Budget 2026: Sri Lanka Ramps Up Reforms to Attract Global FDI 📈

• The 2026 Budget, presented by President/Finance Minister A.K. Disanayake, positioned Sri Lanka as an honest, "friendly country for investors," viewing them as an asset. • Core Goal: Significantly increase Foreign Direct Investment (FDI) through a transparent, rules-based mechanism. The medium-term economic growth vision is 7% (up from current 4-5%). • New Incentives/Policies: • Introduced a Residence visa system for foreign investors meeting minimum thresholds in priority sectors/eligible projects. • Amendments proposed to the Strategic Development Projects Act and Colombo Port City Commission Act to streamline FDI and enhance incentive transparency/consistency. • Regulatory Framework Strengthening: The government is replacing cronyism with credibility and predictability, and is fast-tracking key legislation: • Investment Protection Act (to be passed in early 2026). • Transparent legal framework for the Public-Private Partnership (PPP) Act (for approval in early 2026). • Investment Opportunities are highlighted across various sectors, including exports, digital & IT infrastructure, tourism, port & aviation, blue economy, energy, and agriculture.