According to the information provided by the Central Bank of Sri Lanka the United Kingdom has overtaken China to become Sri Lanka’s top foreign direct investor for 2020.
While FDI and cross border investment in 2020 took a nose dive due to the spread of the pandemic as shown through statistics, Sri Lanka reported $ 548 million in Foreign Direct Investment for the nine months to September 2020, 2019 reported a FDI of $ 793 million for the same time period.
China was the leading bilateral lender of 2020 and is often criticized by many for the economic policy often referred to as “China Debt Trap Diplomacy” where the nation provides loans for development projects and at the point in which nations are unable to pay the loans the infrastructure effectively becomes Chinese property. Hambantota Harbor is an example of such diplomacy which the chines authorities reject profusely.
Nathaniel Rothschild, of the famed Rothschild family visited Sri Lanka in January to assess the possibility of Sri Lanka acting as a manufacturing base for an electronic venture.
Following the reports UK holds 24% of Sri Lanka’s FDI with China dropping down to 2nd place with the 12% FDI followed by India, Hong Kong & Singapore at 3rd, 4th & 5th place with 11%, 8% & 8% FDI respectively.
No.820, Mount Cresent,Malabe,Sri Lanka