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Sri Lanka’s Foreign Investment Target: Ambitions Outpace Reality

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As Sri Lanka navigates its post-crisis recovery, foreign direct investment (FDI) has emerged as a cornerstone of its economic revival strategy. The government, alongside institutions like the Board of Investment (BOI), has set ambitious targets to attract substantial foreign capital. However, a closer examination of the actual figures as of August 2025 reveals discrepancies and raises questions about the feasibility of meeting the stipulated goals.

FDI Targets vs. Reality

The International Monetary Fund (IMF) has recommended a minimum FDI target of $1 billion for Sri Lanka in 2025. In response, the BOI has set an even more ambitious goal of $1.8 billion. However, as of late July 2025, the BOI had approved 63 projects with a combined value of $776 million, including $500 million in FDI and $276 million in local investments. This indicates that while the number of approved projects is on track, the actual FDI inflow is significantly below the target.

Major Investment Projects

Several high-profile projects have been approved, signaling potential growth in FDI:

CEAT OHT Lanka: A $171 million investment in the manufacturing and export sector, highlighting confidence in Sri Lanka’s industrial capabilities.

Sinopec Refinery: A $3.7 billion oil refinery project in Hambantota, aimed at reducing Sri Lanka’s reliance on imported oil.

These projects underscore the potential for significant FDI inflows. However, the overall figures suggest that such large-scale investments are not yet widespread.

 Discrepancies in Reporting

Government officials, including BOI Chairman Arjuna Herath, have made optimistic statements about surpassing the $1 billion FDI target. However, the actual figures paint a more cautious picture. The BOI’s approval of 63 projects worth $776 million by July 2025 falls short of the ambitious targets set earlier in the year. This gap between projections and reality raises concerns about the accuracy of public statements and the effectiveness of current investment strategies.

While Sri Lanka has made strides in attracting foreign investment, the actual figures as of August 2025 suggest that the country is yet to meet its ambitious FDI targets. The approved projects, though promising, are not sufficient to reach the $1 billion or $1.8 billion goals set by the IMF and the BOI. This disparity calls for a reassessment of strategies to enhance investor confidence and attract the necessary capital to drive economic recovery.

Sri Lanka Secures Backing of 43 Countries at UNHRC

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COLOMBO – Sri Lanka has received the support of 43 member states at the United Nations Human Rights Council (UNHRC) in Geneva, which the Government described as a sign of positive progress in human rights protection. The backing came during the interactive dialogue at the Council’s 60th session, the Ministry of Foreign Affairs, Foreign Employment and Tourism announced.

Among the countries that expressed support were Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Ethiopia, Ivory Coast, Philippines, Japan, Laos, Thailand, Vanuatu, Democratic People’s Republic of Korea, Eritrea, Iran, Nepal, India, Zimbabwe, Vietnam, China, Azerbaijan, Indonesia, Turkey, Belarus, Egypt, Venezuela, Maldives, Cuba, South Sudan, Sudan, the Russian Federation and Burundi.

According to the Ministry, these nations welcomed Sri Lanka’s continued engagement with the Human Rights Council and the recent visit by the High Commissioner as evidence of improved cooperation. They also acknowledged significant legislative reforms and tangible progress underway, while urging the international community to support Sri Lanka’s nationally owned processes.

Several countries raised concerns over diverting resources to an external mechanism for Sri Lanka, warning that such parallel processes risk becoming polarising. They argued that imposing country-specific measures undermines the Human Rights Council’s founding principles of universality, impartiality and non-selectivity.

In their statements, the supporting nations further expressed concern about double standards, politicisation and the instrumentalisation of human rights to interfere in domestic affairs. They called for constructive dialogue and genuine cooperation within the Council to ensure effective protection and promotion of human rights.

Over 212,000 Sri Lankans Depart for Foreign Employment in First Eight Months of 2025

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COLOMBO – The Sri Lanka Bureau of Foreign Employment (SLBFE) announced that 212,302 Sri Lankans have secured overseas employment between January and August 2025.

Of this total, 130,252 were men, significantly outnumbering the 82,050 women who departed during the same period.

Kuwait remained the leading destination, employing 53,159 Sri Lankans, followed by the United Arab Emirates (41,180) and Qatar (30,263). A notable increase was also observed in East Asia, with 8,015 workers travelling to Japan and 4,324 to South Korea.

