The chairman of the BOI, Mr. Arjuna Herath, and senior officials met with the Sri Lankan foreign services designated Ambassadors and diplomatic representatives led by Sumith Dissanayake, DG, Human Resources, and Mission Development, and discussed the way forward for FDI attraction to Sri Lanka 

 

During the meeting, Mr. Herath also spoke about the need for targeted marketing initiatives and the establishment of incentives that would attract foreign investors. He encouraged the ambassadors to leverage their networks to create opportunities for partnership and investment in Sri Lanka’s growing economy.  Mr. Hearth revisited recent economic developments and the significant turnaround in economic indicators. The significant GDP performance, which outperformed the forecasted 4.4% and realized 5 % growth, is due to the reliance of the Sri Lankan economy.  The post-economic crisis period results in better performance in sectors such as tourism and construction. 

 

During the meeting, the context of the Sri Lankan economic landscape and its stance on FDI attraction were further discussed. The monetary discipline, the Central Bank’s commitment to maintaining a stable and predictable money supply, is crucial for achieving price stability and a healthy economic environment. This has been achieved through various monetary policy instruments present-day context. This was evident in such areas as interest rate adjustments and open market operations, managing inflation (single-digit), and maintaining a stable exchange rate.  Further, it was discussed that healthier foreign reserves, in 2024 USD 7 billion, and aiming at USD 8 billion in 2025.  Hence, it is evident that almost every aspect of the economic landscape brings positive indicators to investors; it would be a catalyst and provide a better platform for the Sri Lankan foreign mission overseas to promote the country. 

 

The government’s commitment to debt restructuring and the IMF’s approval of the government’s effort to fulfill the economic transformation of the country, and normalizing the political ecosystem, and the effort of anticorruption, further discussed with the diplomatic community and explored new avenues to boost the image of the country. 

 

Mr. Arjuna Hearth further elaborated about the BOI road map to facilitate the investor requirements by providing new opportunities to them with a better ecosystem for doing business in Sri Lanka. 

The regional Industrial Zones, in addition to the existing 15 BOI Zones, will see the Government accelerate the implementation of five more zones in various geographic locations.  

Kankesanthurai (KKS) Manufacturing Zone focuses on the Apparel Industry, with potential for diversification. Paranthan – Chemical Zone is a joint venture between BOI and Paranthan Chemicals Company Ltd., focusing on chemical manufacturing and related sectors.  

Mankulam – Agricultural Zone leverages local agricultural resources such as paddy, dairy, and fisheries, aiming to enhance value addition in the agricultural sector. Infrastructure development includes a planned extension of the railway line to the zone.  

Iranawila – Tourism Zone is targeted at tourism and leisure-related development. Trincomalee – Energy & Logistics Hub focuses on energy logistics, integrating Trincomalee port with the oil storage facilities.

During the meeting, ideas were contemplated on how technology and digital transformation serve in the context of FDI attraction, and the new development of the policy that supports technology parks was discussed. 

Two new technology parks are planned in Kurunegala and Galle, as an initial drive to create a segment for digital FDI, focusing more on Information Technology and innovation-based industries. The modality will be based upon Public-Private Partnership (PPP) models are being considered for the development and implementation of technology parks to be launched in the last quarter of 2025. 

The BOI chairman and officials and designated ambassadors express their idea of how the Sri Lankan foreign mission works together with BOI and brings much-needed synergy to make Sri Lanka as a most preferred destination for FDI in South Asia.