ATTRACTING FOREIGN DIRECT INVESTMENTS TO SRI LANKA

Chamika Waidyalankara ECU Number 10217155 ACBT MBA(I) 2011

Table of Contents
LIST OF TABLES.............................................................................................................................................. 3 LIST OF FIGURES ............................................................................................................................................ 4 ABSTRACT ........................................................................................................................................................ 5 INTRODUCTION .............................................................................................................................................. 6 What is foreign direct investment (FDI)? ......................................................................................... 6 An Overview of FDIs in Sri Lanka ........................................................................................................ 7 How does foreign direct investment affect economic growth? ............................................... 8 Benefits of FDIs to Sri Lanka ................................................................................................................. 8 Key factors which could attracts FDI in flows to Sri Lanka ....................................................... 9 Adding value through Regional Integration ...................................................................................... 11 Why invest in Sri Lanka ............................................................................................................................. 11 Regional Trading Hub ........................................................................................................................ 11 Colombo Port ........................................................................................................................................ 11 The Hub Port of South Asia offers : ................................................................................................... 11 Bandaranaike International Airport (BIA) ................................................................................ 12 Global Logistics Hub ........................................................................................................................... 12 Open Economy .......................................................................................................................................... 12 Quality of Life ........................................................................................................................................ 13 Economic Freedom ............................................................................................................................. 14 Business Environment ...................................................................................................................... 15 Strategic Access to The Indian Market ............................................................................................ 15 Highly Literate & Cost Competitive Labour Force ...................................................................... 15 Attractive & Transparent Laws .......................................................................................................... 16 Constitutional Guarantee for Investments ................................................................................ 16 Foreign direct investment statistics ..................................................................................................... 18
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CONCLUSION ................................................................................................................................................. 19 RECOMMENDATIONS................................................................................................................................. 20 REFERENCES ................................................................................................................................................. 21 BIBLIOGRAPHY ............................................................................................................................................. 22

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LIST OF TABLES
Table 1 Table 2 Human Development Index of some selected countries 2010 Index of Economic Freedom

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LIST OF FIGURES
Fig 1 Fig 2 Factors influencing for FDI FDI inflows and GDP growth

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ABSTRACT
This reports primary objectives are to study the FDI flow to Sri Lanka and its impact and benefits on the Sri Lankan economy. This will also identify the challenges in attracting FDI inflows. The FDI flow to Sri Lanka has fluctuated widely during the last 24 years but overall been low in comparison to set targets each year. A point to note is that the investment is way below the regional counterparts. It is estimated that Sri Lanka has lost around 3 billion dollars on FDIs during the last 24 years. When analyzing the data, it reveals that there is a strong relationship between the security situation and the FDI flow into the country. Especially in the 1987 - 1989 periods, the trend was very evident but there after in the 1990s there was a surge in the inflows due to the higher business confidence experienced. The potential for rebuilding the Sri Lankan economy in the post-war phase depends on forging the right foreign linkages. The road to funding Sri Lankas ambitious plans to double its GDP over five years is heavily dependent on its ability to attract foreign direct investment. The scale of the industry may however cap the investment inflow and with it the contribution to GDP. But the issue of Sri Lankas lack of basic infrastructure, including mass transport for people and goods, accommodation for workers close to the industries and cheap electricity could hamper large investments in promising industries.

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INTRODUCTION
Since nearly three decades, the foreign direct investment (FDI) concept has become to play an important role in the economic development of Sri Lanka as well as large number of countries in the world. Therefore, it is now widely recognized that FDI can offer important advantages for the recipient economy in addition to capital inflows, FDI can lead to transfers technology and know-how, improve the access to international markets and spur competition. However FDI inflows cannot be taken as grant, as countries continue to liberalize, Multi-National Companies (MNCs) are attracted to locate that offer the most appropriate conditions. Moreover, with an expected downturn in the global flows of the FDI in the coming years, the competition among various locations of FDI is likely to intensify further. Countries are likely to step up their efforts to attract FDI flows, for example, further efforts to liberalize FDI entry in to host economies by opening new sectors to foreign investment and more proactive investment promotion measures.

What is foreign direct investment (FDI)?

