By:Staff Writer
August 19, Colombo (LNW): Sri Lanka is intensifying its push to attract foreign investment as part of its economic recovery, earning international recognition for its progress in 2025. The Institute of International Finance (IIF), in its latest Investor Relations and Debt Transparency Report, ranked Sri Lanka fifth globally for the largest improvement in investor relations among 54 developing and emerging economies.
According to the IIF, Sri Lanka’s investor relations score surged by 9.1 points over the past year to 37.33 on a 50-point scale. This marks a significant leap from 25.2 in 2023 and 28.21 in 2024, reflecting notable progress in improving communication with global investors.
The government views investor confidence as a cornerstone of economic revival, particularly as the country continues to refinance debt and seeks to re-enter international capital markets. A senior finance ministry official told Sunday Times Business that mobilizing both portfolio inflows and long-term investments into infrastructure, tourism, renewable energy, and manufacturing remains a top priority.
A key driver behind this improvement has been the establishment in 2025 of a dedicated Investor Relations Unit (IRU) under the newly created Public Debt Management Office (PDMO) in the Ministry of Finance, Planning and Economic Development. The IRU, launched in collaboration with the IIF, provides global investors with direct access to transparent, timely, and reliable information.
Investor relations, officials explained, involve ongoing engagement between governments and the investment community, including global funds, banks, bond investors, and credit rating agencies. For Sri Lanka, this means ensuring regular communication on economic performance, fiscal policy, and debt management, while also enabling direct interaction between policymakers and investors.
The IRU’s role is to facilitate high-level dialogue, ensure clarity in debt and fiscal disclosures, and respond promptly to market queries. These measures, the IIF noted, have boosted Sri Lanka’s reputation, demonstrating its commitment to openness and credibility in dealing with the global financial community.
By strengthening investor relations, Sri Lanka is sending a clear signal to international markets that it is committed to long-term structural reforms. The government is currently negotiating funding for major infrastructure and energy projects while seeking private sector participation through public-private partnerships (PPPs).
Officials emphasized that the IIF’s recognition is not just a statistical achievement but an endorsement of Sri Lanka’s new investment narrative: transparent, reform-driven, and business-ready. The reforms, they added, will continue to expand in scope, enabling stronger ties with global investors.
If sustained, these efforts could accelerate Sri Lanka’s path back to international capital markets, providing crucial financing for the next phase of its economic recovery.
