FDI inflows double in 1H of 2025

• BOI data reveals realised FDI surged by 101% YoY to $ 507 m; marks strongest 1H in recent years
• Approves 57 new projects valued at $ 569 m, including 31 greenfield ventures and 26 expansions; expects to generate over 14,000 jobs
• BOI Chairman Arjuna Herath credits rise to enhanced governance, streamlined approval processes and targeted reforms
• Lists ports, manufacturing, tourism, hospitality and regional service hubs as key sectors drawing investment
• Notes domestic investment sees 13% growth to $ 285 m

Sri Lanka has registered a remarkable 101% year-on-year (YoY) surge in realised foreign direct investment (FDI) inflows during the first half of 2025, reaching over $ 507 million, according to the latest data released by the Board of Investment (BOI).

This significant rebound from $ 252 million during the same period in 2024 marks the country’s strongest first-half FDI performance in recent years and reflects deepening investor confidence in Sri Lanka’s economic reforms and investment climate.

During this period, the BOI has approved 57 new projects with a total estimated investment value of $ 569 million, of which $ 320 million is foreign investment. 

These include 31 greenfield ventures and 26 expansion projects from existing enterprises.

 Collectively, these initiatives are expected to create over 14,000 jobs once operational, offering a welcome boost to employment and inclusive economic growth.

BOI Chairman Arjuna Herath attributed the strong FDI performance to both global investor confidence and domestic policy improvements. “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 are actively addressing investor needs and ensuring Sri Lanka remains an attractive hub for sustainable investments,” he stated.

Key drivers of the FDI surge include major investments in port development, manufacturing, tourism and hospitality, and service-related sectors, such as regional hub operations. Several high-impact projects have advanced to the implementation phase in recent months, while new proposals have been fast-tracked through enhanced facilitation mechanisms.

The strong inflow of foreign capital positions Sri Lanka favourably to meet its annual FDI targets and reaffirms its growing appeal as a competitive investment destination in South Asia. The uptick comes amid an ongoing recovery from recent economic shocks, with targeted policy reforms, improved investor facilitation, and strengthened governance mechanisms driving renewed interest across strategic sectors.

Local investor activity also remained robust, with realised domestic investment totalling $ 285 million in the first six months of 2025, a 13% increase from the same period last year. The rise reflects growing confidence among Sri Lankan entrepreneurs and businesses, who are responding to improved macroeconomic stability and new growth opportunities by expanding and diversifying their operations.

Enhanced investor services have also played a critical role. The BOI’s Investor Facilitation Centre (IFC), combined with the reactivation of the Investor Facilitation Coordination Committee (IFCC) chaired by Treasury Secretary Dr. Harshana Suriyapperuma, has streamlined investment procedures and offered one-stop solutions for resolving investor issues. The deployment of digital platforms to deliver end-to-end investor services has further improved the ease of doing business.

Looking ahead, the BOI aims to build on this momentum by accelerating project execution, strengthening inter-agency coordination, and aligning investment priorities with national development goals, such as green growth, digital transformation, and export diversification.

As Sri Lanka continues its path of economic stabilisation and structural transformation, the sharp rise in FDI inflows during the first half of 2025 stands as a clear signal of renewed global interest and growing investor faith in the country’s long-term economic potential.