Sri Lanka expects leisure to loom larger in FDI

Apr 08, 2010 (LBO) – Telecom and power sectors which accounted for 65 percent of foreign direct investment to Sri Lanka in recent years will play a less dominant role as cash pours into leisure with an upturn in tourism, an official said. In the first quarter of this year around 250 million US dollars have come as foreign direct investments (FDI) compared to 602 million for the whole of last year, Board of Investment chief Dammika Perera said.

“In the past telecoms and power sector contributed around 60 percent of FDI, while 40 percent came from other sectors,” Perera told reporters in Colombo.

“In the future the telecoms and power sectors will come down to around 40 percent.”

With a pick up in tourism after a 30-year war ended last year, more cash is expected to pour into the sector.

Leisure firm have started to expand to increase capacity and about 200 million dollars in investment commitments are expected soon, Perera said.

Private power plants supplying the state-run Ceylon Electricity Board have invested 73.6 billion rupees through and generate about 40 percent of the country’s power need, BOI deputy director general A M C Kulasekera said. There are 18 telecommunication service providers that have invested 1