The Board of Investment of Sri Lanka (BOI) announced today that Foreign Direct Investment inflows including foreign commercial loans for investments to BOI-approved enterprises have reached USD 827 million during the period January to September 2025, marking a remarkable 138 percent increase compared to the corresponding value during the period in 2024.
This Investment inflow came from four sources: Equity capital – USD 133 million, Reinvested retained earnings – USD 132 million, Intra-company foreign borrowings for investments – USD 231 million, long term foreign Commercial loans for investments– USD 331 million.
Of the total inflows, USD 124 million was secured through project agreements signed with the BOI in 2025, while the balance was generated from reinvestments and expansions by existing enterprises. This performance reflects both the growing confidence of new investors and the continued commitment of existing investors to expand their operations under a strengthened business environment.
In addition, Local investment to the value of USD 326 million was realized from 163 BOI projects, during the first nine months of 2025.
- Major Investments Driving Growth
The largest contributor to Foreign Direct Investment inflows during the period was Colombo West International Terminal (CWIT) Pvt Ltd, which invested USD 229 million in state-of-the-art port infrastructure. Established under a Strategic Development Project Act, agreement signed in 2022, CWIT is an investment from Adani International Port Holdings Pte Ltd (India) and John Keells Holdings PLC in partnership with the Sri Lanka Ports Authority . Once completed, the West Container Terminal at the Port of Colombo will expand the port’s capacity by 3.2 million TEUs, reinforcing Colombo’s role as a key transshipment hub in South Asia.
CEAT OHT Lanka Pvt Ltd established as a new company in Sri Lanka, a subsidiary of India’s CEAT Ltd, contributed USD 111 million to produce off-the-highway (OHT) tyres for export markets, further consolidating Sri Lanka’s position as a competitive tyre manufacturing base.
Michelin Lanka Pvt Ltd continued to reinvest, channeling USD 72 million from its parent into its Sri Lankan operations, while Bluehaven Services Pvt Ltd, a subsidiary of Melco Resorts and Entertainment Limited (Hong Kong), invested USD 85 million in developing and operating gaming facilities at the City of Dreams Sri Lanka integrated resort project.
Additionally, a major BOI property development project infused USD 47 million, supporting Colombo’s ongoing urban development drive.
Together,foreign capital inflows from these five projects accounted for 66 percent of the total inflows recorded this year. Beyond these, another 150 BOI-approved enterprises collectively contributed USD 283 million, demonstrating broad-based investor participation across multiple sectors.
BOI Chairman Arjuna Herath stated: “The growth of foreign capital inflows to USD 827 million in the first nine months of 2025 demonstrates the renewed confidence investors have in Sri Lanka’s business environment. The strong participation of existing enterprises reflects the trust built through economic and political stability, transparency, and good governance. Both new and existing projects have contributed to this impressive performance, underscoring the impact of reforms and ease of doing business initiatives implemented by the Government and the BOI.”
He further added: “Projects such as Colombo West International Terminal, CEAT OHT Lanka, Michelin, and Melco not only bring capital but also create employment, transfer technology, and integrate Sri Lanka into global value chains. The BOI remains fully committed to facilitating strategic investments and ensuring Sri Lanka continues to attract high-value, long-term investors.”
Between January and September 2025, BOI approved 104 projects with a total estimated investment value of USD 1,060 million, comprising 48 new projects, 49 expansions of existing projects approved under Section 17 of the BOI Law and 7 projects approved under section 16 of the BOI Law. Of this, USD 540 million represents foreign capital and USD 520 million is local capital.
Approved projects span a wide range of sectors including: Rubber product manufacturing, Solar power generation, Mixed-use developments, Medicinal crop-based manufacturing for export, Cement grinding and packing, Mining and processing, Dairy product manufacturing etc.
Expansions were also approved in telecommunications, residential developments, training institutions, and manufacturing plants, signaling sustained investor confidence.
With several new proposals in the pipeline and the approved projects being implemented—particularly in ICT, petroleum refining, renewable energy, and advanced manufacturing—the BOI is optimistic that total Foreign Direct Inflows for 2025, including foreign commercial loans for investment will exceed USD 1 billion. The agency remains focused on enhancing facilitation measures, streamlining approvals, and strengthening investor protection, reinforcing Sri Lanka’s position as a competitive and sustainable hub for international investment in the region.