Sri Lanka has completely missed out on Foreign Direct Investment flows to emerging markets last year. Sri Lanka has completely missed out on Foreign Direct Investment flows to emerging markets last year. FDI to emerging markets dominated by Chain and India grew 40 percent but flows to Sri Lanka have been hovering around the US$ 200 million a year mark for a decade.
Foreign Direct Investment or FDI has become a key source of finance for developing economies.
FDI’s are better than private capital flows, because they are long term in nature.
Foreign Direct Investment for developing countries is also useful because investors help bring in new technology, skills, management practices, and create access to international markets.
Worldwide FDI flows have also grown at an extraordinary rate since the early nineteen eighties. Global foreign direct investment increased moderately in 2004 after a significant decline in 2001 to 2003.
FDIs declined in value by 41 percent in 2001, 13 percent in 2002 and 12 percent in 2003. Last year global foreign direct investment stood at US$ 648 billion