Without concessions, Sri Lanka needs hard reforms to attract FDI: BOI Chairman

Cites construction and energy costs highest in the region ■ Challenging to compete against concessions provided in other markets

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BOARD of Investment Chairman Arjuna Herath said Sri Lanka must push through structural reforms to attract between $ 2 billion and $ 2.3 billion in foreign direct investment, stressing that the country cannot compete with the scale of fiscal concessions offered by other investment destinations.

Speaking at the Nations Trust Bank Investment Forum last week, Herath said Sri Lanka does not have the fiscal space to match concession-heavy regimes deployed by larger and better capitalised economies, and must instead build competitiveness through lower costs, policy certainty and institutional efficiency.

Herath said attracting investment would depend on creating a predictable and credible framework rather than relying on incentives the country cannot afford.