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Sri Lanka approves investments of US4.0bn in first half

July 4, 2011 (LBO) - Sri Lanka's Board of Investment, the state investment promotion agency, had approved 4.0 billion dollars of local and foreign investments in 28 projects in the first half of 2011, its acting chairman A M C Kulasekera said.

Among known large projects in the pipeline are two hotel and shopping complexes in Colombo of 500 million dollars each, and a port terminal project of also 500 million dollars.

"The projects are in tourism, infrastructure and manufacturing," he said.

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Kulasekera told an economic forum in Colombo organized by the Ceylon Chamber of Commerce that the agency was now focusing on approving only large projects.

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He said typically only about 60 percent of the approved projects would be followed up with implementation agreements and about 40 percent would yield actual investments.
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In the first half about 800 million dollars worth of agreements had been signed. The BOI had earlier said that in the first quarter 236 million dollars in foreign direct investment had been realized.

Treasury secretary P B Jayasundera said he expected FDI in 2011 would be about 2.

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0 percent of gross domestic product or a little over a billion US dollars.
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