IFC says 'Sri Lanka cannot get rich by looking inward'

THE International Finance Corporation (IFC) says Sri Lanka must reposition itself globally as a sustainable, export-driven, and outward-looking investment destination, while fixing longstanding issues around policy predictability and the business environment to unlock its full potential.

- BY CHARUMINI DE SILVA

Speaking at the Sri Lanka Economic Summit, IFC's South Asia Regional Director Imad Fakhoury outlined why the institution continues to maintain a strong and diversified presence in the country despite recent economic shocks.

"Sri Lanka cannot get rich by looking inward," he implied, calling for a continued push toward competitiveness, investment attraction and export-oriented growth.

He said Sri Lanka must redesign its global investment brand after years of stop-start progress and recurring economic crises.

"Sri Lanka has an incredible paradox. On one hand, it's a great development success story with strong social indicators, low poverty, and one of the highest per-capita incomes in South Asia. But we also have had a lot of economic crises, the last in 2022," he observed.

Fakhoury urged policymakers and the private sector to shift the country's international positioning. "Sri Lanka has to position itself as a green sustainable brand, as an outward-looking brand, as an export-driven brand," he said.