Nov 18, 2017

Enterprise Sri Lanka Budget brings FDI to the fore

Sri Lankagears itself towards attracting greater Foreign Direct Investment (FDI) through the 2018 government’s budget proposals  
The realized Foreign Direct Investments (FDIs) of Board of Investment (BOI)  enterprises to the country which was on a declining trend since 2014 with a drop of 37% in 2015 and 17% in 2016 has seen a slight turnaround in 2017 with an amount of USD 711.2 million for eight months up to August.
The majority portion of FDI inflows in 2016 were reported from tourism, telecommunication and manufacturing sectors.
The government expects to increase the FDIs to USD 5 billion per year under the “Three-Year Economic Delivery Programme”.
In an attempt to lift FDIs to desired levels the budget announced that the government will lift the restrictions of listed companies having foreign ownership owning land.
Further, budget indicated that the government will liberalize some restrictions on foreigners buying apartments. The budget also indicated that that the government will review existing foreign direct investment processes and benchmark them to developed nations in its attempt to attract higher FDI.