Sri Lanka expects foreign investment to grow by 50 percent to 300 million US dollars in 2005 with good performance in its construction, apparel and tourism sectors, reports Xinhua.
But Sri Lankan Board of Investment Chairman Saliya Wickramasuriya maintained that peace in the island country was essential for realising the target.
However, with the peace talks between the government and Tamil Tigers far from resuming soon, Wickramasuriya asked the government to address the most immediate concern of potential investors by exploring ways to reduce labour costs.
"Infrastructure, both in terms of access roads, highways as well as power, that is another strong focus," he said.
Sri Lanka expects to see foreign direct investment of around 200 million dollars this year, the annual average. That is equivalent to around one percent of the country's gross domestic product (GDP).
The government's 2005 budget passed by parliament last week focuses spending on rural infrastructure projects, as well as offering incentives for investment in power generation projects and bolstering small- and medium-sized businesses.
--Indo-Asian News Service