Foreign direct investment, net inflows (% of GDP)
How much foreign companies invest here each year, compared with the size of the economy.
Source: World Bank Open Data · As of 2025 · View source
Chart of Foreign direct investment, net inflows (% of GDP) over time. 1.04 % of GDP (2000) → 0.96 % of GDP (2025).
Table
| Period | % of GDP |
|---|---|
| 2000 | 1.04 |
| 2001 | 1.09 |
| 2002 | 1.19 |
| 2003 | 1.21 |
| 2004 | 1.13 |
| 2005 | 1.12 |
| 2006 | 1.70 |
| 2007 | 1.86 |
| 2008 | 1.85 |
| 2009 | 0.96 |
| 2010 | 0.81 |
| 2011 | 1.41 |
| 2012 | 1.34 |
| 2013 | 1.21 |
| 2014 | 1.08 |
| 2015 | 0.80 |
| 2016 | 1.02 |
| 2017 | 1.45 |
| 2018 | 1.71 |
| 2019 | 0.84 |
| 2020 | 0.51 |
| 2021 | 0.67 |
| 2022 | 1.19 |
| 2023 | 0.85 |
| 2024 | 0.76 |
| 2025 | 0.96 |
Sri Lanka's current situation
FDI was 0.96 % of GDP in 2025, 0.20 % of GDP compared with a year earlier. Current status: Concern. Healthy range: There is no fixed rule; emerging economies attracting strong investment typically see 2–5% of GDP. Here 2% and above is Good, 1–2% Watch and below 1% Concern (indicative). Compared with peers —
What is it?
This measures new long-term investment by foreign companies — building factories, buying a lasting stake in local firms — as a share of GDP. Formula: FDI net inflows ÷ nominal GDP × 100. Showing it as a share of GDP makes years and countries comparable.
A simple example
If foreign firms invest USD 1 billion in a year and the economy produces USD 100 billion, FDI is 1% of GDP.
What happens when it is high
Higher FDI brings capital, technology and jobs, and earns foreign currency without adding to government debt. Vietnam sustained FDI of around 4–6% of GDP while building its export industries. FDI concentrated in a few projects can later mean large profit outflows to foreign owners.
What happens when it is low
Low FDI means fewer new factories and jobs, slower technology transfer and more reliance on borrowing to fund investment. Sri Lanka's FDI has mostly stayed around 1–2% of GDP, below many Asian peers — often linked to policy uncertainty and the cost of doing business.
What is a healthy range
There is no fixed rule; emerging economies attracting strong investment typically see 2–5% of GDP. Here 2% and above is Good, 1–2% Watch and below 1% Concern (indicative).
Indicative emerging-market benchmark (World Bank / UNCTAD data).
What might happen next
Official projections
No data yet
Simple statistical trend
A simple statistical trend, not a prediction of what will happen. Forecasts are uncertain and are not financial advice.
Upside: stable policy, investment-friendly reforms and export-oriented projects lift FDI. Downside: political or policy uncertainty and global slowdowns hold it back. Not financial advice.
A simple statistical trend, not a prediction of what will happen. Forecasts are uncertain and are not financial advice.
For experts
FDI is a stable, non-debt source of foreign currency and a driver of productivity and exports.
How we calculate this
Net inflows of direct investment (new investment less disinvestment) by foreign investors, as a percentage of GDP (World Bank, BX.KLT.DINV.WD.GD.ZS). Annual.