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Sri Lanka targets $ 879 million in local investments in 2025

Sri Lanka targets $ 879 million in local investments in 2025

The Morning: Sri Lanka expects about $ 879 million in investments from local investors in 2025 based on government incentives and an improved investment climate in the country, Economic Development Deputy Minister Prof. Anil Jayantha Fernando said.
Speaking in Parliament on Tuesday (7), he said that the government forecasts $ 879 million from local investors, an assumption based on the current situation and past trends.
He also added that the figure is forecasted based on the incentive packages that the government will provide, improvement in the investment climate and maintaining policy consistency.
Fernando said that the government will provide a conducive environment for local investors where they can have a level playing field with improved ease of doing business.
Moreover, he said that forecasts for foreign direct investments (FDIs) are also made based on the assumptions made for local investors.
However, Fernando said that the government is trying to move away from these assumptions as they have not been able to attract sufficient FDIs in the past based on these assumptions.
“We are trying our maximum to get at least $ 2 billion in FDIs annually, while priority will be given to investments to bring in new technology and capital requirements,” he added.
According to a response tabled at parliament by Finance and Planning Deputy Minister Harshana Suriyapperuma in December, the Board of Investment (BOI) has signed 74 projects in 2024, with an estimated investment of $ 608 million.
The statement said that the BOI signed 41 new projects and 33 project extensions between January and December 2024, the estimated total investment in the 74 projects is $ 608 million, which is only a mere $ 110 million growth in the second half of the year after recording $ 498 million investments in the first half.

OSL take:
Sri Lanka’s economy is on an expansion path in-line with the country’s target of becoming a hub in the South Asian region. Sri Lankan authorities are also working to improve the ease of doing business environment in the country while engaging in promotional campaigns to attract more investments into the country. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries have added to Sri Lanka’s attraction as an emerging business destination. It is in such a backdrop that Sri Lanka had signed over 40 new projects and over 30 project extensions in the country that all indicate a positive economic growth as well as the country’s increasing business potential. The expanding business/investment opportunities in all key economic sectors therefore presents lucrative ventures for foreign businesses/investors. Given Sri Lanka’s economic development path and the target for local investments this year, foreign businesses could also look at forming partnerships or joint ventures with local businesses in order to further expand operations locally and internationally.

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Article Code : VBS/AT/20250110/Z_1

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