{"id":157010,"date":"2026-06-29T16:29:03","date_gmt":"2026-06-29T23:29:03","guid":{"rendered":"https:\/\/www.lankaweb.com\/news\/items\/?p=157010"},"modified":"2026-06-29T16:29:03","modified_gmt":"2026-06-29T23:29:03","slug":"sri-lanka-must-reform-its-approach-to-foreign-direct-investment","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2026\/06\/29\/sri-lanka-must-reform-its-approach-to-foreign-direct-investment\/","title":{"rendered":"Sri Lanka Must Reform Its Approach to Foreign Direct Investment"},"content":{"rendered":"

Dr Sarath Obeysekera<\/em><\/span><\/h2>\n\n\n


<\/strong>Sri Lanka has no shortage of strategic advantages. Our location, skilled workforce, natural harbours, fertile land, and maritime heritage make us an attractive destination for foreign direct investment (FDI). Yet, time and again, promising investment opportunities have slipped through our fingers.<\/p>\n\n\n\n

Several years ago, a Saudi investor expressed serious interest in establishing a modern shipyard in Galle Harbour. <\/p>\n\n\n\n

The project had progressed through the required approvals, including Cabinet approval. However, with changes in political leadership and a lack of consistent government support, the investment gradually lost momentum. The investors eventually abandoned the project and left Sri Lanka.<\/p>\n\n\n\n


Around the same period, a state-backed foreign agency explored opportunities to develop large-scale vegetable farming and goat farming in Sri Lanka. They were so impressed with the country\u2019s potential that they undertook aerial surveys of the Eastern Province by helicopter and expressed willingness to establish farming villages while guaranteeing purchases of the produce. They viewed Sri Lanka as a safe and reliable investment destination.<\/p>\n\n\n\n


Unfortunately, the project too was abandoned after allegations that an influential individual had sought an improper financial benefit. Whether every allegation can be substantiated or not, the perception of corruption alone is enough to discourage serious investors.
These are not isolated stories. Similar experiences have been shared by many investors over the years. International investors seek transparency, policy consistency, speed of approvals, and protection from political interference. They are prepared to take commercial risks, but not governance risks<\/p>\n\n\n\n


Countries such as Singapore transformed themselves into global investment hubs not merely through infrastructure, but by building trust. Investors knew that agreements would be honoured, approvals would be predictable, and corruption would not be tolerated.<\/p>\n\n\n\n


If Sri Lanka genuinely wishes to become a developed nation, attracting quality FDI must become a national priority rather than a political opportunity. Investment approvals should be handled through transparent, professional institutions insulated from political influence. Every investor, whether large or small, should receive equal treatment under the law.<\/p>\n\n\n\n


The cost of losing a major investment extends far beyond the immediate project. It means lost employment, lost exports, lost technology transfer, and lost confidence. Worse still, disappointed investors rarely return, and they share their experiences with others across the global investment community.
Sri Lanka cannot afford to lose another generation of investment opportunities. The question is no longer whether we can attract investors. It is whether we can create an environment where they have the confidence to stay.
Good governance is not merely an ethical principle\u2014it is one of the nation\u2019s most valuable economic assets.<\/p>\n\n\n\n

Dr Sarath Obeysekera<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Dr Sarath Obeysekera Sri Lanka has no shortage of strategic advantages. Our location, skilled workforce, natural harbours, fertile land, and maritime heritage make us an attractive destination for foreign direct investment (FDI). Yet, time and again, promising investment opportunities have slipped through our fingers. Several years ago, a Saudi investor expressed serious interest in establishing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[116],"tags":[],"class_list":["post-157010","post","type-post","status-publish","format-standard","hentry","category-dr-sarath-obeysekera"],"_links":{"self":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/157010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/comments?post=157010"}],"version-history":[{"count":1,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/157010\/revisions"}],"predecessor-version":[{"id":157011,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/posts\/157010\/revisions\/157011"}],"wp:attachment":[{"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/media?parent=157010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/categories?post=157010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lankaweb.com\/news\/items\/wp-json\/wp\/v2\/tags?post=157010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}