The Board of Investment of Sri Lanka (BOI) has endorsed investment deals worth US$ 2 billion in 2023, including both local and foreign investments. The increase in projects is primarily attributed to the high value of investment in the energy sector. Countries such as China, India, the US, Hong Kong, UAE, France, Korea, Germany, and Singapore were the destinations for these investments. In addition, divestment of shares with Sri Lanka Telecom, Sri Lanka Insurance, Colombo Hilton, Lanka Hospitals, and some state banks in 2024 is expected to bring in additional foreign funding to Sri Lanka. The signing of Free Trade Agreements (FTAs) with Thailand and other countries, as well as the development of the Colombo Port City and private sector projects, are also expected to contribute to improving Sri Lanka's FDI figures in 2023. [6cbbb62a]
The Board of Investment of Sri Lanka (BOI) has achieved Rs. 1.8 billion in total investments, including FDI projects worth US$ 1.5 billion, despite external and internal setbacks. State Minister for Investment Promotion Dilum Amunugama stated that the global growth forecast is expected to slow in the coming years. The political uncertainty and economic contraction in Sri Lanka have made it challenging to attract FDI, but the BOI has registered and approved FDI investment projects that increased by 122% in 2023. The energy sector has seen a significant increase in investment, with companies like Adani Corporation, Sinopec, RM Parks with Shell, and sectors like ITC, BPO, Tourism, and Manufacturing also receiving investments. China, India, the US, Hong Kong, UAE, France, Korea, Germany, and Singapore are the countries that have invested in Sri Lanka in 2023. [2e3076d3]
Sampath Bank has collaborated with the Board of Investment of Sri Lanka (BOI) and the Ministry of Investment Promotion to introduce 'Sri Lanka's Banking Guide for Investors & BOI Companies'. This comprehensive guide offers valuable insights into banking tailored specifically for investors and BOI companies. It covers various aspects such as investment accounts, operational banking, borrowing solutions, financial services, and includes an economic outlook. The guide is available in both print and electronic formats, providing convenience and accessibility to a wide range of users.
This initiative aims to support and facilitate the investment process in Sri Lanka by providing investors and BOI companies with the necessary information and guidance on banking services. By offering a comprehensive overview of banking solutions, the guide aims to enhance the ease of doing business and promote investment opportunities in the country.
Sampath Bank's partnership with BOI and the Ministry of Investment Promotion reflects their commitment to fostering a favorable investment climate in Sri Lanka. By collaborating with key stakeholders, they aim to provide a holistic approach to supporting investors and BOI companies, ensuring they have access to the right resources and information to make informed decisions.
Sri Lanka is also anticipating private equity deals amounting to $250 million in 2024, according to Hong Kong-based merchant banking firm MCM Partners. The Managing Director of MCM Partners, Jahnavi Bhagwati, explained that the turnaround in private equity deals is due to countries like India and Sri Lanka presenting opportunities in the private space after the Bank of Japan raised interest rates in March. Bhagwati mentioned that the stock markets in the region are already seeing a pickup, and investment activity will increase when rate cuts kick in. Sri Lanka is expecting deals of about $250 million, while Bangladesh is anticipating a potential deal of $1 billion, and India's deal sizes range between $10 million and $500 million. [62605b12]