By: Staff Writer
October 14, Colombo (LNW): Sri Lanka’s decision to host the Economic and Investment Summit 2025 in December could become a turning point in rebuilding investor confidence and restoring economic momentum after years of crisis.
Jointly organized by the Ministry of Foreign Affairs, Foreign Employment and Tourism and the Ceylon Chamber of Commerce (CCC), the event aims to position the country as a strategic investment hub and reconnect it with global capital markets.
At a hybrid briefing held on 10 October, Deputy Minister Arun Hemachandra called for renewed international business partnerships ahead of the summit, scheduled for 2–3 December 2025 in Colombo.
Addressing diplomatic missions and trade partners, he noted that the country’s “remarkable post-crisis recovery”supported by improved foreign reserves, macroeconomic stability, and reform momentum has created an environment conducive to foreign investment.
Ceylon Chamber Chairman Krishan Balendra described the event as a high-impact platform to showcase sectoral opportunities in tourism, energy, logistics, and technology.
He urged embassies to mobilize investor delegations and promote Sri Lanka as “Asia’s next emerging opportunity.” The Chamber’s Secretary General Buwanekabahu Perera added that the summit would serve as a confidence-building initiative linking policy reforms with tangible investor engagement.
The summit comes as Sri Lanka’s economy shows early signs of stabilization amid ongoing structural challenges.
According to the Central Bank of Sri Lanka (CBSL), inflation turned positive at 1.5% in September 2025, after months of deflation, while the economy is projected to grow by around 4.5% this year. Growth is being driven by a rebound in tourism, higher remittance inflows, and gradual recovery in exports.
Official worker remittances rose 20% year-on-year during the first nine months of 2025 to reach US$5.8 billion, while gross official reserves increased to over US$5 billion, providing a modest cushion for external payments. The rupee has remained relatively stable, supported by improved confidence following progress in foreign debt restructuring and fiscal discipline efforts.
Yet significant risks remain. Fiscal deficits are still estimated above 5% of GDP, while total public debt—though restructured remains over 100% of GDP. Private investment remains subdued, reflecting lingering policy uncertainty, slow implementation of capital projects, and limited investor assurance.
The government’s reform program has gained external validation following the IMF’s staff-level agreement in October 2025, unlocking US$347 million under the Extended Fund Facility (EFF). The IMF commended the authorities for progress in revenue reforms, energy pricing, and governance, but emphasized that sustained commitment is essential to maintain macroeconomic stability and restore investor trust.
This continued engagement with the IMF, together with gradual improvements in fiscal management, provides the backdrop for the December summit. It signals to potential investors that Sri Lanka is serious about policy continuity and transparency—key preconditions for attracting long-term capital.
For the Economic and Investment Summit to have real impact, it must move beyond symbolic dialogue and deliver actionable investment outcomes. Investors will look for clear project pipelines, transparent regulatory frameworks, and credible legal protections. The Ministry and CCC are coordinating with Sri Lankan missions abroad to ensure strong international participation and targeted business matchmaking.
If effectively executed, the summit could convert macroeconomic stabilization into tangible growth, demonstrating that Sri Lanka is not merely recovering but repositioning itself as a credible, reform-driven economy in South Asia.
The coming months will determine whether the December summit becomes another policy showcase or a genuine catalyst for investment-led recovery and sustainable growth.
