Twofold increase in FDI in 2012 with 160 projects - Economic Development Ministry

by Uditha Kumarasinghe

The Economic Development Ministry through the Board of Investment (BOI) has attracted Foreign Direct Investments (FDI) worth over US$ 2 billion in 2012 which is a twofold increase compared to the US$ 1 billion worth FDI received last year.

According to the performance report 2012 by the Economic Development Ministry, the BOI from January to September this year has approved 160 projects with an anticipated investment of Rs.600,638 million. The number of employment opportunities will be around 42,943.

The BOI has also signed agreements with 112 entrepreneurs from January to September anticipating an investment of Rs. 331,629 million.

It will generate 27,490 employment opportunities.

Meanwhile, during the first nine months of 2012, the BOI has entered into agreements in respect of 21 enterprises with an estimated investment of US$ 384 million confirming the increasing confidence placed by investors. The BOI from January to September has granted approval for tourism projects with FDI, estimated at US$ 1,039 million.

The FDI from January to June 2012 amounts to US$ 452 million which is an increase of 9 percent over and above the amount last year. In achieving this progress, 45 percent contribution has been realised from the infrastructure and 28 percent from production with 19 percent from Hotels and Restaurants, the report said.

When flow of FDI is taken into consideration, Hongkong State leads with a contribution of 24 percent, followed by India with an investment of 22 percent and Mauritius 9 percent. With the entering of world renowned international hotel chains, a significant increase is seen in the flow of FDI in the tourism sector. It is expected that investments worth around US$ 1 billion will be made through the extra special tourist projects, the report stated.