IMF ACTS AS BIGGEST IMPEDIMENT IN DRAWING FDIS TO SRI LANKA

As policies render country unattractive

- By DILINA KULATHUNGA

While Sri Lanka has managed to push its Foreign Direct Investments (FDIs) slightly atop the billion dollar mark in 2025, the International Monetary Fund (IMF) policies have put the country in a bind in having polices, particularly when it comes to taxation in making the country an attractive destination for international investors.

Sri Lanka is estimated to have attracted FDIs of around US $ 1.1 billion for 2025, little under twice as much as the US 614 million the country received in 2024.

Arjuna Herath, the Chairman of the Board of Investment, the one stop shop for attracting investments in December announced that he would step down from his post by the end of this month, just under 16 months into his tenure.