Sri Lanka pitches stability, stellar rebound at Singapore investment forum

Economic Development Deputy Minister Prof. Anil J. Fernando says investment-led growth key to reversing "lost decade" at Invest Sri Lanka investment forum held in Singapore yesterday organised by SEC, CSE Notes capital expenditure difficult but essential for growth Says Govt. aiming for stable policy environment; single-window for investments planned Lists priority sectors: energy, tourism, manufacturing, agriculture, digitalisation, logistics; nuclear, oil and gas under consideration CBSL Governor Dr. Nandalal Weerasinghe forecasts 5% growth for 2025 Says IMF targets reached ahead of expectations Says State no longer crowding out private credit; inflation to stay stable Reserves build up organic, not debt-driven Notes debt restructuring completion could lift rating from CCC+ to B Tells investors now is the time: 'Wait for B sovereign credit rating and it may be too late'

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LABOUR Minister and Economic Development Deputy Minister Prof. Anil J. Fernando yesterday told investors in Singapore that the Government was seeking to position the country as a more predictable and competitive investment destination, with fis-

cal discipline, regulatory reforms, and sector-specific opportunities forming the core of its strategy.

He said this at the 'Invest Sri Lanka' forum in Singapore yesterday, organised by the Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE).

Prof. Fernando, a first-time Minister, said Government policy is focused on implementation and public interest rather than the presentation of new plans.

"What matters is whether these policies can be implemented and implemented for whom, for the benefit of the public interest, and in what context," he said. “We will never ever use this mandate to serve private interests.”

The Minister said investment-led growth is central to reversing what he called a “lost decade” in terms of technological and human capital advancement. With limited fiscal space under the IMF program, public finances are being managed under new laws, the Public Debt Management Act and the Public Financial Management Act, which impose debt and expenditure limits.

The debt-to-GDP ratio target is set at 95% by 2032, though current progress suggests the target could be met earlier. Primary expenditure, excluding interest, is capped at 13% of forecast GDP, with the primary balance target for 2024 already surpassed in the first half of the year: Public investment is subject to a minimum 4% of GDP cap, with 2025 capital expenditure focused on infrastructure such as roads, bridges, and digital connectivity Budget allocations, he said, are now aligned with published fiscal strategies rather than ministerial discretion.