Delivering on FDI commitments key to Sri Lanka's economic recovery 📈

• Overall FDI Challenge Sri Lanka faces critical delays in converting signed foreign direct investment (FDI) commitments into active operations, risking investor confidence as its IMF recovery program matures. • Stalled & Exited Major Projects • Port & Logistics Hub: CMPort exited the planned US$ 392 Bn South Asia Commercial and Logistics Hub project at the Colombo Port on October 15 following a mutual settlement, despite retaining its existing container terminal and Hambantota Port operations. • Petroleum & Refining: Sinopec's proposed US$ 3.7 Bn refinery in Hambantota—Sri Lanka’s largest FDI commitment—remains at a standstill due to unresolved terms around domestic market access (capped at 20%), land allocation, and water supply. • Strategic Implications & Key Reforms • Policy gaps and post-agreement disputes endanger key expansion sectors including maritime logistics, energy, and export manufacturing. • Sustainable growth requires transition from promotional roadshows to strong investor aftercare, single-point project accountability, and early policy clarity.