Migrant workers sent home USD 5.11 billion in remittances during the first eight months of the year, marking a 19.3% rise from USD 4.28 billion recorded in the corresponding period of 2024. In August alone, remittances stood at USD 680.8 million.

The SLBFE expressed optimism that total foreign remittances will reach USD 7 billion by the end of 2025, reinforcing the sector’s critical role in stabilising Sri Lanka’s economy.

Foreign Ministry Urges Sri Lankans in Nepal to Stay Indoors Amid Unrest

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The Ministry of Foreign Affairs has advised Sri Lankans in Nepal to remain indoors and take precautions in light of the violent protests sweeping the country.

Foreign Ministry Spokesman Thushara Rodrigo said that embassy officials in Kathmandu are on call 24 hours a day and can be reached via +977 9851048653.

He urged Sri Lankans to keep an emergency supply of water, dry food, and essential medicines with them at all times.

According to the ministry, there are currently 99 Sri Lankans in Nepal, including 22 university students, embassy staff, and others. Rodrigo confirmed that none of them have been affected so far, and that students have been contacted through WhatsApp groups for safety updates.

The ministry said it continues to closely monitor developments and remains in touch with the Sri Lankan mission and community leaders in Nepal.

What we know about Nepal anti-corruption protests as PM resigns

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At least 22 people have been killed and nearly 200 injured as anti-corruption protests escalated across Nepal, forcing Prime Minister KP Sharma Oli to resign on Tuesday.

The unrest, sparked by a now-revoked ban on 26 social media platforms, has grown into the country’s largest youth-led movement in decades. Protesters, many identifying as Gen Z, accuse political leaders of corruption and inequality, rallying under the slogans #NepoBaby and #NepoKids to highlight the lavish lifestyles of politicians’ families.

On Monday, thousands clashed with police outside parliament, where officers used tear gas, water cannons, and live fire. Demonstrators later set ablaze government buildings, the parliament, and homes of senior politicians, including former PM Sher Bahadur Deuba.

The army has pledged to restore order while inviting protesters to dialogue. With Oli’s departure, Nepal now faces political uncertainty over who will form the next government amid its worst unrest in decades.

CEB Proposes 6.8% Power Tariff Hike; PUCSL Calls for Public Feedback

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The Ceylon Electricity Board (CEB) has proposed a 6.8% increase in electricity tariffs for the final quarter of 2025, the Public Utilities Commission of Sri Lanka (PUCSL) announced.

In response, the PUCSL has decided to seek public opinion on the proposed revision. Written comments and suggestions can be submitted to the Commission via email, WhatsApp, Facebook, or post before October 7, 2025.

To gather verbal submissions, nine public consultations covering all provinces will be held, beginning on September 18, 2025.

Submissions can be sent to:

  • Email[email protected]
  • WhatsApp: 076 427 1030
  • Facebookwww.facebook.com/pucsl
  • Post:
    Public Consultation on the Third Electricity Tariff Revision – 2025
    Public Utilities Commission of Sri Lanka
    6th Floor, Bank of Ceylon Trade Tower,
    Colombo 3.

The PUCSL stated that this is the third electricity tariff revision for 2025.

WEATHER FORECAST FOR 10 SEPTEMBER 2025

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A few showers may occur in Western, Sabaragamuwa and Northern provinces and in Galle, Matara, Kandy, and Nuwara-Eliya districts.

Showers or thundershowers may occur at a few places in Uva, eastern and Northcentral provinces after 2.00 p.m.

Mainly fair weather will prevail elsewhere of the island.

The sun is going to be directly over the latitudes of Sri Lanka during 28th of August to 07th of September due to its apparent southward relative motion. The nearest places of Sri Lanka over which the sun is overhead today (10) are Ahungalla, Elpitiya, Amugoda, Thawalama, Deniyaya, Urubokka, Embilipitiya, Suriyawewa, Beralihela and Galkaduwa about 12.08 noon.

Sri Lanka’s Solar Push: Can Rividanavi Project Deliver Energy Goals?

