President Anura Kumara Dissanayake has pledged to accelerate the approval process for new investments by streamlining bureaucratic procedures, aiming to drive higher economic growth in Sri Lanka.
Speaking at the Sri Lanka Economic Summit organized by The Ceylon Chamber of Commerce, the President highlighted the prolonged approval timelines for investments, stating that securing clearance currently requires approvals from 82 different institutions and takes over two and a half years.
“For environmental approvals alone, investors must go through 11 institutions, a process that takes around 269 days. We aim to reduce this timeframe to less than 82 days,” Dissanayake assured. Additionally, investment projects requiring approvals from eight other institutions currently take 184 weeks, a duration the Government plans to shorten to 102 days. The Board of Investment (BOI) itself takes around 80 days to assess and decide on a project, but the target is to cut this down to under two weeks.
Dissanayake criticized previous administrations for failing to attract investments effectively and noted that the BOI had not operated efficiently. He revealed that the Government plans to improve the investment climate through the Economic Transformation Act, incorporating necessary amendments to facilitate smoother approvals.
“If we expect a higher rate of economic growth, we must ensure that all necessary processes for attracting foreign direct investment are efficient and investor-friendly,” he emphasized.
The Government is targeting an economic growth rate of over 4% in 2025, following a 5% growth from a low base in 2023. Key sectors identified for accelerated growth include tourism, IT, and maritime industries. The President highlighted ambitious tourism goals, aiming to attract over 3 million visitors this year.
The maritime sector is also set to benefit from major developments, with operations at the Colombo Port’s Western Terminal expected to commence in March and the Eastern Terminal by July, significantly boosting Sri Lanka’s position as a regional shipping hub.
By prioritizing structural reforms and fast-tracking investment approvals, the Government aims to enhance Sri Lanka’s business environment and drive sustainable economic growth.