Flow of strategic FDI to Asian countries started to decline in 2019 and has recovered only mildly in recent quarters, except for flows to China that have not yet recovered. The IMF bailout package projects FDIs to Sri Lanka to be increased by 21% in 2023 and by 35% in 2024 and thereafter 5% to 7% annual growth.
As geopolitical tensions rise,companies and policymakers are increasingly looking at strategies to make supply chains more resilient by moving production to home or to trusted countries.
It seems to be that new FDIs projected by IMF are part of SOE sales and government stake divergence in some SOEs.