FDIs hit US$ 450mn in first 6 months

27 September 2012 03:14 am Views - 3830

Sri Lanka has been able to attract US$ 452 million as foreign direct investments (FDIs) by the end of June this year, as opposed to US$ 413 million in the first six months of 2011, a government minister said.

According to Economic Development Deputy Minister Lakshman Yapa Abeywardana, the majority of investments in the first six months has come for projects in the infrastructure and services sectors.

Sri Lanka attracted US$ 321 million for infrastructure and services sectors in the first half, while US$ 126 million was lured as investments to the manufacturing sector. Investments amounting to US$ 4.5 billion were made in the agricultural sector.

As per the minister, the biggest investment in the first half had come from Hong Kongbased Shngri-La, which was about Rs.110 million. The second biggest FDI source for Sri Lanka up to June 2012 has been India with US$ 100 million.

Sri Lanka has also received significant investments from Mauritius (US$ 42 million), the United Arab Emirates (US$ 26.7 million) and Singapore (US $ 25.9 million).

Meanwhile, the number of new projects in the first six months of 2012 amounted to 143, with 96 supplementary programmes (reinvestments). In 2011, the total number of new agreements stood at 217 with 337 reinvestments.

Sri Lanka attracted US$ 1.06 billion as FDIs in 2011 and the country has set a target of US$ 1.7 billion FDIs in 2012.

Minister Yapa was very positive about reaching the target set for FDIs in 2012, as the bulk of investments is usually realized in the second half of the year.

He also said that the government has identified four locations- Colombo, Hambantota, Trincomalee and Kalpitiya as main economic development zones. He added that Colombo will be made a main trans-shipment center for South Asia after the completion of its current development programme, which is aimed at expanding the depth and land extent of the Colombo port.

 Hambantota will be made the main supply, storage and trans-shipment point in Asia, while Trincomalee would be developed as a main industrial park. Kalpitiya will be transformed into a high-end tourist attraction.

All investors - foreign or local will be offered attractive tax concessions, lands and infrastructure.