“Investors Won’t Come Overnight”: Sri Lanka Plans Major BOI Overhaul to Attract Foreign Investment

COLOMBO (News 1st); Sri Lanka is preparing to reshape its foreign investment promotion strategy, with a focus on institutional reforms, stronger investment laws and targeted engagement with international investors rather than relying on promotional campaigns alone.

Duminda Hulangamuwa, Senior Economic Advisor to the President of Sri Lanka, said attracting foreign direct investment (FDI) requires more than simply approaching international investors and inviting them to establish businesses in the country.

He stressed that Sri Lanka must first put the necessary institutional framework, legal structure and infrastructure in place to create an environment in which investors can operate with confidence.

“You can't promote FDI by going and talking to investors and asking them to come and set up industries. It won't happen overnight. We have to do reforms in certain areas,” Hulangamuwa said.

One of the key changes being proposed is the establishment of a separate institution dedicated to investment promotion and research, following a proposal by the President to strengthen the country's overall investment promotion architecture.

According to Hulangamuwa, Sri Lanka must first establish its presence on the global investment map and build the groundwork necessary to attract sustained international interest.

He also identified the strengthening of the Board of Investment (BOI) as a major priority, particularly through amendments to its existing legal framework.

The intention is to transform the BOI into a genuine one-stop investment centre, with the legal authority to facilitate and grant the approvals required by investors without having to navigate multiple institutions and lengthy procedures.

Hulangamuwa revealed that the Government is already in the process of drafting amendments to strengthen the BOI's legal powers and enable it to function effectively as a one-stop shop.

The broader investment strategy is closely linked to Sri Lanka's efforts to increase exports and foreign exchange earnings.

He said the Government has identified tourism and the export of goods as key areas for generating foreign currency, while emphasising that attracting foreign investment must be closely connected to expanding the country's export capacity.

The focus, therefore, is not simply on attracting foreign companies, but on securing investments that can generate exports, create international market opportunities and strengthen Sri Lanka's position in global trade.

Hulangamuwa also highlighted the importance of negotiating Free Trade Agreements (FTAs) and securing greater market access for Sri Lankan products, noting that investment promotion cannot be separated from the country's broader trade strategy.

As part of a more targeted approach, the Government has identified approximately five countries for focused investment engagement.

Rather than depending heavily on large investment forums, the plan is to pursue direct, one-on-one meetings with investors in those markets.

Hulangamuwa said this approach would allow Sri Lanka to engage more directly with potential investors while presenting specific opportunities and building stronger investment relationships.

He expressed confidence that once the necessary framework is established, including institutional capacity, infrastructure and global branding, more investors would gradually begin looking at Sri Lanka as an investment destination.