According to the World Trade Organization (WTO) (1996), foreign direct investment means; When an investor based in one country (the home country) acquires an asset in a country (the host country) with an intend to manage the assets. However, according to the Organization for economic Cooperation and Development (OECD) definition in 1996, mean that Foreign direct investment as reflecting the objective of obtaining a lasting interest by a resident entity in one economy (direct investor) in an entity resident in an economy other than that of the investor (direct investment enterprise). According to the Balance of Payment Manual (BPM 5) (IMF 1993) refers to FDI means; As an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor.

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An Overview of FDIs in Sri Lanka

Prior to economic liberalization, Sri Lanka has followed inward looking economic policies, which had limitations for foreign investors and free flow of FDI. Although there were limitations during the period of 1950-1977, some measures had been taken to attract FDI. For instance, in 1966, presented a white paper for FDI and also foreign investment advisory committee was setup in 1968 in order to investigate and manipulate policies regarding foreign direct investment in Sri Lanka. With the market oriented economic policy accepted as being the most effective engine of growth, political entities have made it their top priority to create an investment friendly economic climate in 1977. Based on Foreign Investment Act in 1978, investment policies in Sri Lanka have been engineered to attract foreign investment. In addition, Sri Lanka was one of the longest democratic traditions in the region and over the past 20 years, successive governments have followed free market policies and continued to liberalize the economy. Investment has been actively canvassed and now there are over 1,000 companies from 55 countries operating in Sri Lanka. The countrys investment laws are transparent and automatic across a wide range of sectors.

Foreign investment inflows to Sri Lanka continued to increase over the last decade as a result of investment favorable policies adopted by the successive government. The downturn in world economic activities, slowing down in capital inflows to developing countries, deterioration of investor confidence due to the civil war and politics related uncertainty and the stagnation of the Japanese economy adversely affected the investment inflows to Sri Lanka in the past few years. Since the beginning of the 90s decade, the annual value of FDI inflows to Sri Lanka ha s started to continue with an increasing rate when compared to 80s decade. This kind of upward movement of FDI is interpreted as an outcome of the second liberalization reforms initiated in 1989. The mostly observed transformation of relocating of labour intensive production activities from rapidly growing East Asian Newly Industrialized countries to labour surplus countries in South Asia. Following these transformations, Hong Kong, Taiwan and Korean investors showed prominently in the participation of FDI projects recently.

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How does foreign direct investment affect economic growth?

Foreign direct investment (FDI) is considered as an effective driver of achieving a high economic growth in any developing country. It enables a capital-poor country to build up physical capital, create employment opportunity, develop productive capacity, enhance skills of local labour through transfer of technology and managerial know-how, and help to integrate the domestic economy with the global economy.

Benefits of FDIs to Sri Lanka

One of the advantages of foreign direct investment is that it helps in the economic development. Foreign direct investment also permits the transfer of technologies. This is done basically in the way of provision of capital inputs. The importance of this factor lies in the fact that this transfer of technologies cannot be accomplished by way of trading of goods and services as well as investment of financial resources. It also assists in the promotion of the competition within the local input market. Sri Lanka can also develop the human capital resources by getting their employees to receive training on the operations of a particular business. The profits that are generated by the foreign direct investments that are made can be used for the purpose of making contributions to the other revenues such as taxes. Foreign direct investment helps in the creation of new jobs. It also helps in increasing the salaries of the workers. This enables them to get access to a better lifestyle and more facilities in life. It has normally been observed that foreign direct investment allows for the development specially the manufacturing sector. Foreign direct investment can also bring in advanced technology and skills. There is also some scope for new research activities being undertaken. It also opens up the export window that allows the opportunity to cash in on their superior technological resources. It has also been observed that as a result of receiving foreign direct investment from other countries, it has been possible to keep the rates of interest at a lower level.

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Key factors which could attracts FDI in flows to Sri Lanka

