Sri Lanka’s Central Bank records increase in FDIs and foreign borrowings of BOI companies in 2018
The Central Bank of Sri Lanka has reportedly noted a considerable increase in foreign direct investments (FDIs), including foreign borrowings of the country’s Board of Investment (BOI) companies, in 2018.
Total FDI inflows, inclusive of foreign loans received by companies registered with the Board of BOI, amounted to US$ 2,136 million in 2018, in comparison to US$ 1,910 million in 2017, reports state.
Meanwhile, FDIs, excluding foreign loans obtained by BOI companies, has also recorded an increase to US$ 1,611 million in 2018, from US$ 1,373 million in 2017, the Central Bank of Sri Lanka Annual Report for 2018 has stated.
FDI inflows, excluding foreign loans to BOI companies, had reportedly comprised US$ 1,148 million of net inter-company debt, US$ 225 million of reinvested earnings and US$ 238 million of net investments in equity during the year.
Foreign loans obtained by BOI companies from non-related parties amounted to US$ 525 million, in 2018, compared to US$ 538 million in 2017.
According to the report, FDI inflows in 2018 were mainly received by the Hambantota International Port Group (Pvt) Ltd, amounting to US$ 828 million, of which US$ 682 million was received by the government as proceeds of the long lease of Hambantota port during the year.
In 2018, FDI inflows were channeled largely to projects related to ports, telecommunications, housing and property development and hotels, while FDI inflows to the manufacturing sector remained moderate, the report has added.
Based on the country of immediate investor, the top five source countries of FDIs in 2018 were China, Hong Kong, India, Malaysia and the United Kingdom.
OSL take:
The increase in FDIs and foreign borrowings by BOI companies in Sri Lanka in 2018 as noted by the annual report of the Central Bank of Sri Lanka indicates the positive business activities that are a result of healthy economic conditions. Sri Lanka is expected to see a quick recovery from the negative impact from the Easter Sunday attacks last month. The government of Sri Lanka has already taken several measures to help the economy to bounce back. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/14052019/Z_4 |