Sri Lanka is targeting 1.5 billion US dollars worth of foreign direct investments (FDI) for 2017, a doubling from last year, a senior official said.
“Up to now we have secured 1 billion US dollars and another 500 million is in the process of being finalised. Most of the investment is from existing investors and not new investments,” Dumindra Ratnayaka, chairman, Board of Investment told a Ceylon Chamber of Commerce Forum on Tuesday.
“We are going to get 5 billion US dollars in FDI by 2020, quite an optimistic target.”
FDI into Sri Lanka was 808 million US dollars in 2016.
Analysts say that investors want consistent policy not so much the tax breaks and don’t want the policy to change each time the government changes.
Ratnayaka also said that a 150-acre industrial park will be set up as a Public – Private – Partnership at a cost of 3.5 billion rupees with a company from Thailand.
The Park would be completed by end 2018 and operated by Rojana Industrial Park Public Limited of Thailand, a joint venture between Japan’s Nippon Steel and Thailand’s Vinichbutr Group.
“To bring in investors we need parks of this nature. The existing parks are almost full,” he said.
“Under phase one we expect an investment in the excess of 500 million US dollars.”
Vinichbutr operates about 500 companies in their industrial zones in Thailand and are looking to draw investors making electronic home appliances like television sets initially and later get auto parts manufacturing.