Growth prospects and positive country conditions - Along with market size, the prospect of growth (generally measured by growth rates) also has a positive influence on FDI inflows. Countries that have high and sustained growth rates receive more FDI flows than volatile economies. There are good number of studies showing the positive impact of per capita growth or growth prospect on FDI (Schneider and Frey, 1985; Lipsey,1999; Dasgupta and Rath, 2000; and Durham, 2002). As a positive accolade to the above fact, Sri Lanka received major world recognition when it was ranked as the eighth fastest growing economy in the world by the Economist Intelligence Unit (EIU) of the United States. It is envisaged that Sri Lanka would record a 6.3 percent GDP growth rate that is second only to China, which will record 8.6 percent in the Asian region. Furthermore, recently Sri Lanka was elevated to a Middle Income Emerging Market status country by the International Monetary Fund (IMF). Labor cost and availability of skilled labor - Cheap labor is another important determinant of FDI inflow to Sri Lanka. A high wage-adjusted productivity of labor attracts efficiency-seeking FDI both aiming to produce for the host economy as well as for export from Sri Lanka. Studies by Wheeler and Mody (1992), Scneider and Frey (1985), and Loree and Guisinger (1995) show a positive impact of labor cost on FDI inflow. Countries with a large supply of skilled human capital attract more FDI, particularly in sectors that are relatively intensive in the use of skilled labor. Infrastructure facilities - The availability of quality infrastructure, particularly electricity, water, transportation and telecommunications, is an important determinant of FDI. When other developing countries compete for FDI, if Sri Lanka is best prepared to address infrastructure bottlenecks will secure a greater amount of FDI. The previous literature shows the positive impact of infrastructure facilities on FDI inflows (Wheeler and Mody (1992), Kumar (1994), Loree and Guisinger (1995), Asidu (2002)). Openness and export promotion - The key hypothesis from various theories is that gains from FDI are far higher in the export promotion (EP) regime than the import promotion regime. The theory proposes that import substitution (IS) regimes encourage FDI to enter in cases where the host country does not have advantages leading to extra profit and rent seeking activities. However in an EP regime, FDI uses low labor costs and available raw materials for export promotion, leading to overall output growth. Trade openness generally positively influences the export-oriented FDI inflow into an economy (Edwards (1990), Gastanaga et al. (1998), Housmann and Fernandez-arias 9|Page

(2000), Asidu (2001)). Overall, the empirical literature reveals that one of the important factors for attracting FDI is trade policy reform in the host country. The theoretical literature has explored the trade openness or restrictiveness of trade policies (Bhagwati, 1973; 1994; Brecher and Diaz-Alejandro, 1977; Brecher and Findley; 1983). Investors generally want big markets and like to invest in countries which have regional trade integration, and also in countries where there are greater investment provisions in their trade agreements. Rate of return on investment - The profitability of investment is one of the major determinants of investment. Thus the rate of return on investment in a host economy influences the investment decision. TAX Incentives - most Governments have been actively promoting their countries as investment locations to attract scarce private capital and associated technology and managerial skills in order to help achieve their development goals. They have increasingly adopted measures to facilitate the entry of foreign direct investment (FDI). Examples of such measures include liberalizing the laws and regulations for the admission and establishment of foreign investment projects; providing guarantees for repatriation of investment and profits; and establishing mechanisms for the Factors influencing for FDI

Fig 1

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Adding value through Regional Integration

The Regional Integration Concept in poses uncertainties for expansion of foreign direct investment in the Asian region. Indeed, it is possible that under regional integration arrangements foreign direct investment may expand significantly only in those member countries that are initially the most open to international trade and hence enjoy the most efficient and competitive economies. When we talking about the regional integration in the Asian region, first for the process of economic integration in the South Asian region, the South Asian Association for Regional Cooperation SAARC was implemented in 1995. Presently it consisting seven member countries including India, Pakistan, Sri Lanka, Bangladesh, Maldives, Nepal and Bhutan. The South Asia Free Trade Agreement (SAFTA) was agreed among the seven South Asian countries that form the South Asian Association for Regional Cooperation (SAARC). SAFTA came into effect on 1st January 2006, with the aim of reducing tariffs for intra - regional trade among the seven SAARC members. Pakistan and India are to complete implementation by 2012, Sri Lanka by 2013 and Bangladesh, Bhutan, Maldives and Nepal by 2015. It replaces the earlier South Asia Preferential Trade Agreement (SAPTA) and may eventually lead to a full fledged South Asian economic growth in the future.

Why invest in Sri Lanka

Regional Trading Hub Sri Lanka is strategically located at the cross roads of both east and west sea routes and serves as the point of entry to South Asia. Colombo Port

According to the Lloyds Register the Colombo Port ranks as No. 01 port of South Asia and the 27th in the World. Throughput has grown at a compound annual rate of 20.3% over the last seven years. Transshipment cargo accounts for 76% of throughput. 23 major shipping lines and 7 feeder services operate out of Colombo. The Colombo Port is computerized and linked to all major freight stations.

