Sri Lanka FDI Inflows Rise to 1.04 Billion Dollars

The United Nations Conference on Trade and Development reported that foreign direct investment inflows to Sri Lanka rose to 1.04 billion dollars in 2025, an increase from 759 million dollars in 2024. According to the World Investment Report 2026, the country's inward FDI stock reached 18.23 billion dollars over the same period.

While inward investment grew, outward FDI flows declined from 110 million dollars in 2024 to 98 million dollars in 2025, though the total outward FDI stock grew to 1.80 billion dollars. To better target fiscal incentives, the Government of Sri Lanka shortened tax holidays for projects in Colombo Port City, linking these benefits to investment scale and employment criteria.

These domestic trends occurred alongside a broader regional increase, with South Asian FDI inflows reaching 46.12 billion dollars in 2025. Globally, FDI flows grew by 6 percent to 1.6 trillion dollars, though the report notes that high financing costs, geopolitical tensions, and trade policy uncertainty have contributed to an uneven global recovery.