Sri Lanka is actively encouraging foreign investment across various sectors, as emphasized by Dr. Sulakshana Jayawardena, the Acting Chairman of the Board of Investment (BOI), during his address to Vietnamese business leaders and officials at the Sri Lanka-Vietnam Trade, Investment & Tourism Cooperation Forum held on May 8, 2026. Following a challenging economic crisis, Dr. Jayawardena assured attendees that the nation is experiencing a resurgence in macroeconomic stability, improved investor confidence, and a well-defined growth strategy. He presented compelling reasons for international investors, especially those from Vietnam and Southeast Asia, to consider the thirty project-ready investment opportunities available in Sri Lanka.
Dr. Jayawardena provided an overview of Sri Lanka’s economic recovery, citing macroeconomic indicators as evidence of progress. After a contraction of 2.3% in 2023, the economy rebounded with a 5.0% GDP growth in both 2024 and 2025—surprising even the most cautious analysts. The Central Bank anticipates a continued growth rate of around 4.0% in 2026. Additionally, merchandise exports grew from $11.9 billion in 2023 to $13.6 billion in 2025, with a target of $15.7 billion for the current year. Tourism revenues also rose significantly, from $2.07 billion to $3.22 billion during the same period, fueled by more than 2.3 million international visitors in 2025.
For investors, the resurgence of foreign direct investment (FDI) serves as a strong indicator of renewed confidence, with inflows reaching $1.063 billion in 2025—almost double the $614 million reported in 2024. A target of $1.5 billion in FDI has been set for 2026. “Sri Lanka has effectively addressed its crisis and is now on a growth trajectory,” Dr. Jayawardena stated.
Dr. Jayawardena emphasized Vietnam’s role not only as a potential market but also as a strategic ally with complementary strengths. He noted the current trade imbalance—Sri Lanka exports approximately $40 million to Vietnam, mainly in apparel, gemstones, seafood, tea, and footwear, while imports from Vietnam total around $238 million, predominantly textiles, iron and steel, plastics, and machinery. Rather than viewing this disparity as a deficit, he suggested utilizing it as a foundation for collaborative growth.
He pointed out that Vietnam’s successful manufacturing and export processing strategies could provide valuable insights for Sri Lanka, especially in establishing industrial zones. Furthermore, Sri Lanka’s preferential trade agreements with the EU, UK, India, and Pakistan present immediate opportunities for Vietnamese manufacturers aiming to explore new markets. Both nations are well-positioned to capitalize on the global trend of diversifying Asian supply chains, a shift that has intensified recently, with Vietnam’s integration into ASEAN offering Sri Lanka a pathway to broader economic collaboration in Southeast Asia.
Central to his investment appeal was Sri Lanka’s advantageous geographic location. The Colombo Port is ranked 28th globally among container ports and is situated along a major East-West shipping route frequented by over 300 vessels daily. This route, which lies south of Sri Lanka, accounts for approximately 70% of global oil shipments and 50% of container traffic, establishing the island as a key logistics hub for international trade. Additionally, the country is served by two international airports that manage over 64,000 aircraft movements, 10 million passengers, and more than 188,800 tonnes of air cargo each year.
Dr. Jayawardena also underscored the importance of Sri Lanka’s skilled workforce, which is often underestimated by foreign investors. The country boasts the highest literacy rates in South Asia and has developed a proficient English-speaking labor force. Notably, Sri Lanka has the second-largest number of CIMA-qualified professionals worldwide, highlighting the strength of its professional services sector. Annually, around 44,000 university graduates emerge from 18 state universities and 19 higher education institutions, supported by 1,346 tertiary and vocational training centers, with an additional 225,000 students completing technical and vocational programs each year.
Regarding market access, Dr. Jayawardena stressed that few countries of Sri Lanka’s size can offer similar opportunities. The EU GSP+ scheme provides zero-duty access for over 6,000 product categories to 27 EU nations, as well as the UK under the UKDCTS arrangement. Bilateral Free Trade Agreements with India and Pakistan allow for duty-free access to the Subcontinent, while pending agreements with Singapore and Thailand will further enhance access to Southeast Asia. Additional preferential arrangements are available through APTA and SAFTA.
He further elaborated on the investment policy framework designed to align with this access while ensuring security for investors. Sri Lanka allows 100% foreign ownership in most sectors and guarantees complete repatriation of profits and capital, protections enshrined in the Constitution. The country has robust intellectual property laws that comply with WIPO standards, membership in the World Bank’s Multilateral Investment Guarantee Agency, and Investment Protection Agreements with 26 nations, along with Double Taxation Relief Agreements with 46 countries, creating a supportive environment for investors throughout their engagement.
In addition to macroeconomic factors, Dr. Jayawardena presented a portfolio of thirty structured, project-ready investment opportunities across five key sectors. In manufacturing and export processing, established strengths in apparel, electronics assembly, rubber products, and light engineering coexist with new initiatives such as seven dairy processing facilities, an Active Pharmaceutical Ingredient plant in a dedicated pharmaceutical zone, a textile manufacturing unit in the Eravur Textile Manufacturing Zone, and an electric vehicle assembly plant in the Southern Province.
Opportunities in logistics and port services aim to fulfill Sri Lanka’s ambitions as an Indian Ocean hub, featuring a multi-storey logistics center in Colombo’s Bloemendhal area, a logistics hub at Colombo Port, integrated warehousing, a customs verification center, and both logistics and aircraft maintenance, repair, and overhaul (MRO) facilities at Mattala International Airport. The tourism and hospitality sector, which already generates over $3.2 billion annually, presents structured opportunities such as a heritage hotel in Kandy, a theme park in Nuwara Eliya, a recreational hub in the Western Province, and a cruise line for an island circle route. Infrastructure and mixed development projects include techno parks, a cinema city, mixed-use developments, and residential apartment complexes.
In closing, Dr. Jayawardena was forthright in his message: “Sri Lanka has turned a new leaf following its economic crisis,” he stated to the Forum. “Macroeconomic stability has been reestablished. An active and investor-friendly policy framework is now in place. And we are equipped with a pipeline of structured, readily available opportunities across high-growth sectors.” He emphasized that for Vietnamese companies seeking to expand into South Asia and leverage Sri Lanka’s strategic access to global markets amidst the ongoing restructuring of Asian supply chains, the timing has never been more opportune. He concluded by affirming that the Board of Investment of Sri Lanka is prepared to facilitate engagement.
