President highlights solid actions to restore stability, woos foreign investors at FT co-partnered webinar

• CBSL Governor stresses time right for foreign investors to tap opportunities in real economy slated to grow from 2H of this year
• Norway’s former Minister Erik Solheim says resilience of people and leadership of President Wickremesinghe have been critical for Sri Lanka’s revival post crises 

President Ranil Wickremesinghe

CBSL Governor Dr. Nandalal Weerasinghe

Norway’s Former Minister  Erik Solheim

President Ranil Wickreme-singhe on Saturday invited foreign investors to favourably consider Sri Lanka based on what the country has achieved to restore stability via resolute actions in a year from its worst crises.

Speaking at the Daily FT-ICC Sri Lanka-SLID along with multiple partner’s organised-webinar titled “Is Sri Lanka ready for investment?” Wickremesinghe briefly touched on key initiatives such as $ 3 billion Extended Fund Facility agreement with the International Monetary Fund (IMF), debt restructuring strategy, boosting of reserves, declining inflation and interest rates along with stable currency as proof of the Government’s efforts and achievements after being bankrupt a year ago. He said on-going efforts by the Government will result in a much freer economy and further liberalisation. 

“Our final aim is a highly competitive economy, a green economy and a digital economy,” the President said adding that initial steps have been taken in regard to all these three objectives including a decision to divest a large number of state owned enterprises.

Wickremesinghe referred to efforts to pursue bilateral and regional trade agreements as well as to join the Regional Comprehensive Economic Partnership (RCEP) to garner access to the South East and the eastern Asian markets.

“We are also conducting discussions with India regarding further trade integration. Sri Lanka already has a GSP plus arrangement with the EU. So this is just a start. We are focusing on a number of new initiatives to make Sri Lanka a regional logistics centre, increase tourism and other special opportunities available in Sri Lanka,” the President said.

“These are but some of the initiatives that we have started and I would like all of you to consider what Sri Lanka has done and examine the opportunities and the potentials you have in investing in Sri Lanka,” President Wickremesinghe told participants of the webinar.

Central Bank Governor Dr. Nandalal Weerasinghe too said time is opportune for foreign investors to consider Sri Lanka following the restoration of stability and continuous efforts to improve macroeconomic fundamentals.

“If the question ‘Is Sri Lanka ready for investment?’ was asked a year ago, then certainly not. However, a year later we have restored macro-economic stability. Inflation which was at 70% and threatening to be hyper, has been progressively reduced and will be single digit by end July. Interest rates have been brought down, reserves have been increased and the currency has been stable,” CBSL Chief explained. He also highlighted some of the goals of the IMF program and the efforts to make Sri Lanka’s debt sustainable.

Dr. Weerasinghe pointed to inflow of over $ 500 million into the short-term Government Securities as proof of initial confidence among foreign investors.

However he said the true potential was in the real economy which will grow from the second half of 2023 and next year having contracted by 8.7% in 2022.

The CBSL Chief identified airports, ports, logistics, tourism, renewable energy, construction, digital economy, technology among high potential sectors for foreign investors.

He revealed that restrictions on imports will be eased further to encourage value added export sector, as well as temporary curbs on capital and current account transactions.

He emphasised that Sri Lanka is focussed on improving good governance and reducing vulnerabilities to corruption with a specific program with the IMF for which the Government is strongly committed.

Reference to on-going reforms was also made by the CBSL Governor who emphasised the need for labour reforms including allowing free talent mobility including from abroad.

“So far already we have shown our credibility and reputation by recovering in a very short period. None of the other countries facing this kind of crisis have achieved this kind of success in a very short period,” he said, adding that Sri Lanka will continue to demonstrate positive transformation into the future as well.

Norway’s former Minister Erik Solheim in his remarks recalled that when the extraordinary crisis hit Sri Lanka last year, many thought it would break the back of Sri Lanka. “It didn›t happen because of the fantastic resilience of the people of Sri Lanka that have been able to come out of these crises and to look ahead,” Solheim said, adding that the leadership by President Wickremesinghe and others have been critical to create the present situation.

“Time has now come to look into the enormous opportunities for this fantastic island,” he said, adding that renewable energy and tourism were high potential sectors.  

The panellists at the webinar were Power and Energy Minister Kanchana Wijesekera, Sri Lanka High Commissioner-designate to United Kingdom Rohitha Bogollagama, Deputy Japanese Ambassador to Sri Lanka Kotaro Katsur, Deputy Australian High Commissioner to Sri Lanka Lalita Kapur, Sri Lankan Ambassador to the United Arab Emirates Udaya Indrarathne, Pemandu Associates Executive Vice President and Partner Ridzwan Hamzah, CHEC Port City Colombo Ltd., Managing Director Yang Lu, Ideal Group Deputy Chairman Aravinda De Silva and Employers Federation of Ceylon Chief Executive Officer Vajira Ellepola.

Colombo University MBA Association, Employers Federation of Ceylon, CIMA, ACCA and CA were the other partners of the webinar.