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Chinese Investments to Dominate Sri Lanka’s FDI inflows in 2021

Sri Lanka eyes to meet atleast half of the 2021 Foreign Direct Investment (FDI) targe of $2.5 billion from Chinese investments.

“We have already got commitments for Colombo Port City at a range of about $1 billion and that’s very real, at least we expect $175 million inflows to Chinese tire plant in Hambanthota and around $200 million inflows to pharmaceutical and education sectors,” State Minister for Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal said.

Colombo Port City project funded by China Communications and $300 million tire plant by Shandong Haohua Tire Co. Ltd are projects under China’s Belt and Road Initiative (BRI).

Joining a forum at the 4th Annual Asia Securities Sri Lanka Investment Conference today, the State Minister revealed that the government has set a ‘realistic’ $2.5 billion FDI target for 2021.

The country is set to miss the FDI target of $2.5 billion set for 2020, mainly due to COVID-19 pandemic, despite òffering a range of incetive for investments.

In the first six months of 2020, Sri Lanka attracted $ 345 million in FDI inflows, compared to US$ 535 million received in the same period last year.