Hambantota Port, telco lead FDI to Sri Lanka in 1H 2018
Nov 01, 2018 19:21 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- The Hambantota Port transfer payments and telecommunication infrastructure drove the growth of foreign direct investments (FDI) in Sri Lanka during the first half of 2018, provisional data from the Central Bank showed.
FDI grew to 1.6 billion dollars in the first half of 2018 from 601.3 million dollars a year earlier,
"China, India, Hong Kong, Malaysia and Sweden were the top five source countries of FDIs in the first half of 2018," the Central Bank said.
Port terminals (mainly the Hambantota Port) brought in 898.2 million dollars in FDI from China in the first half of 2018, up from 0.7 million dollars a year earlier.
Telephone and telecommunication infrastructure FDI increased to 239 million dollars from 76.2 million dollars in 2017.
Amid Sri Lanka experiencing preferential tariffs from the European Union through GSP Plus, and clients moving from China to alternative sourcing destinations to escape the Trump trade war, FDIs into textile and wearing apparel increased 76.2 percent to 48.1 million dollars from a year earlier.
FDIs in hotels and restaurants increased 16.7 percent to 113.3 million dollars from a year earlier, although the sector was also the most riskiest for local banks during the six month period with many inexperienced investors entering into the industry.
Meanwhile, FDIs into the food, beverage and tobacco industries fell 82.2 percent to 6.7 million dollars from a year earlier.
Housing, property development, shops and offices was another major sector, receiving 205.1 million dollars in FDIs, although growth was only 3.1 percent from a year earlier.
FDI into chemicals, petroleum coal, rubber and plastic production fell 66.9 percent to 24.6 million dollars from a year earlier. (Colombo/Nov01/2018)