Sri Lanka is extending tax holidays of up to 15 years and positioning Colombo Port City as a burgeoning financial and trade hub, aiming to attract investors from the UAE amid a backdrop of renewed political and economic stability, according to a senior minister.
Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development, informed Gulf News that the government is enhancing investment approvals and incentives to establish Sri Lanka as a predictable and competitive location for foreign capital.
“We have two broad investment opportunities – the Colombo Port City, which is being developed as a regional financial hub, and projects under the Board of Investment,” Abeysinghe stated during the Invest Sri Lanka Investor Forum in Dubai.
“Some investments qualify for tax holidays of up to 15 years, along with other incentives. With the new Investment Promotion Act, all of this will be streamlined and made clearer,” he added.
Abeysinghe emphasized Sri Lanka’s political neutrality and expanding trade access, which make it an appealing choice for Middle Eastern businesses seeking a regional base.
“Sri Lanka can trade and work with any country. We engage with China, the US, India, and the Middle East,” he explained, highlighting that the country’s neutral foreign policy provides investors access to global trade and investment routes.
He also noted that Sri Lanka already enjoys preferential access to European markets and is negotiating further trade agreements.
The deputy minister identified agriculture, tourism, maritime logistics, and renewable energy as priority sectors for foreign investors.
“Agricultural transformation is a major opportunity, particularly in crops unique to Sri Lanka,” Abeysinghe mentioned. “There is also strong potential in luxury tourism, especially for Middle Eastern travelers, as well as in ports and maritime investments connecting East–West trade routes.”
Renewable energy, including green hydrogen and long-term energy storage, was another focus area, he noted.
On his inaugural visit to Dubai, Abeysinghe outlined the government’s ambition to draw inspiration from Dubai’s economic transformation.
“The trajectory is clear. Stability is in place and reforms are underway,” he remarked. “We talk about Vietnam, South Korea, and India’s turnaround. We talk about how Dubai rose, and next is going to be Sri Lanka.”
Abeysinghe acknowledged that Sri Lanka had missed growth opportunities over the past three decades due to delayed reforms, policy inconsistency, and corruption, but noted that the situation has changed since 2022.
“Our economy is now stable and predictable. Key reforms are being implemented, policies are consistent, and the legal framework for investment is being strengthened,” he stated.
Sri Lanka has surpassed its fiscal and macroeconomic targets for 2024 and 2025, while land policy reforms and the digitization of government services through GovPay are eliminating long-standing investment barriers, he added.
“This is no longer a gamble. Investors can be part of Sri Lanka’s growth journey as long-term stakeholders,” Abeysinghe concluded.
