07/07/2026
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The Board of Investment’s (BOI) newly appointed Director General Dr. Sulakshana Jayawardena yesterday outlined a broad reform agenda to improve Sri Lanka’s investment climate, identifying policy inconsistency, cumbersome approvals, land acquisition delays, and skills shortages as among the principal obstacles preventing the country from attracting higher levels of foreign direct investment (FDI).
Addressing the CA Sri Lanka 5th Annual Economic and Tax Symposium, Dr. Jayawardena said Sri Lanka attracted $ 1.063 billion in realised FDI last year, falling short of its $ 1.5 billion target. The target for this year remains $ 1.5 billion in realised investments and $ 2 billion in committed investments.
As at June, realised FDI stood at approximately $ 250 million, highlighting the scale of the challenge in meeting this year’s target.
Dr. Jayawardena distinguished between committed and realised investments, explaining that committed investments are recorded when agreements are signed with investors, while realised investments are recognised only after foreign currency is remitted into Sri Lanka through Inward Investment Accounts.
While acknowledging that global economic conditions continue to weigh on investment flows, he said Sri Lanka must also address longstanding domestic constraints.
“One of the key challenges to enhancing investor confidence is policy consistency and the institutional regulatory framework,” he said.
Dr. Jayawardena noted that, depending on the nature and location of a project, investors are often required to obtain approvals from more than 20 public institutions, with agencies operating under different procedures and without agreed timelines.
“If you are going to say no, that is acceptable if you tell it in a timely manner, rather than dragging and asking several things and putting the investment into trouble,” he said.
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