China leads with 24 percent contribution:

FDI inflows from Jan-Sept 2013 hit US$ 870 million

by Uditha Kumarasinghe

Foreign Direct Investment (FDI) inflows from January to September 2013 have hit US$ 870 million, a 41 percent increase compared to the US$ 615 million FDI inflows for the corresponding period in 2012.

The cumulative FDI inflow to Sri Lanka from 1978 up to the third quarter of 2013 amounted to US$ 9,397 million of which 70 percent FDIs, US$ 6,619 million had been drawn during the period from 2006 up to third quarter of 2013, Investment Promotion Minister Lakshman Yapa Abeywardena told the Sunday Observer yesterday.

The major contributing sector for the FDI during 2013 was ‘Manufacturing’, amounting to 31 percent of the total FDI followed by the ‘Port Development, ‘Telecommunication’ and ‘Property Development’ sectors with a 19, 17 and 13 percent contribution, the Minister said.

Minister Abeywardena said in terms of the countries of investment, China led other countries with a contribution of 24 percent to the FDI inflows up to the third quarter of 2013 followed by Hong Kong and Singapore which contributed 12 and 10 percent.

It is evident that 65 percent of the total FDI was from Asian countries demonstrating a shift of FDI inflows from the developed West to developing Asia.

The Minister said domestic investments have continued to grow and recorded US$ 403 million from January to September 2013. The key areas of domestic investments include Airline Services, Hotels, Telecommunications and Manufacturing sector, Textile and Apparel, he said.

The Board of Investment of Sri Lanka (BOI) has approved 118 projects from January to September 2013. The number of agreements signed during the period stands at 105 with an estimated investment of approximately US$ 2 billion. Of the 55 projects which had commenced commercial operations during January to September 2013, the estimated employment generation is over 9,500 the Minister said.