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Sri Lanka records US$ 800 million in FDIs for 2020 despite Covid 19 challenges

Sri Lanka records US$ 800 million in FDIs for 2020 despite Covid 19 challenges

Sri Lanka’s Board of Investment (BOI) has reportedly stated that the country has secured US$ 800 million in foreign direct investments (FDIs) in 2020 despite the global Covid 19 pandemic. This observation was made by BOI Director-General, Sanjaya Mohottala in an interview with the Daily News Business.
He has further noted that there were commitments for another US$ 200 million for the year.
Mohottala has said that the outlook for 2021 looks impressive with several mega development projects in the pipeline. “One area that will bring in around US$ 150 million would be in the cement manufacturing and bagging sector with plans for Kankesanthurai and Hambantota.”
In addition, there will be two large wind power parks planned for Pooneryn in Sri Lanka’s Northern Province where international tenders will be called this year to generate over 200 MW of power. In addition, Sri Lanka will also tender to set up solar power generation parks.
There will also be international companies that will be investing to set up two sugar refineries in the North and East Provinces.
“We need to convert projects that are signed and in the pipeline to actual projects and sadly the conversion ratio has been low,” Mohottala has said, adding that once approval is granted for projects by the BOI, the execution of projects will not be delayed unlike during previous years.
According to Mohottala, long term plans are underway to improve Sri Lanka’s standing in the Ease of Doing Business index. “We plan to make it to around 60 in two years.”

OSL take:

The receipt of foreign investments even amidst the Covid 19 pandemic is indicative of the level of confidence foreign businesses/investors have on Sri Lanka. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region. Also, Sri Lanka figures prominently in China’s Belt and Road Initiative. All these indicate the growth of Sri Lanka as a business/investment destination. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.

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Article Code : VBS/AT/20210106/Z_3

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