Courtesy Hiru News

Russian investors are ready to put money into Sri Lanka, but what to invest in—and where—remains a challenge.

This was highlighted by Russian Ambassador to Sri Lanka Levan Dzhagaryan during a media briefing at the Embassy in Colombo today.

The briefing touched on multiple issues, including Russia’s long-discussed proposal to construct a nuclear power plant in the country.

On the nuclear project, Ambassador Dzhagaryan noted:

I raised this issue about the nuclear power plant from the very beginning, and I met with Minister of Energy Jayakody, presented him a letter from the Russian nuclear agency Rosatom, and received no answer. Please raise this question to your authorities.”

While there are ideas for economic cooperation between Russia and Sri Lanka, the Ambassador stressed that several barriers remain.

We had some ideas, some proposals, but we understand that it is a problem for your side because of sanctions. In our cooperation with other countries like Vietnam, Iran, and some other countries, we use our national currency, the Russian Rouble. It’s very popular. In our trade, for example, with some countries, such as China, we mainly use the Chinese yuan or the Russian Rouble. But with your country, it’s impossible. We have no project with Sri Lanka and just… once again because of sanctions. I was even proposing to implement the Russian payment system. We have a card system, MIR, but it’s impossible because all countries that will use this system will be subjected to secondary sanctions. Economic cooperation—no idea so far.”

The Ambassador also addressed the issue of Russian investment inflows into Sri Lanka.

No investments as far as I know, because if it comes from the private sector, it’s up to them. We’re ready to invest, but no projects. And to be frank, some ambassadors were concerned about the atmosphere and the investment climate in Sri Lanka. I read some articles by a former Japanese ambassador, by other ambassadors, that the climate isn’t very easy to invest here because of some problems.”

The briefing underscores the potential for Russian investment in Sri Lanka, but also the significant hurdles—sanctions, payment limitations, and the broader investment climate—that need to be addressed before concrete projects can move forward.