By Dr. Sarath Obeysekera

Sri Lanka stands at a pivotal moment with the new government trying to woo investors and bring FDI

 Surrounded by one of the world’s busiest maritime corridors and blessed with vast ocean resources, the island nation has the potential to transform its economy by embracing the blue economy. To do this, Sri Lanka must move beyond traditional tourism and low-value exports and aggressively promote foreign direct investment (FDI) in high-value ocean-related industries.

# Offshore Engineering Hub in Trincomalee

Trncomalee offers one of the deepest and safest natural harbours in Asia. It could serve as a nucleus for the offshore engineering sector, attracting foreign consultancy and engineering firms with EPCM backgrounds to set up in Sri Lanka. Establishing design offices, fabrication yards, and training centres in Trincomalee would allow Sri Lanka to tap into lucrative global offshore oil, gas, and renewable projects.

# Port City as a Magnet for Expertise and Capital

The Colombo Port City development can be positioned as an international offshore engineering and project management hub. By offering tax incentives, liberal visa regimes, and high-quality housing, Sri Lanka can attract expatriate professionals and global service providers. This would bring technical know-how and business networks into the country, helping local firms climb the value chain.

# Unlocking Marine Resources

The island’s Exclusive Economic Zone (EEZ) covers an area eight times its land mass. This provides opportunities for:

• Offshore mineral resource exploration and development
• Deep-sea tuna farming using advanced aquaculture systems
• Green hydrogen production using offshore wind and solar platforms, aimed at export markets hungry for clean energy

# Tourism Meets Marine Infrastructure

Sri Lanka can integrate tourism and fisheries development by establishing mini-marinas at fishery harbours, enabling small craft tourism, yacht charters, and eco-adventure tours. Developing a mega-yacht marina at Colombo Port City and improving facilities such as the Kapparatota breakwater in Weligama would encourage public-private partnerships (PPPs) and attract international marina operators.

# Policy and Incentives

To succeed, Sri Lanka must create a coherent policy framework offering:

• Targeted tax incentives for ocean-related FDI
• PPP-friendly regulations for marina and harbour development
• Stable foreign exchange and customs rules for offshore investors
• Joint training initiatives with international universities and engineering bodies

# A New Vision for the Indian Ocean Region

By becoming a centre for offshore engineering, aquaculture, renewable energy, and marine tourism, Sri Lanka can position itself as a Blue Economy Gateway” to South Asia. This will not only generate high-value jobs but also elevate the country’s technological capabilities, bringing in expertise from Europe, the Middle East, and Asia.

Sri Lanka’s future prosperity lies offshore. With bold policy moves, strategic infrastructure, and a welcoming environment for expatriates and investors, the island can transform its maritime advantage into long-term economic growth.

Dr. Sarath Obeysekera is the Chairman of the Advisory Board for Marine and Offshore Industry under the Export Development Board and former CEO of Colombo Dockyard.

Regards

Dr Sarath Obeysekera