The Board of Investment of Sri Lanka (BOI) has reached a major investment milestone in 2025, surpassing USD 1 billion in Foreign Direct Investment (FDI). This achievement marks a pivotal moment in Sri Lanka’s investment recovery.
FDI inflows for the year totaled USD 1,057 million, reflecting a 72 percent increase compared to 2024. This robust performance signifies renewed global investor confidence in Sri Lanka, buoyed by improved macroeconomic stability, clearer policy direction, and an enhanced investment facilitation framework.
In 2025, a total of 188 companies contributed FDI, with 24 being new investment projects contracted with the BOI during the year. These new projects contributed USD 134 million, making up 13 percent of total FDI inflows for the year—an increase from the usual 2% to 10% norm of FDI inflows from projects initiated within the year. The remaining USD 923 million was from project expansions and capital infusion into existing operations.
Attracting new investments is a critical indicator of investor confidence, as greenfield and first-time investments typically involve higher risk perceptions and longer-term commitments. The successful entry of new investors in 2025 demonstrates Sri Lanka’s regained credibility as an investment destination. Simultaneously, the continuation and expansion of projects through fresh fund injections and reinvestments by existing investors reflect a positive trend in a growing investment environment, indicating sustained confidence among existing investors.
Data from BOI-approved companies reveals that the USD 1,057 million FDI inflow comprises USD 167 million in equity capital, USD 213 million in reinvestments, USD 567 million in intra-company borrowings, and USD 110 million in foreign commercial borrowings.
The manufacturing sector contributed 46% of the FDI inflow, followed by 26% from the Port Development sector and 11% from the Tourism sector. Singapore, India, France, Netherlands, and Luxembourg were the top five FDI source countries in 2025.
Additionally, in 2025, the BOI approved 146 investment projects with a total investment value of USD 1,906 million, including 70 new projects and 76 expansion projects. Of the total approved investments, USD 896 million is expected to flow in as foreign capital, providing strong momentum toward achieving the FDI target of USD 1.5 billion set for 2026.
The BOI attributes this success to the strong institutional foundation established over the past year, including continuous monitoring of project progress, streamlined approval processes, and close coordination with line ministries and regulatory agencies. These measures have strengthened investor confidence not only within the BOI framework but across the broader investment ecosystem.
Building on the momentum of 2025, the BOI has embarked on a focused path of institutional transformation. A key initiative in this journey is the launch of the BOI Accelerator Program, which sets out a clear strategy and roadmap supported by a two-year action plan aimed at strengthening institutional capacity, enhancing investor facilitation services, and positioning the BOI as a globally competitive and investor-friendly agency.
Several complementary initiatives have also been undertaken to enhance the BOI’s facilitation role. In collaboration with the Asian Development Bank (ADB), the BOI has developed comprehensive policy and strategy frameworks for Investment Promotion, Investment Project Evaluation, and a Policy on Land Allotment.
Recognizing the importance of human capital development within the organization, the BOI has recruited Management Trainees with diversified skill sets in 2025 and secured approvals to fill critical vacant cadre positions while continuing sustained training and development alongside the empowerment of management.
Emphasizing structured and high-impact investments, the BOI launched a new initiative to identify, develop, and promote “Structured Investment Opportunities.” Under this initiative, 20 structured projects will be announced in the first phase, supported by a targeted and vigorous promotion campaign to attract sustainable and high-quality investors.
Looking ahead to 2026, several significant investment projects are in the pipeline in line with the investment targets for the year.
As Sri Lanka moves forward, the BOI remains firmly committed to attracting new investors while supporting the expansion of existing ones, ensuring sustainable, inclusive, and long-term economic growth.
