Rebuilding Investor Confidence - Charting the Path for Sri Lanka's Next Wave of Foreign Investments

OUR AMBASSADORS SHOULD NOT BE JUST COCKTAIL AMBASSADORS, SHOULD BE THE COUNTRY'S CHIEF MARKETING MANAGER

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Ambassador Kananathan - a businessman-turned-diplomat speaks to DM on how Sri Lanka can attract greater foreign direct investment (FDI) and reposition itself as a competitive destination for global investors. Excerpts:

How would you describe the current economic landscape in Sri Lanka from an investor's perspective?

Sri Lanka is now at a critical turning point. After weathering a severe economic crisis, we're seeing stabilization -debt restructuring is progressing, inflation has eased, and confidence is gradually returning. Yet, foreign investors are still cautious. They want consistency, predictability, and clarity. The fundamentals are improving, but policy credibility and execution speed will determine how fast we can truly attract long-term capital.

What are the biggest obstacles foreign investors face when considering Sri Lanka?

The challenges are mostly procedural and institutional rather than resource-based. Sri Lanka offers strategic location, skilled labor, and access to major markets, but investors face a maze of approvals -permits, environmental clearances, and sectoral licenses that often require running from ministry to ministry. This not only delays projects but also creates uncertainty.

You've mentioned bureaucracy. How can the Board of Investment/Investment Authority help cut through that red tape?

The BOI must evolve into a true "one-stop investment center." That means not just branding itself as one. but functionally integrating representatives from every key ministry-finance, environment, power, ports, customs, Immigration and labour-under one roof.

If the BOI is empowered to issue all clearances and permits after inter-ministerial coordination, an investor wouldn't need to visit ten different offices. That's the model followed in countries like Singapore, Vietnam, Kenya and many African countries where approval time has been cut from months to weeks.