98 percent increase over corresponding period last year:

FDI inflows hit $ 413 m in six months

by Uditha KUMARASINGHE

The Board of Investment (BOI) approved 92 projects and signed agreements for 95 other projects this year.

Thirty-six projects commenced commercial operations according to the Annual Performance Report of the Ministry of Economic Development presented to Parliament yesterday.

The 92 approvals include the expansion of existing projects where agreements were signed and commercial operations commenced including approvals granted and or agreements signed in 2010 or prior to 2011.

Foreign Direct Investment (FDI) inflows from January 1-June (first half of 2011) reached US$ 413 million, a 98 percent increase compared to the corresponding period in the first half in 2010. The FDI inflows for the first half of 2010 were US$ 208 million, the report stated.

According to the report the major sector for the FDI during the period was “Hotels and Restaurants” amounting to 47 percent of the total FDI, followed by the “Telephone and Telecommunication Network” and “Manufacturing” sectors with 24 percent and 20 percent contribution.

In terms of the countries of investment, Mauritius led others with 33 percent of the FDI inflows in the first half of 2011 and Hong Kong and India 16 percent and 11 percent.

Foreign Direct Investment (FDI) inflows under the Tourism sector, particularly from “Hotels and Restaurants” projects to be set up in Colombo, have increased remarkably with the entry of international hotel chains and global investors, from the beginning of this year.

Tourism projects with an estimated FDI of US$ 362 million were approved during the first nine months of this year and there was a substantial increase in the number of projects approved in the corresponding period in 2010.

The total employment opportunities from January-August 2011 was 3,358 of which 60 percent was within the “Services” sector, 1,999 employment opportunities followed by “Chemicals, Petroleum and Coal” (20 percent), “Textiles and Wearing Apparel” (10 percent) and “Food, Beverages and Tobacco” (8 percent) sectors with employment prospects of 658, 348 and 277.