Dr Sarath Obeysekera

The recent engagement by Presidential Special Envoy for Foreign Investment Hanif Yusoof with American business leaders in Washington is undoubtedly a positive initiative. 

Meeting representatives from major corporations such as Apple, Boeing, and Mastercard and presenting Sri Lanka’s potential in ports, logistics, renewable energy, technology, tourism, aviation, and healthcare sends a welcome message that Sri Lanka is once again open for business.
However, attracting investors requires much more than conducting roadshows and making presentations abroad.

 Investors do not invest in PowerPoint presentations; they invest in countries where agreements are honoured, approvals are timely, and policies remain predictable irrespective of political changes.

As an investor in Sri Lanka’s marine industry, my own experience illustrates why many local and foreign investors remain hesitant.

In 2012, I pursued the establishment of a yacht repair and boat-building facility. Obtaining approvals took nearly two years because of bureaucracy, multiple agencies, and political interference. Ultimately, the agreement was cancelled due to changing political circumstances and a lack of support from key decision-makers.

A similar experience occurred with the Modera Boat Yard project. Following all procedures and receiving board approvals, a foreign investment of approximately US$12 million was mobilised. Yet, after a change in political leadership, the project was opposed because it had originated under a previous minister. The landlord agency was pressured into terminating the agreement, and the investors were effectively expelled.

The result is visible today. Valuable harbour infrastructure remains underutilised, investment opportunities have been lost, employment has not materialised, and the country continues to speak of attracting foreign direct investment while simultaneously driving away genuine investors.
This is not an isolated case. Across Sri Lanka, many investors encounter:

• Excessive red tape and prolonged approval processes.
• Multiple institutions exercising overlapping authority.
• Political interference in commercial decisions.
• Frequent policy changes following changes in government.
• Public officers unwilling to take decisions for fear of future investigations or persecution.
• Uncertainty regarding the sanctity of contracts and investment agreements.

The Government frequently speaks of improving the ease of doing business. What investors seek, however, is not merely ease of doing business but certainty of doing business.

The message delivered in Washington—that Sri Lanka is open for business and ready to compete for investment”—will only be credible if investors on the ground experience the same reality.

The Board of Investment (BOI), for example, often requires prospective investors to open an Inward Investment Account and deposit funds locally merely to demonstrate financial capacity before their proposals are seriously considered. While due diligence is necessary, procedures should not become barriers that discourage genuine investors.
Sri Lanka’s competitive advantage is undeniable. It possesses one of the world’s most strategic locations in the Indian Ocean, an educated workforce, democratic institutions, and significant potential in maritime services, logistics, renewable energy, tourism, and advanced manufacturing.
Yet these advantages are undermined by institutional weaknesses.
Singapore did not become an investment hub simply because of geography. It succeeded because investors knew that contracts would be respected, bureaucratic processes would be efficient, and political transitions would not jeopardise investments

Sri Lanka must learn this lesson.

The Cabinet should recognise the urgent need to depoliticise investment decisions and establish a stable and predictable investment framework. Investment approvals should be based on transparent criteria rather than ministerial preferences. 

Agreements entered into by one administration must be respected by successive administrations. Public officials must be empowered to make decisions without fear of persecution, provided they act within the law and established procedures.
The country does not suffer from a lack of international promotion. Sri Lanka has held countless investment forums and roadshows across the world over several decades.
What Sri Lanka lacks is investor confidence.
The most effective investment promotion campaign would not be another overseas presentation. It would be the testimony of existing investors saying:
Come to Sri Lanka. The Government honoured its agreements, approvals were efficient, and our investments were protected.”

Until Sri Lanka eliminates bureaucratic delays, reduces political interference, and guarantees policy consistency, roadshows abroad will generate headlines but not necessarily investments.
Foreign investors are not looking merely for opportunities. They are looking for certainty.
That certainty remains Sri Lanka’s greatest challenge.

Regards

Dr Sarath Obeysekera