Sri Lanka's FDI hits record $1.06 billion in 2025 on investor confidence surge
Sri Lanka’s foreign direct investment (FDI) soared to a record $1.06 billion in 2025, marking the first time the country surpassed the billion-dollar threshold. The 72% surge from the previous year reflects growing confidence among international investors, with major projects and key sectors driving the boom.
The largest single investment came from China, with the $3.7 billion Sinopec oil refinery in Hambantota standing as Sri Lanka’s biggest-ever FDI. Another significant commitment arrived in January 2026, when China Harbour Engineering Company Port City Colombo pledged $300 million.
Manufacturing dominated the influx, accounting for 46% of new capital, while port development followed at 26%. Tourism, telecommunications, and property development attracted 11%, 6%, and 5% respectively. The tourism sector, in particular, drew premium global brands, with over 20,000 new hotel rooms set to open in 2026. Singapore, India, and France emerged as the top investors, contributing $318.9 million, $213.7 million, and $122.5 million. Additionally, 24 new greenfield projects added $134 million, making up roughly 13% of the total FDI. The economic upturn is supported by stronger reserves, now at a post-crisis high of $7 billion. Early-year remittances jumped by 32%, and public external debt restructuring reached 92% completion. The IMF forecasts growth of 3.1%-3.3% for 2026, though Sri Lanka’s Central Bank has raised its own projection to 4%-5%.
The record FDI figures signal a turning point for Sri Lanka’s economy, backed by large-scale projects and improved financial stability. With reserves rising and debt restructuring nearly complete, the country appears on track for sustained growth in the coming years.
