Sri Lanka records 101% increase in FDIs for 2025 despite need for reforms

Sri Lanka has recorded a Foreign Direct Investment (FDI) inflow of USD 569 million so far in 2025, marking a significant 101% increase compared to 2024, according to the latest data from the Board of Investment (BOI).

Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, stated in a Facebook post today (July 22) that this increase reflects the growing economic stability and renewed confidence among investors in Sri Lanka’s business environment.

He noted that while the government has made steady progress in improving the ease of doing business, critical reforms are still necessary to build stronger investor confidence. These include ensuring policy consistency, addressing land use issues, establishing a streamlined single-window clearance system, advancing legal reforms, safeguarding investments, and introducing well-structured incentive schemes.

Despite existing challenges, Abeysinghe highlighted the country’s positive direction. He pointed to upcoming initiatives such as new Export Processing Zones (EPZs), designated lands for tourism development, and expanding opportunities at the Colombo Port City as key drivers of future economic growth.

The Deputy Minister emphasized that these developments place Sri Lanka on a strong path to accelerate its economic momentum in the coming years.