Malaysia top Lankan investor for two years running

Malaysia, for the second year running has emerged as the biggest foreign investor in Sri Lanka, according to official government statistics.

In 2005, Malaysian investments totalled US$99.56 million far ahead of second-placed Singapore with US$30.63 million. Others in the top five were UK (US$26.34 million), India (US$17.86 million) and Luxembourg (US$17.31 million), according to the Board of Investment (BOI) figures.

From figures available so far, in the nine months to September 2006, Malaysia again topped the list with US$86.12 million worth of investments followed by Luxembourg US$32.91 million and UK US$ 29.29 million. Officials said Malaysia is certain to end year 2007 once again in the top position.

They said investors from the East Asian country are expected to boost investments in Sri Lanka as they vie for some mega infrastructure projects in new highways and power expected to come on stream in the next few years.
The spurt in Malaysian investment is largely due to the massive influence of Telekom Malaysia’s local subsidiary, Dialog Telekom, Sri Lanka’s biggest mobile phone operator. This company alone has invested US$ 450 million since its inception in the mid 1990s.