Sri Lanka Sees 138% FDI Surge as Port Upgrades Expand Colombo Hub

The Board of Investment (BOI) announced 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 per cent increase compared to the corresponding value during the period in 2024”. CWIT invested USD 229 million in “state-of-the-art port infrastructure under a strategic development agreement”.

It will expand the port’s capacity by 3.2 million twenty-foot equivalent units (TEUs), reinforcing Colombo’s role as a key transshipment hub in South Asia, the BOI added. Giving a breakdown, the BOI said the investment inflow came from four sources: equity capital of USD 133 million, reinvested retained earnings of USD 132 million, intra-company foreign borrowings for investments of USD 231 million, long term foreign commercial loans for investments of 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. “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,” board chair Arjuna Herath said. “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,” Herath added. The BOI figures highlight Colombo’s growing status as a regional transshipment hub for South Asia as investment flows continue to surge, underlining reforms that aim to make Sri Lanka a more attractive destination for both new and existing enterprises.

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