🇸🇪 Sri Lanka-Sweden Investment Outlook Brightens on Policy Stability

Key Highlights: Outgoing Swedish Ambassador Jan Thesleff notes recovering international investor confidence in Sri Lanka, driven by improved policy stability, a highly skilled workforce, and economic resilience. Swedish Footprint: Around 80 Swedish companies currently operate in Sri Lanka. Notably, over US$ 1 Bn has been committed by Swedish private equity firms into Sri Lankan technology companies, signaling high confidence in local corporate governance and talent. Sector Breakdowns: • ICT/BPM: Represents about 50% of Swedish firms operating in Sri Lanka, leveraging the country's growing digital economy. • Apparel & textiles: Continues to attract Swedish manufacturing relocations from other parts of Asia due to skilled labor. • Emerging Sectors: Strong potential identified in renewable energy (supported by Swedfund-CEB grid cooperation), healthcare, life sciences, food processing, and packaging. Future Outlook: A major Swedish business delegation led by Business Sweden is scheduled to visit Sri Lanka in January 2027 to participate in the Sri Lanka Expo, marking their first organized presence at the flagship exhibition.