Government targets six key sectors to attract FDIs
- CNL Reporter
- February 3, 2025
- Political
- Government targets six key sectors to attract FDIs
- 0 Comments
The government is focusing on six key sectors—hospitality, logistics, renewable energy, technology, agriculture, and apparel & textiles—to attract foreign direct investments (FDIs) by building a creative and conducive environment for investments, rather than relying solely on incentives.
This move was highlighted by Board of Investment (BOI) Chairman Arjuna Herath during a panel discussion at the Sri Lanka Economic Summit in Colombo last Wednesday, organised by the Ceylon Chamber of Commerce.
Herath identified the hospitality sector as a “low-hanging fruit” for attracting investments. The government is actively promoting public-private partnerships (PPPs) in this sector, with Sri Lanka Tourism Development Authority (SLTDA) recently calling for tenders to develop 3,000 acres of its land for various projects, including restaurants, hotels, and entertainment facilities.
“We are facilitating investments through these tenders. BOI concessions will apply to investments exceeding a certain threshold, making them more enticing,” Herath said. The BOI will also support SLTDA in packaging these development projects to attract investors.
In the logistics sector, the Sri Lanka Ports Authority (SLPA) is in active negotiations to develop a logistics hub within its premises, with two additional hubs also announced. Herath emphasised the government’s preference for joint ventures in these projects.
“We want joint ventures clearly in these logistics hubs,” he stated. The government is also prioritising PPPs to enhance connectivity between ports and industrial zones, further boosting the logistics sector.
The government has identified 10,000 acres of land for renewable energy projects, aiming to reduce the cost of one unit of power from the current 30-40 US cents to 8 US cents. Herath noted that achieving this goal would require bringing the cost per unit below 5 US cents. These projects are part of the government’s broader strategy to make energy more affordable and sustainable.
The government is moving forward with plans to establish two technological parks in Kurunegala and Galle, both to be developed on a PPP basis. Herath assured that the infrastructure in these parks would be developed to generate investor demand, positioning Sri Lanka as a hub for technology and innovation.
In addition to the above sectors, the government is also prioritising agriculture and apparel & textiles. These sectors are seen as vital for economic growth and job creation, with the government seeking to attract investments that can drive modernisation and increase export potential.
