Sri Lanka signals strong FDI reforms intent

THE Government and the Board of Investment (BOI) have signalled a strong intent to strengthen laws, improve interagency coordination, and digitalise approval processes to make the country more competitive as a destination for Foreign Direct Investment (FDI). The reforms are aimed at building investor confidence by improving predictability, transparency, and the speed of approvals.

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BOI Chairman Arjuna Herath said realised FDI reached $ 607 million in the first seven months of 2025, more than double the inflows in the same period last year and close to the $ 614 million recorded for the whole of 2024.

"As of today, we have surpassed that. Our aim is to surpass $ 1 billion by year-end."

By the end of July, the BOI had approved 63 projects with a combined value of $ 776 million, including $ 500 million in FDI and $ 276 million in local investments.

The approvals consisted of 34 new ventures and 29 expansions, creating 956 jobs so far this year. Exports from BOI companies in the January to July period reached $4.56 billion.

Herath said the numbers demonstrated a shift in how the Government was pursuing FDI with reforms designed to fast track approvals and strengthen investor services. He made these comments at the launch of the BOI Gateway digital platform yesterday The most difficult task for the BOI is coordinating with multiple State agencies to provide investors with a seamless experience. To address this, the Government has established two high-level inter-agency committees. One is chaired at the Treasury level, and if bottlenecks persist, issues are escalated to a Cabinet-level committee. Herath said these mechanisms show the Government is serious about attracting FDI and willing to remove institutional barriers to move projects forward.