The Hub Port of South Asia offers :

An ideal geographical location with minimum deviation from shipping lines. Fully equipped berths for late container vessels. Excellent feeder network. Fast turnaround and round the clock service. 11 | P a g e

EDI facilities with two modern container terminals, with state of the art technology and control systems. The most competitive rates in the region. Multi country consolidation and entrepot cargo. Flexibility to meet customer needs. Work is also in progress to develop and upgrade the port of Galle located in the south and the port of Trincomalee on the north east coast of Sri Lanka <www.slpa.lk>

Bandaranaike International Airport (BIA) The BIA is a regional hub of air transportation and is considered to be # 1 in South Asia.

Major airlines operate frequent flights from BIA to important cities in Europe, Middle East, Far East, Australia, and the Indian Sub Continent. Passenger movement at BIA has increased from 2.8 Million to 4.2 in 2009, a 50% increase. The cargo movements at BIA has increased from 127,116 to 131,841 in 2009 The aircraft movement in the same period has increased from 21,058 to 28,608 in 2009

Global Logistics Hub Sri Lanka will be developed as a major Global Logistics Hub in the South Asian region for trade, investment, communications, and financial services. Key Features of Colombo Freeport

Distribution parks at air and seaports Quality physical infrastructure facilities Warehousing & administration facilities Superior IT/telecom facilities Public/private participation One-stop service centre Private sector management Attractive incentives for operators and users

Key Activities of Colombo Freeport

Multi-country consolidation Regional distribution Transhipment Entrepot trading Import/export and value addition

Open Economy
Today, Sri Lanka is ranked as the most liberalized economy in South Asia. Investors are provided with preferential tax rates, constitutional guarantees on investment agreements, exemptions from exchange control and 100% repatriation of profits.

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Total foreign ownership is welcome in almost all areas of the economy, with only a few areas limited or restricted to foreigners. Sri Lanka vis--vis the World Quality of Life- Economic Freedom- Business Environment Quality of Life Sri Lanka leads the South Asian region in terms of human development indicators, with its high literacy rate of 91% placing it way ahead of other South Asian nations & on par with those of south east Asia. Its national health indicators are comparable with those of the developed world. This is underscored by the relatively high ranking the country has received in terms of GDP p.c. (PPP), which at US$ 4,243 is higher than that of India (US$ 2,753), Pakistan (US$ 2,496) & Bangladesh (US$ 1,241). Sri Lanka was placed 102nd (Medium Human Development Category) out of 182 countries in the Human Development Indicators constructed in 2009, ahead of Philippines (105th), Vietnam (116th), Indonesia (111th), India (134th), Pakistan (141st) & Bangladesh (146th). The Human Development Index (HDI) measures a country's achievements in three areas of human development viz: longevity, knowledge & a decent standard of living. Longevity is measured by life expectancy at birth. A combination of adult literacy & the combined primary, secondary & tertiary gross enrolment ratio is used as a measure of knowledge while GDP per capita (PPP) is used to measure the standard of living.

Human Development Index of some selected countries Country Malaysia Thailand Philippines HDI Rank 66 87 105 GDP Per Capita(PPP US$) 2007 13,518 8,135 3,406 Life Expectancy at Birth(Years) 2007 74.1 68.7 71.6 Adult Literacy Rate (%) 2007 91.9 94.1 93.4

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Sri Lanka China Vietnam Indonesia India Pakistan Bangladesh

102 92 116 111 134 141 146

4,243 5,383 2,600 3,712 2,753 2,496 1,241

74.0 72.9 74.3 70.5 63.4 66.2 65.7

90.8 93.3 90.3 92.0 66.0 54.2 53.5

Economic Freedom The 2010 Index of Economic Freedom published by the Heritage Foundation has ranked Sri Lanka 120th out of 179 developed & developing countries, in terms of its economic freedom & the quality of its overall policy environment. Index of Economic Freedom Rankings South & South East Asia 2010 (Selected Countries) Country Singapore Korea, South Thailand Philippines Sri Lanka Malaysia Pakistan India China Bangladesh Indonesia Vietnam World Ranking 2 31 66 109 120 59 117 124 140 137 114 144

Table 2 - Source: 2010 Index of Economic Freedom The Index, published since 1995, includes a broad spectrum of institutional factors that determine the extent of economic freedom in a country. 14 | P a g e

The economic variables used to measure the level of economic freedom are grouped into 10 broad categories viz:

