Foreign Investors Take Notice
Sri Lanka attracted USD 827 million in FDI during the first nine months of 2025, representing a 138% increase compared to the same period in 2024. Investment inflows were diversified across equity, reinvested earnings, intra-company loans, and long-term foreign borrowings.
Sectoral Highlights and Investment Trends
- Key sectors: manufacturing, infrastructure, and services.
- Leading investors: Singapore emerged as a significant contributor.
- New vs. expansion projects: A mix of new approvals and expansions of existing businesses demonstrates long-term confidence in Sri Lanka’s market.
Opportunities and Challenges
Sustaining this investment momentum requires consistent policy frameworks, infrastructure improvements, and regulatory transparency. Successfully attracting and retaining FDI can drive job creation, technology transfer, and export growth.
Strategic Takeaways
For local businesses, the FDI surge presents opportunities for partnerships, joint ventures, and market expansion. International investors see potential in a recovering economy, but careful risk assessment and adaptation to local market conditions remain critical.
Outlook
If momentum continues, Sri Lanka could see higher levels of sustained investment, contributing to long-term economic growth and global integration of its business ecosystem.
Sources: Board of Investment Sri Lanka, OnLanka, SriLankaBi
