The Hon. (Dr.) Harshana Suriyapperuma – Deputy Minister of Finance and Planning

¶ 01 Hon. Speaker, on behalf of the Minister, I reply as follows.

¶ 02 (a) (i) Annual FDI inflows from 2015 to the first half of 2024 (FDI with and without foreign loans to FDI enterprises) are as follows (USD million):

¶ 03 2015: 680 (without loans) / 1,160 (with loans) 2016: 1,078 / 1,910 2017: 2,139 / — 2018: 1,189 / — 2019: 670 / — 2020: 784 / — 2021: 1,167 / — 2022: 758 / — 2024 (H1): 521 / —

¶ 04 (The complete table is tabled.)

¶ 05 (ii) Measures already taken:

¶ 06 - Zero tolerance for corruption: ending the culture of commissions that deterred credible investors and imposed extra costs. Action will be taken irrespective of rank against offenders, while removing barriers that deprived genuine investors.

¶ 07 - Shift from deal-based to merit-based project selection: reforming the investment process to award opportunities based on project merit, promoting transparency and regular reporting, encouraging listed entities, and facilitating both direct investments and expansions.

¶ 08 - Immediate online visas for investors: streamlining visa issuance previously delayed even after court decisions; widely appreciated by investors.

¶ 09 - Digital infrastructure: strengthening the move to a digital economy and providing a platform for investors to identify opportunities.

¶ 10 - Priority areas identified (e.g., maritime sector, among others).

¶ 11 Additional ongoing measures and policy actions (tabled) include: - Investment promotion programmes; preparing project pipelines; engaging missions and webinars; incentives under Inland Revenue Act for IT/services exports and others; Gazette 2334/39 to extend BOI incentives; enhanced capital allowances for expansions; five-year residence visa scheme; clarifications for Eravur Textile Zone incentives; criteria for foreign equity in mineral sands; collaboration with UNESCAP on selected sectors (pharmaceuticals, digital textiles, nanotech labs).

¶ 12 - Facilitation: aftercare for existing investors; skills matching with NAITA; regional job fairs; Job Bank portal; digitalization (online import–export documentation, automated BOI duty-free approvals, online visa recommendations, automated import–export reconciliation, “Partnership Finder” B2B database); land availability for investments; establishment of two sector zones (textiles and pharmaceuticals – Madakalapuwa and Sooriyawewa/Hambantota); Investor Facilitation Center and Coordination Committee; Green Channel facilities extended to 135 enterprises.

¶ 13 Planned actions: - Promote Eravur Textile Zone; engage developers for Techno Parks in Kurunegala and Galle; identify bankable projects; participate in EXPO 2025. - Automate investment approvals with SOPs from line agencies and digital submission/tracking. - Ensure timely implementation of 74 projects (41 new, 33 expansions) signed Jan–Dec 2024 (estimated USD 608 million), via close coordination. - Establish seven Export Processing Zones approved on 22.12.2023; Phase 1 (five zones) to start in 2025 at Kankasanthurai, Paranthan, Mankulam, Iranavila and Trincomalee; Phase 2 includes Bingiriya Phase III and Hambantota Service Outside Area. - Upgrade existing zones to global green standards. - Priority sectors: maritime tourism, green hydrogen, higher education, ICT/nanotech/technology.

¶ 14 (b) Not applicable.

¶ 15 (The full answer was tabled.)