Launching the World Investment Report 2006 (WIR), compiled by the United Nations Conference for Trade and Development (UNCTAD) in Colombo yesterday, Minister of Investment Promotion and Enterprise Development Rohitha Bogollagama highlighted possible strategies which Sri Lanka could adopt in order to receive a share of Foreign Direct Investment (FDI) available from different parts of the world.

During the first eight months of 2006, Sri Lanka has achieved its highest share of FDI amounting to US$ 340 million out of a targeted US$ one billion. The strategy best suited is through improvement of the paddy and fisheries sectors to be up to international standards as well as the power and telecom sectors.

If oil is found in Sri Lanka, this too would help increase FDI on account of the auxiliary support services necessary to convert crude oil into a marketable product.

The WIR has highlighted that FDI worldwide grew by 29 per cent in 2005 to reach US$ 916 billion. Developed countries obtained US$ 542 billion, while developed countries performed well and achieved US$ 334 billion.

The highest performer was the United Kingdom, which obtained US$ 165 billion, while the high performing developing nations were China, Hong Kong, Singapore, Mexico and Brazil.

Cross border mergers and acquisitions (M&As) were an import segment of FDI and grew by 88 per cent to reach US$ 716 billion in 2006, the Minister said.

FDI flowed into the service sector mainly finance, telecommunications and real estate. There was also a sharp increase in FDI in the primary sector, specially in petroleum.

Sri Lanka, too, performed better than it did in 2004 achieving an increase of US$ 39 million with a total of US$ 272 million in 2005.