By: Staff Writer
July 14, Colombo (LNW): Sri Lanka has made remarkable strides in strengthening investor confidence and transparency in 2025, with notable progress in both investor relations practices and foreign direct investment (FDI) inflows. According to the Institute of International Finance (IIF), Sri Lanka is now among the top five countries showing the most significant improvements in investor relations globally.
In its July 9, 2025 Investor Relations and Debt Transparency Report, the IIF ranked Sri Lanka 5th out of 54 emerging and developing economies for score improvements. The country’s investor relations score surged by +9.1 points, reaching 37.33 out of 50, up from 28.21 in 2024 and 25.2 in 2023. This improvement reflects the government’s ongoing efforts to enhance fiscal transparency and communication with global investors.
A key development was the establishment of a dedicated Investor Relations Unit (IRU) within the newly formed Public Debt Management Office (PDMO) under the Ministry of Finance, Planning, and Economic Development. This move marked Sri Lanka’s first official engagement with the IIF and enabled the country to respond more effectively to international investor surveys. The IIF praised Sri Lanka’s initiatives, including improved accessibility of senior policymakers to investors and increased transparency in debt data.
The enhanced investor relations framework is expected to improve perceptions of Sri Lanka’s economic policy direction, restore trust, lower sovereign borrowing costs, and eventually support better credit ratings.
Complementing these institutional reforms is a noticeable uptick in Sri Lanka’s actual FDI performance in 2025. According to the Board of Investment (BOI), Sri Lanka has attracted over USD 750 million in FDI during the first half of 2025, marking a 28% increase compared to the same period last year. The BOI attributes this growth to renewed interest in logistics, renewable energy, IT services, and manufacturing zones.
Additionally, the BOI reports that over 40 new foreign investment projects have been approved so far this year, creating thousands of job opportunities and diversifying the country’s export base. Major investors have hailed the government’s efforts in improving regulatory transparency, fast-tracking approvals, and strengthening investor aftercare services.
These parallel developments in investor outreach and actual foreign capital inflows reflect a turning point in Sri Lanka’s economic recovery. With continued fiscal discipline, policy consistency, and improved global engagement, Sri Lanka is positioning itself as a more attractive destination for global investors in the region.
