Sri Lanka’s Central Bank states H’tota Port payments and telecom infrastructure have driven FDIs in first half of 2018
Provisional data from the Central Bank of Sri Lanka has reportedly stated that the Hambantota Port transfer payments and telecommunication infrastructure have driven the growth of foreign direct investments (FDI) in Sri Lanka during the first half of 2018.
FDIs have reportedly grown to US$ 1.6 billion in the first half of 2018 from US$ 601.3 million a year earlier.
“China, India, Hong Kong, Malaysia and Sweden were the top five source countries of FDIs in the first half of 2018,” the Central Bank has stated.
According to reports, port terminals (mainly the Hambantota Port) had brought in US$ 898.2 million in FDIs from China in the first half of 2018, which is an increase from US$ 0.7 million dollars a year earlier.
Telephone and telecommunication infrastructure FDI had increased to US$ 239 million from US$ 76.2 million dollars in 2017.
Amid Sri Lanka experiencing preferential tariffs from the European Union (EU) through GSP Plus, and clients moving from China to alternative sourcing destinations to escape the Trump trade war, FDIs into textile and wearing apparel increased 76.2 percent to US$ 48.1 million from a year earlier.
FDIs in hotels and restaurants increased 16.7 percent to US$ 113.3 million from a year earlier, although the sector was also the most riskiest for local banks during the six month period with many inexperienced investors entering into the industry.
Reports further state that housing, property development, shops and offices was another major sector, receiving 205.1 million dollars in FDIs, although growth was only 3.1 percent from a year earlier.
The inflow of FDIs has been on an increase since 2015. The first half of 2018 has recorded growth of FDIs to US$ 1.6 billion in the first half of 2018 from US$ 601.3 million a year earlier. All these indicate an increase in confidence in Sri Lanka where the foreign business community is concerned. Therefore, foreign businesses could explore business opportunities in Sri Lanka.
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