📈 Hard Reforms Crucial for Sri Lanka’s FDI Goals: BOI Chairman

Sri Lanka must pivot from fiscal concessions to structural reforms to achieve its Foreign Direct Investment (FDI) target of US$ 2.0–2.3 Bn. BOI Chairman Arjuna Herath emphasized that the country lacks the fiscal space to compete with regional incentive-heavy regimes. • Investment Landscape & Targets 2025 Performance: Surpassed US$ 1.0 Bn in FDI, signaling recovery. Annual Requirement: US$ 7.0–10.0 Bn needed for sustainable development, including US$ 3.0–5.0 Bn for infrastructure. Current Pipeline: US$ 1.0 Bn in mineral sands proposals awaiting policy clarity. • Key Economic Barriers High Costs: Regional uncompetitiveness due to high energy and construction costs. Energy Reform: Strategy to lower electricity tariffs from 13-14 cents to 7-8 cents via renewable energy projects (secured below 4 cents). • Structural & Policy Priorities Legal Certainty: Introduction of an Investment Protection Act and reviews of the Economic Transformation Act to prevent policy reversals. New Sectors: Proactive focus on ICT/BPM (data centers), green hydrogen, green ammonia, and tech startups. Efficiency: Proposal for a dedicated commission with legislative authority to expedite investor approvals.