Sri Lanka reaches billion dollar FDI volume in 2011: minister

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

Dec 09, 2011 (LBO) – Sri Lanka has reached a highest ever foreign direct investment volume of a billion US dollars by November 2011, deputy economic development minister Lakshman Yapa Abeywardene said. “This includes state land sales,” minister Abeywardene said. “Land purchases are an integral part of an investment project. By November 2011 we have posted the highest ever volume of foreign direct investment.”

Sri Lanka is targeting a billion US dollars of FDI or about 2.0 percent of gross domestic product per year after a war ended in 2009.

In 2010 Sri Lanka drew 516 million US dollars in FDI, slightly lower than 602 in 2009.

The previous highest FDI inflows were seen in 2008, when Sri Lanka attracted 889 million US dollars.

Analysts have warned that Sri Lanka’s investment prospects are now clouded by an expropriation law that violated property rights of citizens and non-citizens.

Though the state promised an end to expropriations nationalizations of land in listed plantations companies were announced in a budget for 2012.

But minister Abeywardene defended the move saying expropriations only applied to particular companies which had broken some conditions.

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