reports record FDI inflows in 2004
FDI inflows to Sri Lanka reached new heights in 2004 at US $234
million, up 10.9 percent from figures in 2003, the Board of Investment
(BOI) said. "This increase is unprecedented in an election
year, during which historically FDI inflows have contracted. Considering
the absence of large privatizations, reaching this record investment
level in 2004 is a great achievement for Sri Lanka," said Saliya
Wickramasuriya, BOI Chairman/Director General in a statement.
largest single contribution came from Swiss cement manufacturer
Holcim, who invested over US$ 50 million in its cement manufacturing
facility. Malaysian cellular mobile network MTN came in a close
second by committing nearly US$ 40 million to expand its operations,
increasing the rate of mobile telecommunication penetration in Sri
Lanka. Also significant was the investment of the HSBC with its
new Business Process Outsourcing (BPO) operations in Sri Lanka.
important sectors in which FDI took place were the manufacture of
non-metallic minerals, textiles and apparel industries; food beverage
and tobacco products; chemical, petroleum and rubber products; manufactured
products; fabricated metal products, machinery and transport and
wood and paper products.
inflows by country were led by Switzerland, with the UK, Malaysia
and India following closely. The services sector recorded the highest
percentage (47.7%) of FDI inflows, indicating a continuing trend
from manufacturing to more "people-oriented" and knowledge-based
industries, the statement added.