Peace, political stability and tourism help record dramatic increase:

FDI inflow tops 72 percent from 2006-2013

by Uditha Kumarasinghe

Investment Promotion Minister Lakshman Yapa Abeywardena said that of the US$ 9,918 million Foreign Direct Investments (FDIs) inflow received by Sri Lanka from 1978 to 2013, 72 percent amounting to US$ 7,140 million was received from 2006 to 2013 during the UPFA Government led by President Mahinda Rajapaksa.

The FDI inflow increased manifold after LTTE terrorism was defeated in 2009. The total FDI received from 2010 to 2013 was US$ 4,311 million, a 52 percent increase compared to the US$ 2,829 million FDI inflows from 2006 to 2009, the Minister told the Sunday Observer yesterday.

Sri Lanka attracted US$ 1.3 billion FDI last year. The prevailing peace, political stability, infrastructure development and Sri Lanka being a key tourist destination have helped record this dramatic increase.

The FDI inflow in the first quarter of this year also recorded a 20 percent increase compared to the FDI inflows of the first quarter of 2013. The set target of the Ministry is to attract US$ 2 billion FDI this year, he said.

The Minister said the FDI Per Capita after 2005 has also made a significant improvement compared to other countries in the region. The FDI Per Capita in 2012 had increased by 350 percent compared to 14.6 percent FDI Per Capita in 2005.

The FDI Per Capita growth in other countries in the region is Vietnam 297 percent, India 190 percent, Indonesia 117 percent, Korea 51 percent, Bangladesh eight percent and Thailand five percent.

Of Sri Lanka’s total export income, 65 percent was from the projects approved by the Board of Investment of Sri Lanka (BOI). Ninety-eight percent of the apparel exports are also from BOI approved projects.

The total exports by the BOI approved projects in 2013 was US$ 6,606 million, an 8 percent increase compared to the corresponding period in 2012. The employment generated by the BOI approved projects had exceeded 475,000 by the end of 2013.

Annually 10,000 new employment opportunities are added to the total figure, he said.