Sri Lanka Says New Policies Will Attract Global Investors

COLOMBO (News 1st); Sri Lanka is pursuing a series of policy reforms aimed at restoring investor confidence and preventing a repeat of past economic instability, according to Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath. 

Speaking in response to a question by to Sunjoy Joshi, Chairman of the Observer Research Foundation, on structural reforms in taxation, export diversification and governance, Herath said the country’s investment climate has fundamentally changed.

He said Sri Lanka now operates with “zero corruption and zero tolerance” for bribes and malpractice, calling it a major achievement. Because of this, he said, investors can now operate “free and fairly,” a situation that he noted did not exist previously.

Herath added that a new investment protection bill has already been submitted to the relevant authorities. Other measures include the introduction of a single‑window system for investors and a simplified, transparent tariff structure. He said these changes have also led to the highest revenue collections from Customs, Excise and Inland Revenue, attributing this to the government’s stance against corruption.

He emphasized Sri Lanka’s strategic geographic location, describing the island as an international trading hub situated close to major east–west shipping lanes. He said the country currently has a peaceful and stable environment, free of ethnic or religious violence, enabling both local and foreign investors to “easily invest in Sri Lanka.”

Responding to a question on which sectors the government is targeting to capitalize on Sri Lanka’s position in the Indian Ocean, Herath highlighted the island’s major ports. He said Sri Lanka’s location is vital for the logistics industry, noting strong global demand for port‑related services. The Colombo Port, Hambantota Port and Trincomalee Port, the latter described as a natural harbor, are considered the three main facilities that offer international logistical convenience.

Asked about the geopolitical risks Sri Lanka faces as a strategic hub in a period of global insecurity, the minister acknowledged the security threat. He said challenges related to maritime activity affect not only Sri Lanka but also India and many other countries due to the prevailing global geopolitical landscape.

Herath said no single country can face such challenges alone, stressing the importance of regional cooperation. He said Sri Lanka is working with regional bodies such as the Indian Ocean Rim Association (IORA) and BIMSTEC. 

He also noted that a memorandum of understanding between BIMSTEC and IORA was signed last year. As a member of both organizations, Sri Lanka intends to address new challenges through these regional mechanisms.