Sri Lanka's Ports Attract Foreign Investment

Foreign Direct Investment in Sri Lanka: Key Highlights

1. Investment Sources:

   • The Colombo West International Terminal (CWIT) led the charge with a substantial investment of USD 229 million aimed at developing port infrastructure.
   • Collaboration between Adani International Port Holdings Pte Ltd (India), John Keells Holdings PLC, and the Sri Lanka Ports Authority.

2. FDI Statistics:

   • Total Foreign Direct Investment (FDI) inflows from January to September 2025 reached USD 827 million, representing a 138% increase compared to the same period in 2024.
   • Breakdown of investment inflow sources:
     • Equity Capital: USD 133 million
     • Reinvested Retained Earnings: USD 132 million
     • Intra-company Foreign Borrowings: USD 231 million
     • Long-term Foreign Commercial Loans: USD 331 million
   • Of the total, USD 124 million was secured through project agreements signed with the Board of Investment (BOI) in 2025.

3. Capacity Expansion:

   • The CWIT will enhance Colombo's port capacity by an additional 3.2 million TEUs (Twenty-foot Equivalent Units), strengthening its position as a pivotal transshipment hub in South Asia.

4. Government Reforms and Economic Environment:

   • The increased FDI inflow is attributed to enhanced investor confidence in Sri Lanka's business environment, stemming from various reforms and ease of doing business initiatives implemented by the government and the BOI, as highlighted by board chair Arjuna Herath.

5. Strategic Development Agreement:

   • The investment for the CWIT is part of a broader strategic development agreement, indicating a focused approach to infrastructure improvement and economic revitalization.

6. International Investment Climate:

   • The remarkable growth in FDI reflects the international community's improving perception and trust in Sri Lanka's economic strategies and long-term viability.

This summary captures critical data, including financial figures, partnership details, and policy implications, pertaining to the FDI landscape in Sri Lanka during the specified period.