BOI says realised FDI up 138% YoY to $ 827 m YTD end-Sept.

• Expresses optimism total FDIs for 2025 including foreign commercial loans for investment will exceed $ 1 b

The Board of Investment of Sri Lanka (BOI) yesterday announced that Foreign Direct Investment (FDI) inflows including foreign commercial loans for investments to BOI-approved enterprises have reached $ 827 million from January to September 2025, marking a remarkable 138% increase compared to the corresponding value during the period in 2024.

This investment inflow came from four sources: Equity capital – $ 133 million, reinvested retained earnings – $ 132 million, intra-company foreign borrowings for investments – $ 231 million, long term foreign commercial loans for investments– $ 331 million.

Of the total inflows, $ 124 million was secured through project agreements signed with the BOI in 2025, while the balance was generated from reinvestments and expansions by existing enterprises. This performance reflects both the growing confidence of new investors and the continued commitment of existing investors to expand their operations under a strengthened business environment.

In addition, local investment to the value of $ 326 million was realised from 163 BOI projects, during the first nine months of 2025.

Major investments driving growth

The largest contributor to Foreign Direct Investment inflows during the period was Colombo West International Terminal (CWIT) Ltd., which invested $ 229 million in state-of-the-art port infrastructure. Established under a Strategic Development Project Act, agreement signed in 2022, CWIT is an investment from Adani International Port Holdings Ltd., (India) and John Keells Holdings PLC in partnership with the Sri Lanka Ports Authority. Once completed, the West Container Terminal at the Port of Colombo will expand the port’s capacity by 3.2 million TEUs, reinforcing Colombo’s role as a key transhipment hub in South Asia.

CEAT OHT Lanka Ltd., established as a new company in Sri Lanka, a subsidiary of India’s CEAT Ltd, contributed $ 111 million to produce off-the-highway (OHT) tyres for export markets, further consolidating Sri Lanka’s position as a competitive tyre manufacturing base.

Michelin Lanka Ltd., continued to reinvest, channelling $ 72 million from its parent into its Sri Lankan operations, while Bluehaven Services Ltd., a subsidiary of Melco Resorts and Entertainment Ltd., (Hong Kong), invested $ 85 million in developing and operating gaming facilities at the City of Dreams Sri Lanka integrated resort project.

Additionally, a major BOI property development project infused $ 47 million, supporting Colombo’s ongoing urban development drive.

Together, foreign capital inflows from these five projects accounted for 66% of the total inflows recorded this year. Beyond these, another 150 BOI-approved enterprises collectively contributed $ 283 million, demonstrating broad-based investor participation across multiple sectors.

Investor confidence and economic stability

BOI Chairman Arjuna Herath said: “The growth of foreign capital inflows to $ 827 million in the first nine months of 2025 demonstrates the renewed confidence 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 impressive performance, underscoring the impact of reforms and ease of doing business initiatives implemented by the Government and the BOI.”

“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. The BOI remains fully committed to facilitating strategic investments and ensuring Sri Lanka continues to attract high-value, long-term investors,” Herath added.

Strong pipeline and future outlook

Between January and September 2025, BOI approved 104 projects with a total estimated investment value of $ 1,060 million, comprising 48 new projects, 49 expansions of existing projects approved under Section 17 of the BOI Law and 7 projects approved under section 16 of the BOI Law. Of this, $ 540 million represents foreign capital and $520 million is local capital.

Approved projects span a wide range of sectors including: Rubber product manufacturing, solar power generation, mixed-use developments, medicinal crop-based manufacturing for export, cement grinding and packing, mining and processing, dairy product manufacturing etc.

Expansions were also approved in telecommunications, residential developments, training institutions, and manufacturing plants, signalling sustained investor confidence.

With several new proposals in the pipeline and the approved projects being implemented—particularly in ICT, petroleum refining, renewable energy, and advanced manufacturing—the BOI is optimistic that total Foreign Direct Inflows for 2025, including foreign commercial loans for investment will exceed $ 1 billion. The agency remains focused on enhancing facilitation measures, streamlining approvals, and strengthening investor protection, reinforcing Sri Lanka’s position as a competitive and sustainable hub for international investment in the region.