The government’s success in stabilizing the economy has been overshadowed by the challenge of reforms essential for attracting quality investments. Such investments are vital for inclusive growth and competitive productivity in Sri Lanka’s economy, European Union Ambassador to Sri Lanka and Maldives Carmen Mareno opined at a recently concluded forum held in Colombo.
“The government has made remarkable progress in stabilizing the economy under the IMF program and delivering growth of 5% in the last two years, but faces a difficult task ahead introducing reforms and many others are needed to attract quality investment and deliver inclusive and sustainable growth to Sri Lanka. Investment is what allows countries to build infrastructure, especially connectivity infrastructure to raise productivity and to become more competitive in the world states,” she said.
Mareno said, supply chains are now integral to foreign policy, particularly in energy, food, and medicine. The digital and green transformations impact competitiveness and geopolitical conflicts, particularly in the Middle East, affecting economies. Foreign direct investment has dropped over 11%, intensifying competition for resources and therefore Sri Lanka must establish itself as an attractive investment destination by showcasing a clear vision for its future, partnering with the EU for investment opportunities.
She noted that the EU is the largest investor and recipient globally, with €9 trillion in foreign direct investment. It holds 40% of FDI in Central Asia and significant investments in India and Indonesia.
“ We are not only the largest investor but also the largest recipient of investment in the world. Our portfolio outside in the European Union is in 2024 was 9 trillion euros of foreign direct investment stocks. For you to have a reference, the official stock of China outbound is 3 trillion euros. Ours is 9 trillion. So the global footprint of European companies is very large and is growing in Asia. In Central Asia, for instance, the European Union is already the largest investor. We have 40% of the total FDI in Central Asia,” she opined.
Mareno said European companies are key partners in Asia’s energy transition and infrastructure, investing in nations with strong foundations. Sri Lanka exemplifies this with European investors in diverse export sectors, supported by a global gateway strategy.
“Our investment is demanding but is also transformative. It comes with transfer of technology, high standards, management capacity and skills, and you can see all this already in Sri Lanka,” she added.
Source: Daily News