Sri Lankan government targeting US$ 1.5 billion worth FDIs for 2017
A senior official of the Sri Lankan government has reportedly said that Sri Lanka is targeting US$ 1.5 billion worth of foreign direct investments (FDI) for 2017, which will be a two-fold increase from last year.
“Up to now we have secured 1 billion US dollars and another 500 million is in the process of being finalised. Most of the investment is from existing investors and not new investments,” Chairman, Board of Investment (BoI), Dumindra Ratnayaka has told a Ceylon Chamber of Commerce (CCC) Forum on Tuesday.
“We are going to get US$ 5 billion in FDI by 2020, quite an optimistic target.”
FDIs into Sri Lanka were US$ 808 million in 2016.
Analysts have been quoted in the local media as saying that investors want consistent policy not so much the tax breaks and don’t want the policy to change each time the government changes.
Ratnayaka has said that a 150-acre industrial park will be set up as a Public Private Partnership at a cost of RS. 3.5 billion with a company from Thailand.
The Park would be completed by end 2018 and operated by Rojana Industrial Park Public Limited of Thailand, a joint venture between Japan’s Nippon Steel and Thailand’s Vinichbutr Group.
“To bring in investors we need parks of this nature. The existing parks are almost full,” the BoI Chief has said.
“Under phase one we expect an investment in the excess of 500 million US dollars.”
Vinichbutr operates about 500 companies in their industrial zones in Thailand and are looking to draw investors making electronic home appliances like television sets initially and later get auto parts manufacturing.
The Sri Lankan government’s target of US$ 1.5 billion FDIs for 2017 and US$ 5 billion by 2020 indicates a buoyant economy with ample investment opportunities. The government in its 2018 Budget proposals has also included a host of incentives for investors who enter into the country. Sri Lanka during the next few years would therefore be the best destination for foreign investments.
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