Sri Lanka records USD 827 Million in Foreign Investment during first nine months of 2025

The Board of Investment of Sri Lanka (BOI) announced that foreign direct investment (FDI) inflows, including foreign commercial loans to BOI-approved enterprises, reached USD 827 million during the first nine months of 2025.

This marks a 138 percent increase compared to the same period in 2024, highlighting strong investor confidence in Sri Lanka’s improving business climate.

According to the BOI, the total inflow comprised USD 133 million in equity capital, USD 132 million in reinvested retained earnings, USD 231 million in intra-company foreign borrowings, and USD 331 million in long-term foreign commercial loans.

Of this amount, USD 124 million came from project agreements signed in 2025, while the remainder was generated through reinvestments and expansions by existing enterprises. Local investors also contributed significantly, with USD 326 million invested across 163 BOI projects during the same period.

Major Investments Boosting Growth

The largest contributor to this year’s foreign investment was Colombo West International Terminal (CWIT) Pvt Ltd, which invested USD 229 million in developing advanced port infrastructure at the Port of Colombo. The project, implemented under the Strategic Development Project Act, is a partnership between Adani International Port Holdings (India), John Keells Holdings PLC, and the Sri Lanka Ports Authority. Once completed, the West Container Terminal will expand Colombo’s port capacity by 3.2 million TEUs, further strengthening its position as a leading transshipment hub in South Asia.

CEAT OHT Lanka Pvt Ltd, a new subsidiary of India’s CEAT Ltd, invested USD 111 million to establish a plant for producing off-the-highway tyres for export, enhancing Sri Lanka’s reputation as a regional tyre manufacturing base.

Michelin Lanka Pvt Ltd reinvested USD 72 million into its operations, while Bluehaven Services Pvt Ltd, a subsidiary of Melco Resorts and Entertainment Ltd (Hong Kong), invested USD 85 million in gaming facilities at the City of Dreams Sri Lanka integrated resort.

In addition, a major property development project contributed USD 47 million, supporting Colombo’s urban growth. Altogether, these five projects accounted for 66 percent of the total foreign capital inflows in 2025. Another 150 BOI-approved enterprises contributed USD 283 million, reflecting broad investor participation across multiple sectors.

Investor Confidence and Economic Stability

BOI Chairman Arjuna Herath said the sharp rise in investments demonstrates renewed global confidence in Sri Lanka’s economy.

“The growth of foreign capital inflows to USD 827 million in the first nine months of 2025 demonstrates the renewed confidence investors have in Sri Lanka’s business environment,” he said. “Both new and existing projects have contributed to this impressive performance, underscoring the impact of reforms and ease-of-doing-business initiatives implemented by the Government and the BOI.”

He added that projects such as CWIT, CEAT OHT Lanka, Michelin, and Melco not only bring in capital but also generate jobs, promote technology transfer, and integrate Sri Lanka into global value chains.

Strong Pipeline and Positive Outlook

From January to September 2025, the BOI approved 104 projects worth a total of USD 1.06 billion, including 48 new projects, 49 expansions, and 7 projects approved under Section 16 of the BOI Law. Of this, USD 540 million represents foreign capital and USD 520 million represents local capital.

These projects span various sectors, including rubber manufacturing, solar power generation, mixed-use development, medicinal crop-based manufacturing, cement processing, mining, and dairy production. Expansions were also approved in telecommunications, residential development, training, and manufacturing, showing sustained investor trust.

With several new proposals under review and many approved projects already being implemented, especially in ICT, petroleum refining, renewable energy, and advanced manufacturing, the BOI expects total FDI inflows for 2025 to exceed USD 1 billion.

The agency said it remains committed to improving facilitation measures, streamlining approvals, and strengthening investor protection to position Sri Lanka as a competitive and sustainable investment hub in South Asia.