Foreign investment flows surge to US $ 827mn in first 9 months

138% YoY surge led by ports, manufacturing and gaming projects

• US $ 124mn was linked to new project agreements signed in 2025, while balance came from reinvestments and expansions by ongoing investors
• Local capital also contributed US $ 326mn across 163 BOI projects during period
• Large-scale projects dominated inflows
• BOI approved 104 new and expansion projects between Jan. and Sept. 2025, valued at US $ 1.06bn

Arjuna Herath

Foreign capital continued to flow into Sri Lanka at a brisk pace in the first nine months of 2025, with inflows reaching US $ 827 million, the Board of Investment (BOI) said yesterday, marking a 138 percent jump compared to the same period in 2024.

The inflows, which include equity, reinvested earnings, intra-company borrowings and long-term foreign commercial loans, highlight both new investor interest and the commitment of existing enterprises to expand operations, the BOI noted.

Of the total, US $ 124 million was linked to new project agreements signed in 2025, while the balance came from reinvestments and expansions by the ongoing investors. Local capital also contributed US $ 326 million across 163 BOI projects during the period.

“The growth of foreign capital inflows demonstrates the renewed confidence the investors have in Sri Lanka’s business environment. 

The strong participation of existing enterprises reflects the trust built through economic and political stability, transparency and good governance. Both new and existing projects have contributed to this performance, underscoring the impact of reforms and ease of doing business initiatives implemented by the government and BOI,” BOI Chairman Arjuna Herath said.

Large-scale projects dominated the inflows. Colombo West International Terminal (Pvt.) Ltd invested US $ 229 million in state-of-the-art port infrastructure under a strategic development agreement, expanding the Port of Colombo’s capacity by 3.2 million TEUs. 

CEAT OHT Lanka (Pvt.) Ltd, a new subsidiary of India’s CEAT Ltd, contributed US $ 111 million to manufacture off-the-highway tyres for export. 

Michelin Lanka (Pvt.) Ltd reinvested US $ 72 million, while Bluehaven Services (Pvt.) Ltd, part of Melco Resorts and Entertainment Ltd, invested US $ 85 million in gaming facilities at the City of Dreams Sri Lanka resort. A major BOI property development project added US $ 47 million.

“Projects such as Colombo West International Terminal, CEAT OHT Lanka, Michelin and Melco not only bring capital but also create employment, transfer technology and integrate Sri Lanka into global value chains,” Herath added.

Beyond the five largest projects, another 150 BOI-approved enterprises contributed US $ 283 million, reflecting a broad-based participation across manufacturing, services and infrastructure sectors.

The BOI also approved 104 new and expansion projects between January and September 2025, valued at US $ 1.06 billion, split nearly evenly between foreign (US $ 540 million) and local (US $ 520 million) investment. Projects span rubber product manufacturing, solar power, medicinal crop-based exports, cement processing, dairy production, ICT, petroleum refining and advanced manufacturing.

With several new proposals in the pipeline, the BOI said it expects total foreign inflows for 2025, including foreign commercial loans, to exceed US $ 1 billion. 

The investment promotion agency said it would continue to focus on facilitating approvals, strengthening investor protection and positioning Sri Lanka as a competitive and sustainable hub for international investment in the region.