Sri Lanka–Saudi Public Investment Fund discussions have intensified following high-level meetings in Riyadh aimed at attracting large-scale foreign investment. Officials highlighted Sri Lanka’s capital market potential and economic opportunities to strengthen bilateral financial cooperation.
Sri Lanka–Saudi Public Investment Fund discussions highlight capital market potential
Sri Lanka–Saudi Public Investment Fund engagement has gained momentum after a high-level Sri Lankan delegation met senior officials of Saudi Arabia’s sovereign wealth fund in Riyadh, seeking to expand investment partnerships and deepen economic cooperation between the two nations.
The Sri Lankan delegation was led by Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, who delivered a comprehensive presentation highlighting Sri Lanka’s competitive economic advantages and strategic investment opportunities. The meeting served as a platform to promote the country’s capital market potential and attract large-scale institutional investors.
During the discussions, Abeysinghe outlined Sri Lanka’s ongoing economic reforms, improved policy stability, and emerging opportunities in multiple sectors that are aligned with global investment priorities. He emphasised Sri Lanka’s position as a regional gateway for trade and investment, supported by its geographic location and expanding financial sector capabilities.
Senior representatives from the Securities and Exchange Commission also played a central role in strengthening investor engagement. SEC Chairman Senior Professor D.B.P.H. Dissabandara and Chief Executive Officer Rajeeva Bandaranaike presented the country’s regulatory reforms and policy measures designed to enhance transparency, investor protection, and sustainable capital market development. The officials explained that Sri Lanka has introduced modern regulatory frameworks to improve market efficiency and attract long-term institutional participation.
The Sri Lanka–Saudi Public Investment Fund dialogue also focused on aligning Sri Lanka’s financial market growth with the investment strategies of the Saudi sovereign wealth fund. PIF Senior Director Mulham Albakree outlined the Fund’s Strategic Plan for 2026 to 2030, which prioritises international investment expansion across diverse sectors. He emphasised that establishing a Bilateral Investment Protection Agreement between Sri Lanka and Saudi Arabia would be crucial in strengthening investor confidence and ensuring long-term investment security.
The Saudi Public Investment Fund is one of the world’s largest sovereign wealth funds and plays a leading role in Saudi Arabia’s Vision 2030 economic transformation strategy. The fund drives economic diversification by investing across key sectors including energy, infrastructure, logistics, tourism, manufacturing, technology, healthcare, financial services, and capital markets. Its global investment strategy focuses on supporting innovation, economic growth, and sustainable development.
Officials noted that Sri Lanka’s economic transformation efforts and reform agenda are increasingly aligning with international investor expectations. The strengthening of financial sector regulations, fiscal management improvements, and ongoing structural reforms have contributed to rebuilding investor confidence following the country’s economic crisis. These developments are seen as critical in positioning Sri Lanka as an attractive destination for global sovereign wealth investments.
Sri Lankan Ambassador to Saudi Arabia Ameer Ajwad briefed participants on the status of existing bilateral agreements between the two countries. He highlighted the Agreement on the Avoidance of Double Taxation, which provides tax relief mechanisms for investors and encourages cross-border financial activity. The ambassador stressed that strengthening bilateral economic agreements would further enhance investor certainty and facilitate smoother capital flows between the two economies.
Both parties agreed to establish a dedicated communication channel to continue discussions and evaluate potential collaboration opportunities. Analysts view this step as significant in maintaining investment dialogue and converting discussions into concrete financial partnerships.
Additional participants at the meeting included Colombo Stock Exchange Director Ray Abeywardena, SEC Deputy Director General Tushara Jayaratne, Colombo Stock Exchange Senior Vice President of Marketing Niroshan Wijesundere, and Sri Lanka’s First Secretary to Saudi Arabia Tashma Vithanawasam. Their participation underscored Sri Lanka’s coordinated approach to presenting investment opportunities across regulatory, financial, and diplomatic channels.
The Saudi Public Investment Fund currently manages a globally diversified portfolio valued at approximately SAR 3.4 trillion, equivalent to around 910 billion US dollars as of 2024. The fund’s scale and investment reach position it among the most influential sovereign wealth funds worldwide, making its engagement with Sri Lanka a potentially significant milestone for foreign direct investment.
Economic analysts believe that sustained engagement with major sovereign wealth funds could support Sri Lanka’s long-term development strategy by strengthening infrastructure financing, boosting capital market activity, and encouraging technology-driven investments. The Sri Lanka–Saudi Public Investment Fund partnership discussions reflect broader efforts by Sri Lanka to diversify funding sources and enhance global economic integration.
While the discussions remain at an exploratory stage, the continued engagement signals growing international interest in Sri Lanka’s recovery and reform progress. Policymakers remain optimistic that stronger bilateral investment cooperation could contribute to economic stability and sustainable development in the coming years.