Trade policy, Fiscal burden of government, Government intervention in the economy, Monetary policy, Capital flows and foreign investment, Banking & finance Wages and prices Property rights, Regulation, and Informal Market

Business Environment In the EIU's country forecast, Sri Lanka's overall score in the business environment rankings improves from 5.39 for the historical period (2004-2008) to 5.59 for the forecast period (20092013). The country's global ranking changed from 63rd to 66th and its regional ranking moves from 13th to 15th in comparison to the historical period. The higher rankings are indicative of the more attractive investment climate in the country, with Sri Lanka's score in most of the categories used to evaluate the business environment improving significantly. For instance, Sri Lanka is ranked highly for its liberal approach to foreign investment, with its global & regional rankings moving from 36th to 27th (out of 60 countries) and 8th to 4th (out of 16 countries) respectively. From a regional perspective, the country's main advantages centre on its open foreign investment regime, its commitment to private enterprise & competition & its liberalized trading environment (where it is ranked 5th).

Strategic Access to The Indian Market

The Indo Lanka Free Trade Agreement clearly demonstrates the political goodwill and commitment between India and Sri Lanka. The agreement creates multiple investment opportunities for local and multinational firms based in Sri Lanka seeking to enter the Indian market. The underlying premise of the agreement is to create a free trade area through the complete or phased elimination of tariffs, which will occur over defined phases.

Highly Literate & Cost Competitive Labour Force

The Sri Lankan work force accounts for 35% of the total population. Sri Lanka boasts high levels of education. We have the highest literacy rate in South Asia (92%) and approximately 50% of 15 | P a g e

the students who have completed their higher education are trained in technical and business disciplines. English is widely spoken in the country and is the main language used by the business community. In addition, according to the World Bank Development Indicators 2000, Sri Lanka has the lowest labour cost per worker in manufacturing.

Attractive & Transparent Laws

When you sign an agreement with the BOI, the specific incentives granted to an eligible company, which may include tax holidays or preferential tax rates, exemptions from customs duty and foreign exchange controls, remain valid for the entire life of the enterprise. Constitutional Guarantee for Investments Sri Lanka has an enviable record of political credibility in the international arena. All major political parties are committed to free enterprise and individual freedom. The government has never defaulted nor requested rescheduling of any of its international obligations. Significantly this protection extends to foreign investors. Bilateral investment agreements supported by a constitutional guarantee, provides strong protection for foreign investment for Sri Lanka. The safety of foreign investment is guaranteed through the acceptance by two third majority of Parliament of the Constitutional Guarantee of Investment Protection Agreements. Under article 157 of the country's constitution, the agreement enjoys the force of law and no legislative, executive or administrative action can be taken to contravene the provisions of a bilateral investment agreement otherwise than in the interests of national security. Bilateral investment agreements are valid for 10 years, and are extended automatically unless terminated by either party. If the agreement is terminated investments already made are protected for another 10 years. A clause in the Sri Lankan constitution ensures the sanctity of the agreements. These agreements provide the following:

Protection against nationalisation. Prompt and adequate compensation if required. Free remittance of earnings, capital and business fees. Settlement of disputes under the International Convention for the Settlement of Investment Disputes (ICSID).

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Bilateral Investment Protection Agreements exist between Sri Lanka and the following countries: Belgium/ Luxembourg, Canada, China, Denmark, Egypt, Finland, France, Germany, Iran, India, Italy, Indonesia, Japan, The Republic of Korea, Luxembourg, Malaysia, The Netherlands, Norway, Pakistan, Romania, Singapore, Sweden, Switzerland, Thailand, the United Kingdom and the United States of America. Sri Lanka is also a founder member of the Multilateral Investment Guarantee Agency (MIGA). This provides further safeguards against expropriation and non-commercial risk. Investors may also refer disputes for arbitration under the rules of the International Chamber of Commerce.

