects of 500 megawatts mounting to $ 800 million and the refinery project that is to be commenced at Hambantota is an investment of $ 2.8 billion while there are several other investments are yet under discussion and eventually would exceed $ 3 billion.”
He made these remarks at the press conference held at the President Media Centre (PMD) on 10 May.
State Minister Amunugama noted that the conventional way of working with investments was that the State Ministry facilitated the investors who enter the country through the foreign embassies, however, at present the State Ministry is, in fact, working on reaching the investors directly with the intention of investment promotion.
“Accordingly, the investment agents or country representative titles were granted to Sri Lankan entrepreneurs who are residing in foreign countries in creating a global forum for investment promotions. These investment promotions have been conducted thus far in Great Britain, Canada, France, Italy and Germany.”
State Minister Amunugama explained that these measures would pave the way in exceeding its target for this year along with the aforementioned projects despite the criticism from the Opposition at the most recent Parliamentary session.
He noted that the country has an investor friendly atmosphere due to factors such as political stability.
Also, the State Ministry is eying to establish private economic zones in areas such as Trincomalee, Mankulam with public-private partnership.
Within the second half of the last financial year (FY 2023) alone, the State Ministry was able to secure $ 1.8 billion worth investment agreements, said Amunugama.
OSL take:
Sri Lanka’s ongoing economic activities and the target of becoming a regional hub have resulted in the expansion of business/investment opportunities in all key economic sectors. The Sri Lankan government is also engaged in attracting more FDIs to the country through promotional campaigns as well as through incentive schemes. The country’s strategic positioning in the Indian Ocean as well as the many trade agreements as well as concessions enjoyed by the country with many countries have further boosted Sri Lanka’s attraction as a growing regional hub. The strength and resilience shown by Sri Lanka’s private sector businesses amidst challenging economic conditions and the performance and profits recorded by the sector serve as indications of the overall strength, resilience and growth of Sri Lanka’s economy. With a steady increase in business confidence in Sri Lanka and the expanding opportunities in the country, foreign businesses/investors could confidently explore the growing opportunities and business potential in the country. Foreign businesses/investors could also look at forming partnerships or joint ventures with local businesses with the aim of further expansion.