By Uwin Lugoda
Sri Lanka’s foreign direct investments (FDIs) planned for the second quarter of 2020 have been shifted to the third and fourth quarters, according to the Board of Investment (BOI), due to the impact of the Covid-19 pandemic.
“The constructions for FDIs like factories and other construction-related projects have been delayed, but that does not mean the FDIs themselves go away. They were just shifted and will come during either quarter three or four,” BOI Director General Sanjaya Mohottala said, speaking to The Sunday Morning Business.
However, he stressed that these FDIs have not been cancelled and have only been deferred. He added that most projects have already commenced, despite being a bit delayed due to the lack of people, raw materials, and capital goods.
Mohottala further stated that despite this drop, when looking at this year’s approved projects and other projects that have not yet being signed, Sri Lanka has around $ 1.4 billion in FDIs to date. He went on to state that this ensures that the country’s pipeline is healthy and will not face issues next year.
“This is what I am more focused on. Otherwise, next year we will fall flat on our face. So whether the FDIs are shifted one quarter, the projects have commenced. It is only a little delay.”
According to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2020, inflows to Sri Lanka has have decreased from the record level of $ 1.6 billion in 2018 to $ 758 million in 2019. The country’s FDI stock exceeded $ 13 billion in 2019, and the Government expects the yearly FDI to triple up to $ 4 billion by 2022.
Sri Lanka’s foreign direct investments (FDIs) planned for the second quarter of 2020 have been shifted to the third and fourth quarters, according to the Board of Investment (BOI), due to the impact of the Covid-19 pandemic.
“The constructions for FDIs like factories and other construction-related projects have been delayed, but that does not mean the FDIs themselves go away. They were just shifted and will come during either quarter three or four,” BOI Director General Sanjaya Mohottala said, speaking to The Sunday Morning Business.
However, he stressed that these FDIs have not been cancelled and have only been deferred. He added that most projects have already commenced, despite being a bit delayed due to the lack of people, raw materials, and capital goods.
Mohottala further stated that despite this drop, when looking at this year’s approved projects and other projects that have not yet being signed, Sri Lanka has around $ 1.4 billion in FDIs to date. He went on to state that this ensures that the country’s pipeline is healthy and will not face issues next year.
“This is what I am more focused on. Otherwise, next year we will fall flat on our face. So whether the FDIs are shifted one quarter, the projects have commenced. It is only a little delay.”
According to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2020, inflows to Sri Lanka has have decreased from the record level of $ 1.6 billion in 2018 to $ 758 million in 2019. The country’s FDI stock exceeded $ 13 billion in 2019, and the Government expects the yearly FDI to triple up to $ 4 billion by 2022.