BOI confident of comfortably topping US$ 1bn in foreign direct investments next year

• This year’s FDIs expected to recover around US$ 900mn
• Overall investments made by BOI firms projected to reach US$ 1.5-2bn
• Says policy consistency remains critical to secure anticipated inflows

Sri Lanka’s Board Of Investment (BOI) is confident of surpassing US$1 billion mark in foreign direct investment (FDI) quite comfortably in 2022 with large inflows of several big-ticket projects—excluding Colombo Port City—are in the pipeline to materialize   next year, while policy consistency remains critical to secure the anticipated inflows into the country.

The BOI projects FDI inflows to recover to around US$ 900 this year, from a 10-year low of US$ 670 million, last year, due to the pandemic. 

Initially, the government was targeting to attract US$ 1 billion in FDI inflows to the Colombo Port City and US$ 1.5 billion in other FDI inflows, with an overall target of US$ 2.5 billion. 

Meanwhile, overall investments made by BOI firms are projected to reach US$ 1.5-2 billion this year.
Ahead of the presentation of 2022 budget early next month, BOI Chairman Sanjaya Mohottala highlighted that policy consistency remains crucial for the country’s future 
FDI prospects.

“The important thing is policy consistency on the macro and the micro fronts. Stability is something that everyone, including the existing investors, and the new investors will look at,” he said.

While, the BOI is currently in the process of setting a FDI target for 2022, Mohottala was confident on surpassing US$ 1 billion mark in FDI inflows quite comfortably next year as the country recovers from the adverse impacts of the pandemic.

He outlined that large-ticket FDI projects, such as  West Container Terminal Project and five new investments and trade zones, which are set to commence operations next year would attract new FDI inflows to the country.  

New BOI zones such as the Eravur Fabric Zone, which commenced operations recently, are also expected to continue to attract FDIs next year.

Moreover, he emphasised that there are large scale FDIs on the pipeline in telecom, IT and manufacturing sectors to be materialised 
next year.

Meanwhile, Mohottala was optimistic that Budget 2022 would present minimum inconsistencies with the long term policies of the government.

“Overall goal of the country is to get the policies right for the country to double the GDP over next 10 year period.  In this regard, conducive investment climate and value propositions, ensuring and maintaining and retaining the value propositions, are absolutely necessary. Hence, in terms of minimum inconsistencies I look forward to, in terms of policies,” he elaborated.