Sri Lanka FDI to pick up with hotels and port: Treasury secretary

Mar 24, 2011 (LBO) – Sri Lanka’s foreign direct investments will pick up with planned projects in ports and hotels valued at 500 million dollars each, finance ministry secretary P B Jayasundera said. He said a concession agreement has been signed in the Colombo port for a new terminal that will need 500 million US dollars to build.

“That is a 500 million dollar private foreign investment. A private foreign investment,” he told a business forum in Colombo, organized by Sri Lanka’s software and services companies (SLASSCOM).

“People ask ‘Where is the investment?’ That is the investment.”

The terminal will be built by China Merchant Holdings, a Chinese state firm, and Colombo listed Aitken Spence group.

Jayasundera said investments at the port alone will be equal to the annual foreign investments realized a year between 1990 to 2010. Sri Lanka has still not published a foreign direct investment figure for 2010 but it is expected to be around 300 to 400 million US dollars, lower than the 600 million dollars achieved a year earlier.

The state investment promotion agency is expecting about billion dollars in FDI in 2011.

“In addition new FDI is coming to the hotel sector,