BOI sees new investor interests

BOI Chairman Arjuna Herath says Indian apparel sector considering subcontracting to Sri Lanka to offset US tariffs

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THE BOI is positioning Sri Lanka as an investment hub in South Asia, with rising interest from Indian-based US companies, and those from Japan, and Vietnam in addition to investors from India and China.

BOI Chairman Arjuna Herath told Daily FT that investors have immense potential to use the island as a gateway to South Asia and European markets.

Herath told Daily FT that apparel buyers from India and Indian apparel manufacturers, facing high reciprocal tariffs from the Trump administration, are considering subcontracting and order-sharing with Sri Lankan producers. “We have been talking to Sri Lankan apparel manufacturers to consider these arrangements because one way we all can deal with global trade uncertainties is to strengthen South-South collaboration,” he said.

A consortium of US firms operating in India has also begun exploring opportunities in Sri Lanka. The US Chamber of Commerce in India engaged the BOI in discussions that may include joint ventures. “The US Chamber of Commerce in India has a mandate to build partnerships in South Asia, and they are showing a keen interest in Sri Lanka. We hope to advance the India Plus One model, which will be beneficial for both countries,” Herath said.