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Foreign direct investment statistics

The downturn in world economic activities, slowing down in capital inflows to developing countries, deterioration of investor confidence due to the civil war and politics related uncertainty and the stagnation of the Japanese economy adversely affected the investment inflows to Sri Lanka in the past few years. Sri Lanka's foreign direct investment (FDI) flows in the first six months of 2008 reached 425 million US dollars. According to Board of Investment estimates, in 2008, the services sector attracted 362.3 million dollars worth of investments, with telecom leading with 290.7 million dollars followed by power generation with 46 million dollars. Property development had brought in 7.2 million dollars, hotels 2.07 million, other services 7.5 million and business process outsourcing (BPO) and information technology 9.05 million dollars. Sri Lanka expects foreign direct investment to more than quadruple to $4 billion by 2012. FDI inflows and GDP growth

Fig 2

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CONCLUSION
In conclusion, the report appears to support the impact of foreign direct investment on GDP growth of Sri Lanka. This finding confirms the relevance of the economic reform programs in Sri Lanka to reduce macroeconomic instability, remove economic distortions, promote exports and restore sustainable domestic investment for economic growth. However, the countrys protectionist trade policies, direct and indirect regulatory barriers that raised the capital cost of foreign firms by 13% and loss of profits by 30% may have impeded foreign investment. The low level of development of infrastructure facilities, low investment in human capital, transport, telecommunication facilities, high lending rate, and political instability of the country may have resulted in low investment. In the long term, Sri Lanka needs to boost its human capital and improve its labour market, physical and technological infrastructure and administrative capabilities to induce higher investment.

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RECOMMENDATIONS
There are several trends, which are reinforcing traditional impulses for foreign direct investment that is access to natural resources, markets, and low-cost labor. With the rise of globalization technological progress allows for the separation of production into more discrete phases across national barriers. Expansion in Information and communication technologies, Improvement in logistics necessarily allow production to be close to markets while taking advantage of the specific characteristic of individual production locations. Sound investment climate is crucial for attracting FDIs. Microeconomic reforms aimed at simplifying business regulations, strengthening property rights, improving labor market flexibility, and increasing firms' access to finance are necessary for raising living standards and reducing poverty in a country. Reform is necessary for creating an investment-oriented climate. Reform management matters as investment climate reforms are done politically. They often favor unorganized over organized groups and the benefits tend to accrue only in the long term, while costs are felt up front. Political decisions play a significant role in this context.

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REFERENCES
Don Anura Wickramasinghe - Determinant of the Factors Affecting Foreign Direct Investment (FDI) Flow to Sri Lanka and Its Impact on the Sri Lankan Economy. 2007 Dayasiri Ralamandadige Fernando Country note on Trade and Investment Policy Coordination Sri Lanka 2007 Tax Incentives and Foreign Direct Investment - A Global Survey UNCTAD/ITE/IPC/Misc 2000 Douglas H. Brooks, Emma Xiaoqin Fan, Lea R. Sumulong - Foreign Direct Investment in Developing Asia: Trends, Effects, and Likely Issues for the Forthcoming WTO Negotiations. 2003 Institute of Policy Studies of Sri Lanka - Foreign direct investment and economic integration in the SAARC region. 2000 UNCTAD - World Investment report - Country Sri Lanka. 2004 Wasantha Athukorala - The Impact of Foreign Direct Investment for Economic Growth: A Case Study in Sri Lanka. 2003 Economic Policy and Poverty Team South Asia Region, World Bank - Sri Lanka Economic Update. 2010 SARRC, Governors Symposium - South Asias Recent Growth and Future Prospects. 2008 Gordon H. Hanson - Should Countries Promote Foreign Direct Investment? University of Michigan And National Bureau of Economic Research 2000 Ajith Nivard Cabraal - The World sees Opportunity in Sri Lanka. National Conference of the Institute of Chartered Accountants of Sri Lanka. 2010 Nagesh Kumar - Infrastructure Availability, Foreign Direct Investment Inflows and Their Export-orientation: A Cross-Country Exploration. 2001 Pravakar Sahoo - Foreign Direct Investment in South Asia: Policy, Trends, Impact and Determinants. ADB Institute Discussion Paper No. 56, 2006. Overseas Development Institute - Foreign Direct Investment Flows To Low-Income Countries: A Review Of The Evidence. 1997 N. Balamurali and C. Bogahawatte - Foreign Direct Investment and Economic Growth in Sri Lanka 2004 Towards Earth Summit 2002, Briefing paper - Foreign Direct Investment: A Lead Driver for Sustainable Development? 2002 www.boi.lk

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BIBLIOGRAPHY
Imad A. Moosa - Foreign Direct Investment, Theory, Evidence and Practice. Palgrave, NY 2002 Kenneth A. Froot - Foreign Direct Investment. University Of Chicago Press 1994

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