Sri Lanka Sees 138% Surge in FDI in First Nine Months of 2025

Foreign Direct Investment (FDI) in Sri Lanka saw a remarkable increase of 138 percent in the first nine months of 2025, compared to the same period in 2024. According to the Board of Investment of Sri Lanka (BOI), FDI reached $827 million from January to September 2025, reflecting a significant boost in investor confidence.

Factors Behind the Investment Surge

This surge in FDI illustrates both the growing enthusiasm of new investors and the commitment of existing ones to expand their operations within a bolstered business environment. The BOI noted that this trend marks Sri Lanka’s ongoing progress towards economic recovery and highlights its potential to regain its status as a competitive investment hub in the South Asian region.

Improved investor sentiment can be attributed to several recent reforms aimed at enhancing the ease of doing business, ensuring fiscal stability, and promoting infrastructure development. These positive changes have created a more favorable landscape for international investment.

Implications for Economic Growth

The inflow of foreign investment is expected to play a crucial role in generating employment opportunities, boosting exports, and diversifying the economy beyond its traditional sectors. As Sri Lanka continues to attract investment, the importance of sustained momentum cannot be overstated.

To maintain this positive trajectory, policy consistency, transparent governance, and proactive engagement with global investors will be vital. The ongoing commitment to these principles will help ensure that Sri Lanka not only retains its current investors but also attracts new ones in the future.

As the country strives towards economic revitalization, the strong performance in FDI signals an optimistic outlook for its business environment and overall economic stability. The path ahead will require ongoing dedication to the reforms that have begun to take root and the cultivation of a welcoming atmosphere for international business.