German firms express confidence in Sri Lanka despite global economic headwinds

GERMAN companies operating in Sri Lanka have expressed a notably optimistic outlook for the year ahead, signalling confidence in the country's economic prospects despite ongoing global economic headwinds according to the Spring 2025 AHK Business Barometer unveiled last week by the Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka).

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The survey, based on responses from 54.

German-affiliated businesses in Sri Lanka, revealed that 54% rated their current situation as "good," with none reporting a negative outlook.

Looking forward, 66% of respondents expect business conditions to improve over the next 12 months, while 32% anticipate stability, leaving only one company predicting a decline in business performance.

The findings presented by AHK Sri Lanka Chief Delegate Martin Klose at a high-level Breakfast Dialogue in Colombo, reflect a'cautiously optimistic' sentiment among German firms despite ongoing global economic uncertainties.

Citing the survey, Klose said this positive sentiment stands stark contrast to the broader global scenario, particularly in Germany, where companies are grappling with shrinking GDP forecasts, weak demand and rising labour costs.

He said as per the survey, at home, German firms are reporting declining exports and investments intentions, coupled with pessimism about job growth. However, the Sri Lankan context appears to challenge that trend.