Govt. eyes US$ 2.5bn in FDIs next year

The government yesterday announced a foreign direct investment (FDI) target of US$ 2.5 billion for next year, a figure that is not overly ambitious given the commitments already received, according to State Minister Ajith Nivard Cabraal.

With investments expected to come into the country with projects such as the Hambantota tire factory, and those proposed for the pharmaceutical sector and the education sector, State Minister for Money, Capital Market, and State Enterprise Reforms Cabraal expressed confidence in the target being achieved.

“Now that is not an unrealistic target in my view. Already we have got commitments for the port city in the range of about US$1 billion. And that’s very real,” said Cabraal addressing the conference hosted by Asia Securities last evening.

He stated that with a series of committed investments expected to come in during the course of 2021, many other investors also would be excited to explore Sri Lanka.

“What a lot of people don’t realise is that we have an order book. As far as the investments are concerned in the public sector, it is about Rs.5.2 trillion. That is an extraordinary number,” shared Cabraal.

As long as the projects are monitored carefully and seriously, the US$ 2.5 billion target is achievable, he opined.

In an effort to reach the 2021 FDI target, Cabraal called for increased participation of the private sector, which is possible, as the government has created a conducive environment for improved involvement, in addition to the macro fundamentals being maintained in “good shape”.