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By: Staff Writer

September 09, Colombo (LNW): Sri Lanka took a decisive step toward its renewable energy ambitions on Saturday (6), when President Anura Kumara Dissanayake inaugurated the construction of the country’s largest solar project the $140 million Rividanavi Solar Power Park in Kotiyagala, Monaragala. Spanning 500 acres, the project aims to generate 100 MW of electricity, enough to add 219 GWh annually to the national grid and save Rs. 21 billion in foreign exchange otherwise spent on diesel imports.

On paper, the project marks a landmark in Sri Lanka’s long-delayed renewable transition. By 2030, the Government has pledged to source 70% of the nation’s power needs from renewable energy. Yet the reality of implementation has often been more complicated. Projects frequently stall amid red tape, investor uncertainty, and grid constraints, raising the question: will Rividanavi be different?

A Bold Vision, Tangible Gains

The project, spearheaded by private firm Rivi Danavi (a joint venture between Lakdhanavi Ltd. and WindForce PLC), will include a 12 MWh battery storage facility—the first of its kind in the country. This is intended to stabilize the notoriously fragile grid, which relies heavily on costly thermal plants during peak hours. Moreover, the initiative introduces a new model where the investor, not the Ceylon Electricity Board (CEB), funds and builds the 27 km transmission line and 132 kV substation to connect power to the grid.

Environmental benefits are equally significant. The solar park is projected to cut carbon dioxide emissions by 150,000 metric tons annually, aligning with international climate commitments. On a local scale, the project promises jobs, scholarships, water supply schemes, and vocational training, potentially transforming Monaragala into a renewable hub.

The Bottlenecks in Solar Expansion

Despite the optimism, experts warn that Sri Lanka’s renewable energy roadmap has often been derailed by bureaucratic gridlocks. A single project requires approval from up to 12 different institutions. While the Presidential Secretariat has accelerated approvals for Rividanavi, questions remain about whether such streamlined processes will become standard or remain exceptions.

The CEB, long criticized for favouring coal and thermal expansion over renewables, is another hurdle. Grid absorption capacity remains limited, meaning large-scale projects risk delays once completed. Industry insiders point out that without clear reforms in procurement, transmission planning, and tariff structures, even flagship projects may struggle to achieve their full potential.

Investor Confidence at Stake

Energy Minister Kumara Jayakody has billed the project as a turning point, highlighting the administration’s commitment to backing private investors. However, investors remain wary due to past experiences of policy reversals and payment delays. The fact that Rividanavi has advanced this far signals progress, but consistency will be critical to build long-term confidence.

A Test Case for 2030 Targets

Sri Lanka’s annual electricity demand hovers around 15,000–16,000 GWh. Rividanavi will contribute only about 1.4% of this symbolically important, but insufficient on its own. Meeting the 70% renewable target by 2030 will require dozens of similar projects, timely approvals, and massive investment in transmission infrastructure.

For now, Rividanavi stands as both a milestone and a test. If delivered on schedule by early 2027, it could mark the beginning of a genuine shift toward clean energy. But if delays, institutional rivalries, or grid challenges stall progress, it risks becoming another reminder of Sri Lanka’s unrealized renewable promises.

UN Report Puts Sri Lanka’s Accountability Pledges to the Test

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By: Staff Writer

September 09, Colombo (LNW): The United Nations High Commissioner for Human Rights, Volker Türk, yesterday (8) presented a critical report on Sri Lanka to the 60th session of the UN Human Rights Council (UNHRC) in Geneva, renewing international calls for accountability and justice over alleged human rights violations and breaches of international humanitarian law.

The report urged Colombo to establish a dedicated judicial mechanism, with an independent special counsel, to handle cases of alleged wartime abuses and serious rights violations. While underscoring that the primary responsibility lies with the Sri Lankan government, the High Commissioner stressed that international engagement remains “essential” to ensure long-term reconciliation and sustainable peace.

Fresh International Pressure

The report comes at a sensitive time for the new administration in Colombo, which has promised to restore rule of law and strengthen democratic institutions. Türk emphasized that the UNHRC and individual member states should continue supporting the Office of the High Commissioner for Human Rights (OHCHR) in undertaking accountability-related work, as mandated by earlier council resolutions on Sri Lanka.

In practice, this means that the UN system will continue to monitor the island closely, keeping alive the possibility of international evidence-gathering and sanctions if Colombo fails to demonstrate progress. For the government, already balancing domestic political pressures and international obligations, the recommendations pose a test of both credibility and political will.

