Sri Lanka notches up US$ 600 mn foreign investment in 2006

January 01, 2007 (LBO) – Sri Lanka has notched up a record 600 million dollars in foreign direct investment last year, government said Monday, led by telecom and apparel.

The record inflows are over the 287 million dollars of last year, Rohitha Bogollagama, industries and investment promotion minister said.

The Board of Investment said in October that bulk of the investment inflows for 2006 were from telecommunications, software development, and fabric and clothing plants as local manufacturers teamed up with foreign suppliers.

The achievement falls short of an earlier target of a billion dollars, as an escalating local conflict and an outbreak of violence spooked foreign investors.

Analysts have said the FDI shortfall may also be due to the BOI’s decision this year to lift its minimum investment floor by five times to 250,000 dollars.