US$ 1.5 billion FDI projects : BOI releases details

Despite external and internal setbacks, the Board of Investment of Sri Lanka (BOI) has achieved Rs. 1.8 Billion in total investments with signed and approved projects, including FDI Projects of US$ 1.5 Billion, State Minister for Investment Promotion Dilum Amunugama said.

According to a BOI statement, State Minister Amunugama said the baseline forecast is for global growth to slow from 3.5 per cent in 2022 to 3.0 per cent in 2023 and 2.9 per cent in 2024, well below the historical (2000–19) average of 3.8 per cent.

“Due to the Ukraine-Russia war, the US, and UK inflation is historically 40-45%. Further negative influences due to the Israel and Palestinian conflict will have repercussions on energy price escalation.

“In the context of the Internal macroeconomic situation, our country’s rating, the default of paying debtors, and political uncertainty send a less investor-friendly signal to the outside world at the beginning of 2022. Yet in 2023 economy was slowly but steadily pulled back from the worst economic situation post-independence era,” he said.

The State Minister further said the government’s far-sighted and politically unpopular economic stabilization measurement has provided a much-needed foundation for reforms in the institutional and regulatory front hence it has communicated positive signals to our investor community.

“The significant achievement of curbing the acceleration cost of living which has resulted in the single digit of inflation from 74% in September 2022 to 1.5 % in October 2023

“Yet as an economy, it will continue to contract in 2023, it was better than -7.8 in 2022 but in 2023 it has forecasted -2.0 negative growth. It is an arduous task to attract FDI amidst economic contraction. Yet, in the YOY comparison, BOI registered and approved FDI Investment projects increased by 122% in 2023,” he added.

State Minister Amunugama further said the significant increase in projects is due to the high value of investment in the energy sector. “Investments such as Adani Corporation, Sinopec, RM Parks with Shell, and further sectors such as ITC, BPO, Tourism, and Manufacturing are the sectors getting more investments.

“Countries such as China, India, the US, HK, UAE, France, Korea, Germany, and Singapore are the destinations invested during 2023,” he added.

Following is a breakdown of the investment projects outlined by State Minister Dilum Amunugama;

Investment Type YTD 2022
(Jan- 23rd Nov)(U$ Mn)
YTD 2023
(Jan- 23rd Nov) (U$ Mn)
% diff
Foreign 695 1547 122%
Local 1109 258 -77%
Total 1804 1805 0%