FDI inflows: Moving beyond numbers

LAST month, the BOI announced that Sri Lanka registered a remarkable 101% year-on-year surge in realised Foreign Direct Investment (FDI) inflows during the first half of 2025, reaching about $ 507 million.

- 

The investment promotion agency had pointed out the impressive performance marks the country's strongest first-half FDI achievement in recent years and reflects deepening investor confidence in Sri Lanka's economic reforms and investment climate. It is also reported that the BOI received around $ 4.7 billion investment proposals during the first half of 2025.

The prevailing stable political and economic structure in the island creates a highly favourable and conducive environment to attract FDIs compared to the period of 2022-24, which was associated with non-ending instability and uncertainty. Prior to the national elections last year, the NPP was claiming that a government under their command has better prospects of attracting substantially higher levels of FDIs due to their commitment to end the entrenched culture of bribery and corruption in the country. It has been universally acknowledged that a significant growth in FDI inflows would undoubtedly enhance the standard-of-living of the nation besides accelerating economic growth.