Sri Lanka has recorded a remarkable doubling of Foreign Direct Investment (FDI) inflows in 2025, a surge attributed to the island’s strategic positioning amid shifting global power dynamics. With major trade routes becoming increasingly contested, investors from both the East and West are viewing Sri Lanka as a neutral logistics hub.
Economic analysts point to the Colombo Port City and the Hambantota Industrial Zone as key drivers. “We are seeing a diversification of capital. It is no longer just infrastructure; we are seeing significant inflows into manufacturing and IT services,” noted the State Minister of Investment Promotion. This economic resilience is fostering a new era of growth, decoupling the local economy from regional volatilities.
References:
- Board of Investment of Sri Lanka (BOI): https://investsrilanka.com/
- Central Bank of Sri Lanka (External Sector): https://www.cbsl.gov.lk/en/statistics/statistical-tables/external-sector
