Sri Lanka expects foreign direct investment (FDI) inflows to be between 1.5 billion and 2 billion U.S. dollars in 2026, a senior official told journalists on Friday.

Chairman of the Board of Investment Arjuna Herath said FDI has exceeded one billion dollars in 2025.

Herath said the government sees manufacturing investments critical to strengthening Sri Lanka’s industrial base, generating employment, and rebuilding investor confidence after a period marked by economic and policy uncertainty.

Herath cited the recent recovery of Sri Lanka’s business sector from cyclone Ditwah as a reason for the country’s positive outlook on attracting foreign investment, saying that more than 90 percent of companies that experienced operational disruptions in recent adverse weather have now resumed normal business operations.