Sri Lanka’s Pro-Transparency Reforms Attract Global Investors mainly USA
By: Staff Writer
March 17, Colombo (LNW): Sri Lanka’s commitment to transparency, anti-corruption measures, and investor-friendly policies has rekindled interest among international investors.
This sentiment was evident at the Business Roundtable held in Washington D.C. on March 11, where Sri Lankan Ambassador to the US, Mahinda Samarasinghe, engaged with US business leaders.
The event was organized by the US Business Council for International Understanding in partnership with Washington Global Advisors.
Over 25 corporate representatives, including former US Ambassadors to Sri Lanka now serving in major US firms, attended the discussion. Many participants acknowledged the recent political changes in both Sri Lanka and the US, with particular enthusiasm for President Anura Kumara Disanayake’s strong anti-corruption stance. His governance reforms have reinvigorated investor confidence, making Sri Lanka an attractive destination once again.
Ambassador Samarasinghe provided an overview of Sri Lanka’s financial crisis in 2022, attributing it to years of economic mismanagement, nepotism, and corruption. He recounted his role in initiating discussions with the International Monetary Fund (IMF), which led to Sri Lanka securing an Extended Fund Facility (EFF) program. He expressed gratitude for the crucial support from the US, particularly the US Treasury, in helping Sri Lanka stabilize its economy.
Highlighting Sri Lanka’s remarkable turnaround, the Ambassador noted that the country had moved from economic decline to positive growth, with a projected 5% expansion in 2025. Additionally, Sri Lanka now has the capacity to finance nearly four months of imports. This recovery has sparked renewed investor interest, further strengthened by the IMF’s endorsement of Sri Lanka as a model for economic stability and policy continuity, despite political transitions.
Ambassador Samarasinghe emphasized Sri Lanka’s key advantages for foreign investors, including its 92% literacy rate—the highest in South Asia—a highly skilled workforce, and a strategic location along vital Indian Ocean trade routes. He also reassured investors of Sri Lanka’s constitutional protections for foreign direct investment (FDI) and its long-standing commitment to the private sector as the primary driver of economic growth.
He reminded attendees of Sri Lanka’s pioneering role in South Asia’s economic liberalization, having embraced free-market policies as early as 1977. The country now boasts 15 thriving Free Trade Zones, offering lucrative incentives for foreign investors. Notably, the government has remained steadfast in its belief that private enterprise should be the main force behind economic growth, despite changes in political leadership over the years.
The Ambassador outlined key investment opportunities available to US companies, including the Colombo Port City project, which offers a 25-year tax holiday, and the Trincomalee oil tank facility, strategically linked to one of the world’s best deep-water harbors. He also stressed the potential for stronger bilateral cooperation between Sri Lanka and the US in maintaining freedom of navigation in the South Asian region.
