BOI reports USD 1.5bn worth FDIs in 2023

Despite external and internal setbacks, BOI achieved 1.8 billion in total investments with signed and approved projects with FDI projects of U$ 1.5 billion, State Minister Dilum Amunugama said on Friday.The baseline forecast is for global growth to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, well below the historical (2000–19) average of 3.8 percent. Due to the Ukraine-Russia war, the US, and UK inflation is historically 40-45%. Further negative influences due to the Israel and Palestinian conflict will have repercussions on energy price escalation.

In the context of the Internal macroeconomic situation, our country’s rating, the default of paying debtors, and political uncertainty send a less investor-friendly signal to the outside world at the beginning of 2022. Yet in 2023 economy was slowly but steadily pulled back from the worst economic situation post-independence era.

The government’s far-sighted and politically unpopular economic stabilization measurement has provided a much-needed foundation for reforms in the institutional and regulatory front hence it has communicated positive signals to our investor community. The significant achievement of curbing the acceleration cost of living which has resulted in the single digit of inflation from 74% in September 2022 to 1.5 % in October 2023

Yet as an economy, it will continue to contract in 2023, it was better than -7.8 in 2022 but in 2023 it has forecasted -2.0 negative growth. it is an arduous task to attract FDI amidst economic contraction. Yet, in the YOY comparison, BOI registered and approved FDI Investment projects increased by 122% in 2023.