FINANCIAL CHRONICLE — The ongoing conflict in West Asia poses a threat to the global prominence of cities like Dubai and Doha, creating an opportunity for Sri Lanka to emerge as a secure destination for investment and skilled professionals in the Indian Ocean, provided that appropriate reforms are implemented, according to an economist.
Ganeshan Wignaraja, a Visiting Senior Fellow at ODI and former Director of Research at the ADB Institute in Tokyo, suggested that as regions like West Asia face challenges, Sri Lanka could attract capital and talent. “Can we establish ourselves as a sort of hub in the Indian Ocean?” he posed during a discussion titled ‘A Global Economy in the Shadow of Middle-East War: Implications for Sri Lanka’s Debt Recovery’ hosted at the Regional Centre for Strategic Studies in Colombo.
Wignaraja emphasized the importance of maintaining macroeconomic stability and called for reforms aimed at transforming the nation’s economic recovery into a strategic positioning as a financial center in the region.
However, he noted that obstacles such as bureaucratic hurdles and stringent labor regulations continue to impede foreign direct investment (FDI). Recent cybersecurity issues within the Treasury and instances of internal fraud in the banking sector further underscore the urgent need for a stronger digital and legal framework to attract multinational corporations.
Sri Lanka remains under close watch from the international community following its default in 2022. (Colombo/May6/2026)
