BOI targets $ 2 b FDIs in 2025

Tuesday, 4 February 2025 03:55 - - {{hitsCtrl.values.hits}}

Chairman Arjuna Herath keen on achieving $ 1 b FDIs at least during 1H
Lists hospitality, logistics, renewable energy, technology, agriculture and apparel and textiles to attract FDIs
States incentives is not a journey BOI is going to take amid IMF-backed economic reform program
Says focus is on
creating environment that woos investment
Calls on local firms to invest in lucrative industries through joint ventures, partnerships

By Charumini de Silva

BOI Chairman Arjuna Herath

Board of Investment (BOI) Chairman Arjuna Herath last week revealed that it targets to attract $ 2 billion in foreign direct investment (FDI) this year.

“Our aspiration is to secure $ 2 billion in FDI, with at least $ 1 billion confirmed within the first half of the year,” he stated at the Sri Lanka Economic Summit organised by The Ceylon Chamber.

Noting that the country’s economic growth target for 2025 is set at 5% with investment playing a key role, Herath outlined the investment strategy, stressing the need to mobilise both local and foreign investors to achieve this goal.

He listed out six key sectors including hospitality, logistics, renewable energy, technology, agriculture, and apparel and textiles to attract FDIs by building a creative and conducive environment for investments.

With Sri Lanka under an IMF-backed economic reform program, he said incentives is not a journey that the BOI is going to travel through.

“We do not need to rely on incentives. Instead, we must focus on creating an environment that naturally attracts investment. We cannot afford to wait for investors to come to us. We need to create conditions that make Sri Lanka an unavoidable choice for investment,” Herath stressed.

For Sri Lanka to become a compelling investment destination, Herath outlined three critical pillars — market access, supply chain stability, and skilled labour.

He called on local investors to increase their investments in lucrative industries, like pharmaceuticals, electrical and electronics, marine, agriculture, and renewable energy, through joint ventures and partnerships.

The BOI Chief said low national savings rates, currently at 18%, remain a major challenge, which limits domestic investment capacity. However, with public investment commitments in the upcoming Budget expected to rise to 7-8% of GDP, there is potential for unlocking more capital for infrastructure and industry growth.