October 21, Colombo (LNW): Sri Lanka has recorded a significant surge in foreign direct investment (FDI) into projects approved by the Board of Investment (BoI), with inflows reaching US$ 827 million between January and September 2025.
The figure represents a striking 138 per cent increase compared to the same period in the previous year, underscoring renewed investor confidence in the country’s economic landscape.
According to the BoI, the uptick in investment has been driven by a combination of fresh capital inflows, reinvested profits, and strategic borrowings by foreign-owned enterprises. The composition of the total includes US$ 133 million in direct equity contributions, US$ 132 million in reinvested earnings, US$ 231 million in intra-company loans directed toward investment, and US$ 331 million obtained through long-term foreign commercial borrowing.
Of the total FDI reported for the period, US$ 124 million came from new project agreements signed in 2025, while the majority—over 85 per cent—was derived from existing companies reinvesting or expanding their operations.
Officials at the BoI attribute the positive performance to sustained improvements in the investment climate, including regulatory reforms, enhanced investor services, and political stability. They note that the latest figures signal not only a rebound in investor sentiment but also a willingness among established enterprises to deepen their footprint in the country.
This level of capital inflow is being seen as a vote of confidence in Sri Lanka’s long-term economic prospects, especially in sectors such as manufacturing, services, logistics, and renewable energy—areas that have seen rising interest from both regional and global investors.
