Sri Lanka FDI surges 72% to $1.06 bn in 2025

26 January 2026 11:42 am Views - {{hitsCtrl.values.hits}} 6 Bookmark

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Colombo, January 26 (Daily Mirror) - Sri Lanka recorded a sharp rise in foreign direct investment (FDI) in 2025, with inflows reaching USD 1,057 million, reflecting a 72 percent increase compared to the previous year, the Board of Investment (BOI) said.

The BOI said the strong growth was driven by renewed global investor confidence, supported by improving macroeconomic stability and enhanced investment facilitation measures.

A total of 188 companies invested in Sri Lanka during the year, including 24 new projects that brought in USD 134 million, accounting for 13 percent of total FDI. The remaining USD 923 million was generated through expansions and reinvestments by existing companies.

Manufacturing attracted the largest share of inflows at 46 percent, followed by port development with 26 percent and tourism with 11 percent. Singapore, India, France, the Netherlands and Luxembourg emerged as the top source countries.

During 2025, the BOI granted approvals for 146 projects valued at USD 1,906 million, with USD 896 million expected to be in the form of foreign capital.

Looking ahead, the BOI has set an FDI target of USD 1.5 billion for 2026 and plans to launch 20 structured investment projects aimed at attracting high-quality investors.

The BOI attributed the strong performance to streamlined approval processes, closer coordination with line ministries and strengthened investor facilitation, noting that Sri Lanka is increasingly being viewed as a stable and attractive investment destination.

Comments - 6

wnamal Monday, 26 January 2026 03:45 PM

How come all this good news is not reflected in the foreign reserves. Are we deceiving the people?

2 8

Tony Monday, 26 January 2026 05:09 PM

If you add FDI into the central bank foreign reserves account, how will the company that invested the money for a project, use the money to build a factory/power plant? Foreign investor sends foreign currency (USD, EUR, etc.)-->Sent to a local commercial bank, or Converted into local currency via the FX market The company receives local currency in its bank account. The company uses it for: Capex, Salaries, Acquisitions, Working capital.

2 6

Nihal Perera Monday, 26 January 2026 06:01 PM

Yes. The devoted voters will believe anything. Sad !!

0 3

Ranga Tuesday, 27 January 2026 07:51 AM

Learn some basic economics so you will understand how FDI works

1 0

Adwani Monday, 26 January 2026 09:27 PM

Stolen funds re-invested in the same country, via offshore banking and through other channels.

1 1

Zak Tuesday, 27 January 2026 02:25 AM

Where are these Ranil / Pohottu supporters now ?

0 1

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