BOI reports record growth in foreign and local investments, signalling renewed global confidence in Sri Lanka’s economy
Sri Lanka recorded a 90% year-on-year increase in realised Foreign Direct Investment (FDI) during the first quarter of 2025, reaching $203 million compared to $107 million in Q1 of the previous year, according to the Board of Investment (BOI). This growth reflects renewed investor confidence driven by a stable macroeconomic environment and consistent policy frameworks.
The BOI stated that a large share of the FDI was directed into port development (41%), followed by manufacturing (34%) and tourism and leisure (20%), with the remaining going into sectors like ICT, agriculture, and property development. Realised local investment also grew by 32% during the same period, reaching $87 million.
By the end of June 2025, the BOI had received 79 investment proposals worth $4.67 billion — an 18% increase from the same period last year — of which $3.9 billion came from foreign sources and $770 million from local investors. These proposals span a wide range of sectors, including manufacturing for exports, energy, real estate, agriculture, and hospitality.
Investments originated from diverse countries such as Canada, China, India, Singapore, Switzerland, Australia, and the Netherlands, showcasing Sri Lanka’s appeal as a global FDI destination. Additionally, $322 million worth of proposals came from existing enterprises planning expansions.
In the first half of 2025, the BOI approved 48 projects — 28 greenfield and 20 expansion projects — with a combined investment value of $499 million, marking a 28% increase from last year. These projects are expected to generate approximately 10,000 new jobs once operational.
Export activity also grew, with BOI-supported enterprises recording $2.65 billion in merchandise exports from January to April 2025 — a 7% year-on-year rise — accounting for 59% of total national merchandise exports and 73% of industrial exports.
Increased investor interest is further reflected in the number of foreign delegations visiting Sri Lanka in 2025, with countries such as Japan, the UK, India, China, Korea, and the UAE engaging in investment-related discussions. The BOI emphasized that these positive trends underscore Sri Lanka’s growing reputation as a competitive FDI destination and the BOI’s role in facilitating sustainable economic growth.