$ 370 m in FDI for new hotel projects over last two months

• Govt. eyes 30 new leisure sector investments by end of 2020

By Charumini de Silva

Sri Lanka has attracted $ 370 million in Foreign Direct Investment (FDI) during the last two months, a top Minister confirmed.

“After the appointment of the present Government in November last year, we have received many fresh applications for several new tourism-related projects. During the last two months, we have received applications which altogether amount to $ 370 million worth of projects,” Industrial Export, Investment Promotion, Tourism and Aviation Minister Prasanna Ranatunga told the Daily FT.

This $ 370 million in FDIs includes the $ 250 million mixed development project by Shangri-La to build an apartment and shopping complex along Baladhaksha Mawatha in Colombo 2 (the site is behind the existing Shangri-La Hotel and One Galle Face Mall).

Ranatunga also expressed confidence in the proper revival of investment and the tourism industry, noting that the Ministry aimed to attract 30 new tourism-related investments by the end of this year.

He said that the Board of Investment of Sri Lanka (BOI) was expecting to achieve an FDI target of around $ 122 million from these 30 new tourism-related projects by the end of 2020.

Furthermore, he pointed out that there were major hotel projects, including the construction of 550 new rooms and 400 new villas. The Ministry is in the process of expediting the necessary steps to grant approval to these projects.

In addition, the Minister noted that two other major investments in the tourism sector were being discussed, with the BOI expecting an investment of $ 23 million from those projects.

However, Ranatunga declined to identify the investors or companies, noting that these projects were still being negotiated.