The appointment of Duminda Hulangamuwa as Chairman of the Board of Investment has revived an important policy question confronting Sri Lanka’s investment landscape: Should the country reform the existing BOI or replace it with an entirely new investment promotion architecture?
The answer could shape Sri Lanka’s ability to compete for foreign direct investment over the next decade.
Upon assuming office yesterday, Hulangamuwa promised to restore the BOI’s authority and transform it into a true one-stop investment agency capable of supporting the Government’s drive to increase exports and reduce the country’s chronic trade deficit.
The commitment is ambitious, but it also reopens unresolved institutional debates.
Successive governments have acknowledged that the BOI, once considered one of South Asia’s pioneering investment promotion agencies, no longer exercises the powers necessary to function as a genuine single-window authority. Over time, responsibility for approvals has become dispersed among numerous ministries, regulators and statutory bodies, forcing investors to negotiate multiple institutions before projects can commence.
Recognising these shortcomings, the previous administration had initiated discussions on establishing new investment commissions that would replace or fundamentally restructure the existing system. The proposed model aimed to create specialised agencies with greater autonomy, faster approval mechanisms and internationally benchmarked governance standards.
With Hulangamuwa now taking charge of the existing BOI, the future of those proposals remains uncertain.
Will the Government continue with legislative reforms creating entirely new investment institutions, or will it attempt to modernise the existing BOI from within?
Officials have yet to indicate which direction policymakers intend to pursue.
Hulangamuwa’s professional background suggests he is well positioned to understand both the policy and operational dimensions of the challenge.
A chartered accountant with over 40 years’ experience in taxation, finance and public policy, he recently retired as Country Managing Partner of EY Sri Lanka and Maldives. He also serves as Senior Economic Adviser to the President, representing Sri Lanka in engagements with the IMF and World Bank, while continuing as Chairman of the Ceylon Chamber of Commerce.
These roles place him at the intersection of government policy and private sector expectations.
However, experienced investors argue that leadership alone cannot overcome structural deficiencies embedded in legislation that has failed to keep pace with modern investment competition.
Countries competing aggressively for global capital increasingly offer integrated digital approvals, statutory timelines, coordinated regulatory clearances and dedicated investor aftercare services. Sri Lanka’s institutional arrangements remain comparatively fragmented.
If Hulangamuwa succeeds in restoring the BOI’s authority through administrative reforms backed by political support, calls for establishing new investment commissions may gradually lose momentum.
Conversely, if bureaucratic bottlenecks persist despite new leadership, pressure could quickly return for Parliament to revisit broader structural reforms abandoned following the change of government.
The new chairman therefore assumes office with expectations extending well beyond investment promotion. His tenure may ultimately determine whether Sri Lanka modernises its existing investment agency or concludes that only a completely new institutional framework can deliver the investment climate the economy urgently requires.
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