Corruption cuts, clean contracts could attract foreign investors
Sri Lanka’s Government has urged foreign investors to enter its capital market, as the country aims to achieve higher growth without corruption, following the restoration of stability.
The new policy thrust aims to expand the production economy and aid businesses achieve their next growth phase. The government has ensured clarity, consistency, and continuity, citing the 2025 Budget and the continuity of the International Monetary Fund (IMF) programme, top government politicians/planners told an international investor forum on Thursday in Colombo.
The new government has exhibited zero tolerance for corruption and malpractices, allowing investors to start their businesses or investments without paying politicians while taking the rebound in confidence to the next level, with positives such as the revival of the economy, the Colombo stock market, and tourism, Deputy Minister for Finance and Planning Harshana Suriyapperuma emphasised at the Investor Forum 2025 organised by the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) that foreign investors can capitalise on this substantial growth opportunity and potential.
Dignitaries at the conference. Pic by Akila Jayawardena.
The new administration has taken forward the IMF programme with adjustments being made acknowledging that the government has openly mentioned continuing with the programme as provisions had to be made to support vulnerable segments due to economic catastrophes.
Early investors who took positions in the stock market before the elections have seen gains, and the stock exchange is a testimony to the market’s performance since the election, he noted. The new government is pursuing an economic policy to facilitate value generation and capital formation, focusing on enhancing exports and investment while reducing corruption. Dr. Suriyapperuma added that the capital market can play a pivotal role in reducing Sri Lanka’s gap between savings and investment.
Central Bank of Sri Lanka (CB) Governor Dr. Nandalal Weerasinghe assured foreign investors that Sri Lanka now offers stability and predictability. Deloitte Sri Lanka and Maldives Head – Strategy, Risk and Transactions, Ruvini Fernando, enlightened foreign investors with a presentation on Sri Lanka and high investment potential sectors.
Tundra Fonder AB Founding Partner/Chief Investment Officer Mattias Martinsson expressed confidence that Sri Lanka can once again be a haven for emerging market investors. “As a service driven economy, with unique competitive advantages from being a growing transshipment hub but also with strong advantages in the leisure sector, Sri Lanka should be able to bridge its balance of payments going forward and the economy should be able to grow more stable than most frontier markets which are more cyclical in nature,” he told The Sunday Times Business on the sidelines of the event.
He noted that Sri Lanka has pre-conditions for a return to safe-haven status and that services sectors such as tourism and logistics have great growth prospects.
Sri Lanka needs adequate investments in improving physical and digital infrastructure, he said, “I believe this is key for the service sectors to thrive (and to be able to accommodate more tourists). Digital infrastructure is a key to improving ease of doing business, and a strong set-up (like Singapore) simplifies it for new businesses to grow.”
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