Sri Lanka Board of Investment (BOI) has failed to attract Foreign Direct Investment in the recent past as the island anion’s investment promotion agency which had been carrying out this task for 28 long years.
The BOI was established in 1992 extending the scope of the Greater Colombo Economic Commission (GCEC) which was formed in 1978.
According to the World Bank, FDI inflows have averaged 1.2 percent of GDP over the last five years, well below rival emerging markets, including Vietnam (4.9%), Malaysia (3.1%), and Indonesia (3%).
In South Asia, Sri Lanka also remains below neighboring India and Bangladesh, with 1.7% and 1.4%, respectively.
As an institution the BOI will need to keep an open mind and a firm eye on the big picture playing out on a world stage if it is to help Sri Lanka attain its development goals, he added.
Nonetheless, in the short term there must be practical measures to not only finalise existing projects and attract new ones but also give confidence about the restructuring process so that global attention and interest does not drift away from the country, he pointed out.
The BOI has set a target of drawing in Foreign Direct Investments worth 2 billion US dollars by the end of 2020.
The highest foreign investment received by Sri Lanka so far this year is 250 million US dollars for the construction of a 30-storied commercial tower inclusive of 700 new residencies.
During the last two months, the BOI received applications which altogether amount to $ 370 million worth of projects,”
This $ 370 million in FDIs includes the $ 250 million mixed development project by Shangri-La to build an apartment and shopping complex along Baladhaksha Mawatha in Colombo 2.
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