Sri Lanka targets USD2.5Bn FDI in 2018

Oct 05, 2018 (LBO) – Sri Lanka is targeting 2.5 billion US dollars worth of foreign direct investments (FDI) for 2018 from 1.63 billion US dollars in 2017, a senior official said.

“Our target is 2.1 billion US dollars and we are trying to stretch it to 2.5  billion US dollars,”  Mangala Yapa, member, Board of Directors, Board of Investment of Sri Lanka said.

“Up to June 2018 we have secured 1.4 billion US dollars and are also in the process of finalizing a few more projects before the end of the year.”

In order to facilitate FDI, the new Inland Revenue Act provides accelerated investment allowances over and above normal depreciation until companies recover their total fixed investment.

The foreign exchange regime too has been liberalized to improve the investment climate via the new Foreign Exchange Act.

However, analysts say that investors want consistent policy not so much the tax breaks and don’t want the policy to change each time the government changes.