Government targets US$1b FDI

IRANGIKA RANGE

The Government through its dynamic policies to ensure maximum foreign investment flows to the country is targeting US$ 1 billion Foreign Direct Investment (FDI) this year.

Speaking to the Daily News, Finance and State Revenue Minister Ranjith Siyambalapitiya said that FDI inflows for the period from January to September 2008 reached US$ 820 million while it was US$ 734 million in 2007.

”The Government is committed to promote, approve and facilitate FDI which would achieve sustainable economic development for the country,” he added. ”FDI inflows have increased considerably in 2006, 2007 and 2008 progressively , though several elements tried to show foreign investments have decreased due to terrorist activities of the country,” he noted.

Foreign Investors are very much keen on investing in Sri Lanka due to it’s geographical location , direct access to the Indian Market, high standards of the work force ,the open economy and the various free trade agreements.

The telephone and telecommunication sector is the highest contributer in terms of FDI value recording 68 percent in 2008. Both infrastructure and manufactured products have contributed 13 percent and 8 percent ..

Malaysia is the highest contributer in the FDI stakes recording a value of US$ 126.54 million.

The Netherlands and India have contributed US$ 82.05 million and US$44.91 million.