FDI more than doubles in 1H2025, signalling investor confidence

• FDI inflows reached US$ 507mn
• Local investment climbed to US$ 285mn
• BOI approved 57 new projects with combined estimated investment value of US$ 569mn

Sri Lanka’s foreign direct investment (FDI) inflows have more than doubled in the first six months of 2025, reaching US$ 507 million, a stark 101 percent increase from the US$ 252 million recorded in the same period last year. 

The impressive growth, announced in data released by the Board of Investment (BOI) of Sri Lanka, underscores a renewed and growing confidence among international investors in the nation’s economic trajectory and the efficacy of its ongoing policy reforms.

This substantial uptick in realised FDI aligns with the country’s strategic ambitions to establish itself as a premier investment hub in the South Asian region. The strong first-half performance positions Sri Lanka favourably to meet its annual FDI targets, reflecting sustained global interest in its key strategic sectors.

Driving this growth are significant investments in port development, manufacturing, tourism and hospitality, and services, including hub operations. The BOI has noted that several high-impact projects have now entered the implementation phase, while a steady stream of new proposals has been approved through streamlined, fast-tracked facilitation mechanisms, indicating vigorous investor engagement.

The positive investment climate is not limited to foreign capital. Local investor activity has also shown solid momentum, with realised local investment climbing to US$ 285 million in the first half of 2025, a 13 percent increase from the US$ 252 million recorded in the corresponding period of 2024. This demonstrates a proactive commitment from domestic entrepreneurs and businesses to expand and diversify within the Sri Lankan economy.

Further bolstering this growth, the BOI has approved 57 new projects in the first half of the year, with a combined estimated investment value of US$ 569 million. Of this, US$ 320 million is from foreign sources. These new ventures, comprising 31 greenfield projects and 26 expansion projects by existing enterprises, are projected to create over 14,000 employment opportunities, providing a significant boost to the nation’s workforce and economic expansion.

Commenting on the encouraging figures, BOI Chairman Arjuna Herath stated, “The continued rise in FDI demonstrates the global investor community’s growing trust in Sri Lanka’s economic trajectory. With new policy frameworks, streamlined facilitation processes, and improved investor confidence via good governance, we actively address investor needs and ensuring Sri Lanka remains an attractive hub for sustainable investments.”

The government’s commitment to creating a more conducive investment landscape is further evidenced by the re-establishment of the Investor Facilitation Coordination Committee (IFCC). 

Chaired by the Secretary to the Treasury, Dr. Harshana Suriyapperuma, the IFCC aims to provide one-stop solutions to address investor concerns. This, coupled with the continuous service provided by BOI’s Investor Facilitation Center (IFC) and the introduction of digital solutions for investor services, have  been instrumental in the recent surge in investment.

Looking ahead, the BOI is focused on capitalising on this positive momentum. The agency noted that it will continue to accelerate project implementation, enhance the ease of doing business, and align investment opportunities with national development priorities such as green growth, digital transformation, and export diversification.