Government Plans Institutional Reforms, Stronger BOI and Targeted Outreach to Attract Foreign Investment
Sri Lanka is preparing to reshape its foreign investment promotion strategy, focusing on institutional reforms, stronger investment laws and targeted engagement with international investors rather than relying on promotional campaigns alone.
Duminda Hulangamuwa, Senior Economic Advisor to the President, said attracting foreign direct investment (FDI) requires more than approaching investors and inviting them to set up businesses. The country must first put the necessary institutional framework, legal structure and infrastructure in place so investors can operate with confidence. “You can’t promote FDI by going and talking to investors and asking them to come and set up industries. It won’t happen overnight. We have to do reforms in certain areas,” he said.
One proposed change is the creation of a separate institution dedicated to investment promotion and research, following a proposal by the President to strengthen the overall investment promotion architecture. Hulangamuwa said Sri Lanka must first establish its presence on the global investment map and build the groundwork to attract sustained international interest.
Strengthening the Board of Investment (BOI) is another major priority, through amendments to its legal framework. The aim is to turn the BOI into a genuine one-stop investment centre with the legal authority to grant the approvals investors need, without having to deal with multiple institutions and lengthy procedures. He revealed that the Government is already drafting these amendments.
The strategy is closely linked to efforts to increase exports and foreign exchange earnings. Hulangamuwa said tourism and goods exports have been identified as key sources of foreign currency, and that FDI must be tied to expanding export capacity. The focus is on securing investments that generate exports, open international market opportunities and strengthen Sri Lanka’s position in global trade. He added that negotiating Free Trade Agreements (FTAs) and securing greater market access for Sri Lankan products are inseparable from investment promotion.
As part of a more targeted approach, the Government has identified about five countries for focused engagement. Instead of relying heavily on large investment forums, it plans to hold direct, one-on-one meetings with investors in those markets, allowing Sri Lanka to present specific opportunities and build stronger relationships.
Hulangamuwa expressed confidence that once the framework is in place, including institutional capacity, infrastructure and global branding, more investors will gradually begin to see Sri Lanka as an investment destination.
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