Foreign Investment In Sri Lanka hits record in 2004

Foreign investment in Sri Lanka hit a record of 4 million last year, a 11% rise over the previous year, facilitated by relative peace on the island after decades of ethnic war.





Foreign investment in Sri Lanka hit a record of $234 million last year, a 11% rise over the previous year, facilitated by relative peace on the island after decades of ethnic war. Though the foreign direct investment figure is relatively small, it is significantly higher than the island's balance-of-payments surplus last year.

The largest contribution came from Swiss cement manufacturer Holcim Ltd.

, which invested over $50 million in its cement manufacturing facility.

Telekom Malaysia Bhd. invested $40 million in its local cellular phone unit MTN Networks to upgrade its network, and HSBC Bank invested in a business process outsourcing operation, said Saliya Wickramasuriya, the chairman of the Board of Investment.

"Considering the absence of large privatizations, reaching this record investment level in 2004 is a great achievement for Sri Lanka," Wickramasuriya said.

Since 2002, when a cease-fire between the government and Tamil Tiger rebels took effect, the island's tiny stock