By Sarath Obeysekera

Sri Lanka appears to have emerged from the worst phase of its recent economic collapse. Foreign reserves have improved, inflation is under control, and confidence has partially returned. Yet beneath the surface, the fundamental weaknesses that brought the nation to its knees remain largely unresolved.

Every day we read reports of the Central Bank purchasing dollars, introducing regulations to stabilize exchange rates, and government agencies proudly announcing record tax and customs revenue. Customs collects billions from duties imposed on imported vehicles, household goods, stationery, plastic products, and countless other items consumed by our people.

But taxation and import duties do not create wealth.

A nation becomes prosperous only when it earns foreign exchange through production, exports, investment, innovation, and services sold to the rest of the world.

Today, Sri Lanka continues to depend heavily on three vulnerable sources of foreign currency: tourism, worker remittances, and traditional exports such as tea, coconut products, spices, and garments. Any external shock, global recession, conflict, pandemic, or change in labour migration patterns can quickly destabilize these earnings.

This is not a sustainable model for a country aspiring to become a regional economic hub.

Trincomalee – The Sleeping Giant

For decades, policymakers have spoken about the strategic importance of Trincomalee. Yet little has moved beyond speeches, studies, and seminars.

Trincomalee possesses one of the finest natural harbours in the world. It has the potential to become an integrated industrial, logistics, energy, ship repair, offshore services, fisheries, and export processing hub serving the entire Bay of Bengal region.

If Sri Lanka is serious about economic transformation, Trincomalee must become the nation’s highest priority development project.

Instead of spending years navigating endless approvals, environmental clearances, committee reports, and bureaucratic procedures, the Government should establish a special economic regime with clear, transparent, and time-bound approvals for strategic investments.

Investors seek certainty. They do not invest where files move from desk to desk for years.

We Export Graduates Instead of Products

Every year Sri Lanka produces graduates in fisheries, marine sciences, engineering, information technology, and numerous technical disciplines.

Yet many leave the country because opportunities are limited.

Why are we not supporting fisheries graduates to establish export-oriented seafood ventures?

Why are we not encouraging marine technology startups?

Why are we not developing value-added industries around our mineral resources instead of exporting raw materials?

The world’s wealthiest nations export knowledge, technology, and value-added products—not merely commodities.

Foreign Direct Investment Must Become a National Mission

The President heads a government with a strong mandate. This is the moment to introduce bold reforms.

State officials often fear making decisions because future investigations may question their actions, even when taken in good faith to facilitate investment.

This culture of fear has become one of the greatest obstacles to economic growth.

Sri Lanka needs legislation that protects public officers who act transparently and honestly in facilitating approved investments.

Corruption must be punished severely.

But honest decision-making must be protected.

Otherwise, no official will take responsibility, and every project will remain trapped in bureaucracy.

Port City Alone Cannot Save the Economy

The Port City project is a valuable national asset. However, selling apartments and office space alone will not generate the economic transformation Sri Lanka requires.

The country must attract multinational corporations, technology firms, offshore engineering companies, marine services providers, energy enterprises, and global financial institutions.

Singapore did not become successful merely by constructing buildings.

It became a centre of excellence that attracted global talent, international businesses, and high-value industries.

Sri Lanka should follow a similar path.

India Must Become a Strategic Development Partner

India’s investment in Colombo Dockyard demonstrates the importance of regional partnerships.

The next logical step is large-scale investment in Trincomalee.

India has strategic interests in the region. Sri Lanka requires capital, technology, and markets.

The interests of both nations can converge in Trincomalee.

What is needed is urgency.

Time Is Running Out

Sri Lanka cannot afford complacency.

We cannot depend forever on remittances, tourism, and traditional exports.

We cannot celebrate tax collections while neglecting wealth creation.

We cannot continue debating while competitors such as Vietnam, India, Indonesia, and the Gulf states aggressively attract investment and create jobs.

History rarely gives nations a second chance.

Sri Lanka has been given one.

The question is whether we will seize it—or waste it.

The President, Parliament, public servants, and private sector leaders must act with courage and speed.

Otherwise, we may once again find ourselves like crabs dancing in a pot already placed on the fire, unaware of the danger until it is too late

Regards

Dr Sarath Obeysekera