Sri Lanka’s overall Foreign Direct Investment (FDI) inflows surpassed $ 1 billion in 2022 even during a crisis year, for the first time after 2018 as the infrastructure sector saw the highest FDI inflow, Central Bank data showed.

Accordingly, FDI inflows, including loans received by companies registered under the Board of Investment (BOI), increased notably by 37.9%, year-on-year, to $ 1,075.66 million in 2022, compared to $ 780.2 million recorded in 2021. 

FDI inflows to infrastructure projects accounted for around 54.0%  of the total FDI inflows to BOI companies, showing a notable increase in 2022, largely contributing to the overall expansion of FDIs in 2022.

Further, FDIs in the manufacturing sector and services sector, accounted for about 34.0% and 13.0% respectively white FDI inflows to the agriculture sector continued to remain modest in 2022. 

The total value of projects approved during the year by the BOI, under Sections 16 and 17 of the BOI Act. No. 4 of 1978, was estimated at Rs. 546.4 billion, depicting an expansion of 6.3%, year-on-year, from Rs. 514.1 billion in the preceding year. 

The estimated investment value of projects that commenced commercial operations under Sections 16 and 17 of the BOI Act, amounted to Rs. 35.8 billion and Rs. 1,667.4 billion, respectively, during 2022.

However, FDIs, excluding loans, amounted to $ 898 million in 2022, compared to $ 592 million in 2021. 

On a sector-wise basis, FDI inflows to BOI-registered companies were mainly to telecommunications, manufacturing and property development, while FDI flows to Colombo Stock Exchange (CSE)  companies, not registered with the BOI, were mainly to logistics and fuel, gas and petroleum sectors. 

Central Bank annual report said that FDI flows to the West Container Terminals in the Colombo Port started to materialise in the latter part of 2022 while FDI flows to the Colombo Port City and the Hambantota Port project are expected to materialise in the near term.