Foreign direct investment in Sri Lanka (FDI) increased by $ 719. million in June 2018, compared to an increase of $ 352 million in the previous quarter. FDI in Sri Lanka: data on net inflows in millions of USD Quarterly updates, available from March 1977 to June 2018. The last value for foreign direct investment, net outflows (SB, current US dollars) in Sri Lanka is $ 236 808 100 since 2016. Over the past 31 years, this indicator ranges from USD 236 808 to 100.
Net outflows (% of GDP)
Foreign direct investment and net outflows of GDP in Sri Lanka are equal to 0.291 in 2016. The highest value in the last 31 years is 0.291 in 2016 and the lowest is 0 000 in 2001. The last value of foreign direct investment (net worth of the balance of payments, current US dollar) in Sri Lanka is (661 275 700 US dollars) from 2016. In the last 41 years, the value of this indicator ranged from $ 1,218,567 in 1977 and $ 895,920,000 in 2011.
Main Source of FDI Investments
The highest foreign direct investment (FDI) in Sri Lanka in 2017 comes from China, a Sri Lankan statement said. The bank said foreign direct investment in Sri Lanka rose to more than $ 1.6 billion in 2017, rising to $ 801 million.
The Agency for Labor, responsible for promoting and facilitating foreign direct investment, said that in 2017, 1.63 billion dollars were reached, the highest level exceeding 1.61 dollars.
The strong growth is a direct consequence of the reorientation of the government’s economic policy towards a growth based on investments and exports rather than on public debt-financed infrastructure spending. Among the sectors with the greatest growth are the export-oriented manufacturing industry (+ 27%) and services including tourism and information technology (+ 50%) and infrastructures (+ 190%). The highest FDI comes from China, followed by India, Hong Kong and Singapore.
Importance of FDI Investments
There is a strong link between foreign investment and economic growth. More inflows from foreign investments are needed so that the country can achieve a path of sustainable economic growth. There are several indisputable reasons for this. To increase the economy by 6-8% per year, it is necessary to invest from 35% to 40% of GDP. National savings do not reach almost 10%. Foreign loans and foreign investments must meet this investment deficit. This is commonplace and other governments are trying to provide different incentives to foreign investors. However, the record of foreign investment in Sri Lanka is much lower than expected and is low compared to many other Asian countries.
The Sri Lankan economy has witnessed a steady revival of growth in recent months, with the country taking new ways to monetize goods and services. The new government has brought freedom, democracy and transparency, thus giving a message of trust to the international business community. The business environment in Sri Lanka are becoming more flexible in terms of ease of doing business.