In a strategic bid to revitalise Foreign Direct Investment (FDI) inflows, the Board of Investment (BOI) of Sri Lanka convened with ambassadors and diplomatic representatives of Sri Lanka’s foreign missions to chart a path forward for international investor engagement.
The high-level meeting, led by BOI Chairperson Arjuna Herath and Director General of Human Resources and Mission Development Sumith Dissanayake, focused on collaborative strategies to position Sri Lanka as a compelling investment destination.
Boosting Investor Confidence
Herath stressed the need for targeted marketing initiatives and tailored incentives to attract foreign investors. He urged diplomats to actively leverage their networks to identify and nurture investment opportunities aligned with Sri Lanka’s evolving economic landscape.
Citing the nation’s recent economic rebound, Herath highlighted the stronger-than-expected GDP growth of 5%, outpacing the forecasted 4.4%, driven by resilience in sectors such as tourism, construction, and services.
Macroeconomic Stability as a Catalyst
The discussion outlined the country’s enhanced monetary stability, crediting Central Bank policy instruments such as interest rate adjustments and open market operations for keeping inflation in single digits and maintaining a stable exchange rate.
Additionally, Sri Lanka’s foreign reserves have strengthened to $7 billion in 2024, with a target of $8 billion for 2025, further reinforcing macroeconomic credibility.
The diplomats were also briefed on ongoing debt restructuring efforts, the IMF’s backing of the government’s economic transformation agenda, and progress on anti-corruption reforms. These developments, BOI officials noted, form a strong foundation for promoting the country abroad.
Expanding the BOI’s Reach
The BOI unveiled plans to streamline investor processes and expand its geographic footprint. In addition to the 15 existing BOI zones, five new regional industrial zones are being fast-tracked:
- Kankesanthurai (KKS) Manufacturing Zone – Primarily targeting the apparel industry, with room for diversification.
- Paranthan Chemical Zone – A joint venture with Paranthan Chemicals Company Ltd., this zone will focus on chemical manufacturing and related sectors.
Herath assured that these zones would provide an enhanced business ecosystem and facilitate new opportunities for local and foreign investors alike.