Key Recommendations

Beyond accountability mechanisms, the report outlined broader reforms. These include:

The release of military-occupied land in the north and east.

Repeal of the Prevention of Terrorism Act (PTA) and release of long-term PTA detainees.

Comprehensive security sector reform.

Constitutional, legal, and institutional reforms to align with international human rights standards.

Such measures, while welcomed by human rights advocates, could prove politically contentious at home, particularly with sections of the military and political establishment resistant to external pressure.

The Government’s Dilemma

Analysts note that the new government faces a dilemma: comply with UNHRC recommendations and risk nationalist backlash, or resist reforms and face deepening isolation abroad. With international financial support still critical to Sri Lanka’s fragile economic recovery, the cost of ignoring UN findings may prove high.

At the same time, implementing reforms will require careful political navigation. Moves such as releasing detainees or reducing the military’s footprint in former conflict zones could provoke criticism from opponents who portray such steps as concessions to external actors.

A Chance for Reset?

The High Commissioner’s report follows his recent visit to Sri Lanka, during which he met government officials, civil society groups, political parties, and religious leaders. The visit was seen as an opportunity to re-engage constructively.

If Colombo can demonstrate tangible progress through legal reforms, transparent investigations, and dialogue with affected communities—it could reset relations with the UNHRC and improve its global standing.

However, observers caution that past governments have often promised reforms without delivery. The coming months will reveal whether the current administration intends to break that cycle, or whether Sri Lanka risks once again being caught between international scrutiny and domestic resistance.

Government Moves Ahead with Kerawalapitiya Customs Inspection Center

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By: Staff Writer

September 09, Colombo (LNW): Sri Lanka is moving to establish a new Customs inspection center at Kerawalapitiya under a hybrid public-private partnership (PPP) model, with the government now seeking private investors to implement the project.

According to S Minister Nalinda Jayatissa, land belonging to the Sri Lanka Land Development Corporation has already been transferred to Sri Lanka Customs for this purpose.

A committee appointed to study the initiative has submitted recommendations on the most suitable business model, following which Cabinet approval was granted to call for expressions of interest and requests for proposals from potential investors.

The proposed Kerawalapitiya Customs Verification Center is intended to serve as a centralized hub for container inspection outside the congested Colombo Port. Officials expect the project to modernize cargo handling and clearance, reduce delays, and improve transparency long-standing concerns among importers and exporters who have faced high costs due to inefficiencies in the current system.

Potential Gains in Trade Facilitation

If successfully implemented, the center could significantly enhance Sri Lanka’s trade competitiveness by reducing clearance times and curbing rent-seeking practices often associated with manual procedures.

Advanced scanning and automated processing, brought in through private-sector investment, may also reduce opportunities for corruption, while allowing the Customs Department to focus more on regulatory oversight.

Challenges under Current Climate

However, the project comes at a delicate moment. Customs officers have launched a “work-to-rule” campaign in response to the government’s anti-corruption drive, slowing operations at a time when trade facilitation is crucial to economic recovery.

Critics argue that moving ahead with a PPP initiative while staff unrest remains unresolved could deepen institutional tensions, risking delays in implementation and possible resistance from unions that view private involvement as an encroachment on their functions.

Public-Private Balance

While the PPP model offers fiscal advantages by shifting initial capital costs to the private sector, it raises questions over long-term revenue sharing and oversight. Without strong regulatory safeguards, there is the risk of private operators gaining undue influence over sensitive inspection processes. Analysts note that any perception of weakened state control over Customs could undermine confidence in the integrity of trade monitoring.

The Broader Reform Agenda

The Kerawalapitiya project reflects the government’s broader attempt to modernize institutions while addressing systemic corruption. Success will depend not only on selecting the right private partner but also on ensuring transparency in procurement, clear delineation of responsibilities, and robust monitoring mechanisms.

Industry stakeholders stress that genuine consultation with Customs officers and trade unions will be essential to avoid further friction and ensure smooth adoption of new practices.

As Sri Lanka works to streamline its trade regime and attract foreign investment, the Kerawalapitiya inspection center presents both an opportunity and a test.

If executed carefully, it could become a model of reform-oriented infrastructure development. If mishandled, it risks becoming another flashpoint in the ongoing struggle between the government and entrenched institutional interests.