Sri Lanka gets most FDI for telecoms in first half 2010

Nov 23, 2010 (LBO) – Sri Lanka has received 208 million US dollars as foreign direct investments in the first half of 2010, with telecoms leading with 85 million US dollars, followed by manufacturing at 56 million US dollars, the Central Bank said. “Of the manufacturing sector, food, beverages and tobacco products; textile, wearing apparel and leather products; chemical, coal, rubber, petroleum and plastic products categories absorbed around 59.0 per cent of FDI,” the Central Bank said.

Power generation attracted 85 percent of total inflows.

The central bank said projects approved by the Board of Investment (BOI) have increased by 83.4 percent and contracted investments had increased 45.2 percent, without giving actual figures.

A 30-year war ended only in May 2009, and actual FDIs mostly related to agreements contracted earlier.

Sri Lanka is moving to trim tax holidays and create a lower and simpler permanent tax regime to attract longer term investments in the post-war period.

“The new Foreign Direct Investment (FDI) policies of the BOI will be aimed at drawing investments into agriculture, fisheries, business outsourcing, education, shipping, aviation, infrastructure and tourism,” the Central Bank said.

“The BOI wh