BOI on track to surpass US $ 1bn FDI in 2025 as inflows surge

• BOI chief says “very confident” that SL will “get to yielding better results as we go on, as we build momentum”
• By end-July, BOI cleared 63 projects with a combined value of US $ 776mn
• Political stability, policy consistency and efficient digital engagement are presented as core components of country’s value proposition
• Looking ahead, BOI said it plans to expand its physical infrastructure to accommodate new investments

Sri Lanka’s Board of Investment (BOI) expects foreign direct investment (FDI) to surpass US $ 1 billion this year, supported by the rising inflows, new approvals and ongoing reforms, officials said on Monday.

BOI Chairman Arjuna Herath said the country realised FDI of US $ 607 million in the first seven months of 2025, more than double the level in the same period last year and nearly eclipsing the full-year 2024 total of US $ 614 million. “We are on a sustained effort to realise FDI and we are very confident that we will get to yielding better results as we go on, as we build momentum. By the end of the year, our aim is to surpass a US $ 1 billion FDI to this country,” Herath said. The outlook is backed by a strong pipeline of approved investments. By end-July, the BOI cleared 63 projects, with a combined value of US $ 776 million, of which 34 were new greenfield ventures, signalling fresh investor interest and 29 were expansions of the existing operations, reflecting investor confidence. These include US $ 500 million in FDI and US $ 276 million in local investment.

The investments have already created 956 new jobs this year, while exports from the BOI-managed companies reached US $ 4.561 billion in the January-July period. The officials attributed the surge to a broader “transformation journey” at the BOI, with digitalisation identified as a key driver. 

Treasury Secretary Dr. Harshana Suriyapperuma said the reforms align with a wider national strategy to raise FDI and exports. Dr. Suriyapperuma emphasised that Sri Lanka is now offering investors more than just tax incentives.  “Political stability”, “policy consistency” and efficient digital engagement are presented as core components of the country’s value proposition. 

“This will provide Sri Lanka the opportunity of competing well within the region to attract investors,” he said.

Looking ahead, the BOI said it plans to expand its physical infrastructure to accommodate new investments.  Herath said at least two new industrial zones would be launched this year, with a total of seven zones due for completion by the first quarter of 2026.  The expansion is aimed at ensuring investment benefits reach beyond Colombo, fostering development and employment across provinces.  (NF)