January 26, Colombo (LNW): Sri Lanka experienced a significant upswing in foreign direct investment in 2025, with inflows climbing to US$ 1.06 billion, marking a year-on-year increase of more than 70 per cent, according to figures released by the Board of Investment.
Officials attributed the sharp rise to renewed confidence among international investors, helped by improving economic conditions, greater policy clarity and more efficient investment approval procedures. They noted that sentiment towards Sri Lanka has strengthened as macroeconomic stability has gradually taken hold.
During the year, 188 companies channelled foreign capital into the country. Of these, 24 were entirely new ventures, together accounting for US$ 134 million, while the bulk of inflows — approximately US$ 923 million — came from expansions and reinvestment by firms already operating in Sri Lanka.
Manufacturing emerged as the leading recipient, drawing nearly half of total investment, followed by port and logistics-related projects and the tourism sector. Investors from Singapore, India, France, the Netherlands and Luxembourg featured prominently among the top contributors.
In parallel, the BOI approved 146 new investment proposals in 2025, with a combined project value close to US$ 1.9 billion. Almost US$ 900 million of this amount is expected to enter the country as foreign capital over the implementation period.
Building on this momentum, the BOI has set an ambitious target of US$ 1.5 billion in FDI for 2026 and plans to roll out around 20 structured investment opportunities aimed at attracting high-value and export-oriented projects. Authorities say ongoing efforts to streamline procedures and improve coordination across government agencies are helping position Sri Lanka as a more competitive and reliable destination for global investors.
