BOI says significant surge in FDIs in 1Q amid stable investment climate

• In 1Q, realised FDI up 90% to $ 203 m
• 41% into port development sector, 34% into manufacturing, 20% into tourism and leisure
• Realised local investment in 1Q up 32% to $ 87 m
• Value of investment proposals received up 18% to $ 4.6 b, inclusive of $ 3.9 b in foreign investment
• In 1H, BOI approves 48 projects comprising 28 greenfield applications and 20 expansion projects with total investment value of $ 499 m; up 28% YoY

BOI Chairman Arjuna Herath

The Board of Investment (BOI) of Sri Lanka yesterday announced an increased inflow of Foreign Direct Investment (FDI) to the country in comparison to the previous year, consolidating the stable and investor-friendly economic environment. 

The BOI highlighted that the renewed confidence of international investors has resulted in the receipt of new investment proposals given the Government’s steadfast commitment to macroeconomic stability and the establishment of consistent policy frameworks to facilitate investments in Sri Lanka.

As of June 2025, the BOI said it received 79 investment proposals, including 40 greenfield projects and 39 proposals for the expansion of existing ventures. The total estimated value of these investments stands at $ 4,669 million, with $ 3,899 million accounted for as foreign investment and the remaining $ 770 million as local investment. This reflects an 18% increase compared to the investment proposals received 

during the corresponding period in 2024. 

The investment proposals span a wide range of sectors and originate from various countries across the globe. Notably, a rise was observed in greenfield investments directed towards the manufacturing sector, including tyres and tracks for export, mineral processing, and apparel related projects, as well as energy, real estate, including condominium and mixed-use developments, hotel projects, and agricultural-related ventures including dairy farming, seaweed, and seafood processing, and crop cultivation. 

These investment proposals have originated from a diverse range of countries, including Canada, China, India, Singapore, Switzerland, the Czech Republic, Australia, Saudi Arabia, the Netherlands, South Korea, and several others.

A notable increase in interest was observed among existing ventures seeking to expand their operations, securing $ 322 million estimated investment proposals out of $ 4.6 billion. In particular, major players in the telecommunications sector have announced expansion plans in this year. 

Additionally, several enterprises involved in information and communication technology (ICT), garment manufacturing, rubber products, port development, and apartment complex construction have submitted applications for project expansions.

All investment proposals received by the BOI are subject to a comprehensive evaluation process, with approvals granted upon receiving clearance from the relevant line agencies. Accordingly, during the period from January to June 2025, the BOI has approved 48 projects — comprising 28 greenfield applications and 20 expansion projects — with a total investment value of $ 499 million. This reflects a 28% increase compared to the corresponding period in the previous year. These approved investments are expected to generate approximately 10,000 employment opportunities upon commercialisation.

The BOI also carries out data collection on realised FDI and local investment values. During the first quarter of 2025, realised FDI amounted to $ 203 million, marking a significant 90% increase compared to $ 107 million recorded in the first quarter of 2024. Of the total realised FDI during the period, 41% was directed towards the port development sector, followed by 34% into manufacturing and 20% into tourism and leisure, with the remaining share allocated to sectors such as ICT, agriculture, property development, and telecommunications.

In addition, realised local investment during the same period reached $ 87 million, reflecting a 32% increase from $ 66 million in the first quarter of the previous year.

The BOI said its enterprises make a significant contribution to the Sri Lankan economy through foreign fund inflows, local investments, export earnings, and employment generation. According to available data, BOI export-oriented enterprises recorded merchandise exports amounting to $ 2.65 billion during the period January to April 2025 — a 7% increase from a year ago. This performance accounts for 59% of national merchandise exports and 73% of national industrial exports during the corresponding period.

It also said renewed investor confidence has significantly boosted interest in investing in Sri Lanka, which is reflected in the number of inbound delegations hosted by the BOI during the year. Notably, in the first six months alone, the BOI hosted many delegations from countries including from Japan, Switzerland, the UK, India, China, Bangladesh, Korea, the UAE, the Netherlands, Bahrain, Thailand, Pakistan, and Vietnam, along with engagements resulting from the recent high-level visit to Germany.

“These positive trends underscore the growing confidence in Sri Lanka as a competitive investment destination and reflect the pivotal role of the BOI in driving sustainable economic growth through strategic investment facilitation,” the statement added.