COLOMBO – Vijitha Herath, Minister of Foreign Affairs, Foreign Employment, and Tourism, addressed the “Evening with Diplomats” organized by the Ceylon Chamber of Commerce, engaging with diplomatic representatives and business leaders on Sri Lanka’s economic and trade priorities on Monday, March 11
In his speech, Minister Herath outlined the government’s strategy for economic stability, foreign investment, and trade expansion, emphasizing Sri Lanka’s commitment to strengthening international partnerships and fostering a business-friendly environment.
The full text of Minister Herath’s speech :
“ Chairman Hulangamuwa, you and your team has brought together this evening several pillars of industry, partners in business and a global network of representatives from no less than 35 countries based here in Colombo. Our collective representation this evening reinforces the belief that true progress is built on partnerships and collaboration. When government, the global community and businesses come together, we generate opportunities and create value which lead us to transcend borders and drive shared prosperity. I congratulate you, Mr. Chairman, on this initiative and warmly commend those who have joined this event which reflects a positive spirit.
The focus of our Government is on three main priorities, namely Poverty Reduction, Digitalization and the multifaceted programme of ‘Clean Sri Lanka’.
These pillars are opportunities for collaboration and partnership as well – both domestically and on the international front. Therefore, I invite the diplomatic Corps partners in this forward journey with the government and the private enterprise. We have seen already a large amount of goodwill towards Sri Lanka for this policy direction and we look forward to developing concrete initiatives for partnership.
The Government’s commitment to accelerating and sustaining Sri Lanka’s positive economic recovery is reflected in the stability that has been achieved with firm, difficult and yet necessary policy decisions. The support of the international community including the international financial institutions as well as our creditor countries have been crucial in this forward movement. As you know on February 28, the IMF Executive Board approved the third review under the 48th month Extended Fund Facility arrangement providing access to US dollars 334million. This is aimed at supporting Sri Lanka’s economic reform programme and sustaining economic policies. By this step, the IMF has recognised Sri Lanka’s strong program performance with all quantitative targets being successfully reached by end 2024. This is a strong indication of the stability and progress made in Sri Lanka’s macro economic environment.
Our objective of achieving Sustained economic growth at around 5% requires a multifaceted, multisectoral approach in policy formulation and implementation. President Anura Kumara Dissanayake has outlined these comprehensively during the presentation of the national budget to Parliament. Policy reform as well as sector focus are evident in several of the initiatives being undertaken by the government and in relation to business, these are well captured in the budget proposals for 2025.
Sectors such as Manufacturing, Maritime and logistics, IT, Tourism, among several others are key in this endeavour.
The Government will remain consistent in our approach to improve Sri Lanka’s ease of doing business factors. The President at the Economic Summit 2025 outlined how the Government intends to streamline the process of investment approvals by cutting down the period taken for approvals from 269 days to less than 82 days and the BOI reducing the time frame from 80 days to less than two weeks.
The National Budget highlighted our commitment towards securing investment by continuing forward with the Economic Transformation Act with amendments and introducing the Investment Protection Act – An overarching new legislation will be introduced to safeguard the rights of the investors and provide a conducive environment for foreign investment. This is in addition to the constitutional provisions on investment currently in place.
We are also keen to promote Public Private Partnerships and as mentioned in the National Budget 2025 a Public – Private Partnership Investment Management Act is to be introduced. The aim is to create a conducive legal framework for investment and to conduct such investments as partnerships, providing public and government support. Legislation of this nature is needed in order to promote the private sector involvement with Government being an enabler.
What then is Sri Lanka‘s value proposition?
Our strategic location in the Indian Ocean is a unique and unchangeable factor in the area of global trade and connectivity. With international shipping lanes just seven nautical miles away from Sri Lanka’s coast connecting the world, world class ports including two deep water ports, Sri Lanka provide provides an unpaid location. So in Shipping and logistics, Aviation, financial sector, or manufacturing the unique location can be a particular advantage for those partnering with a Sri Lanka joint venture partner or setting up operations in Sri Lanka.
Sri Lanka has particular advantage with our educated, diverse and trainable population labour force is an important human capital asset we posses. This is continuing to both expand and upskill. A good example of this is in the IT sector.
The Ceylon Chamber of Commerce established in March 1839 and indeed business community amidst this audience reflects represents Sri Lanka’s vibrant corporate culture – a culture which spans over one and a half centuries. This culture of doing business is a unique environment for international partners to collaborate with Sri Lankan private sector.
You already experience the warm and welcoming spirit of Sri Lankans thus making Sri Lanka an endearing place to live, work and do business.
Our focus on sustainability is strong. The emphasis government and business places on environmental, social and governance principles are constantly expanding and deepening. Sri Lanka continues to emerge as a strong Location for ethical and responsible business operations. A compelling factor indeed for environmental conscious investors and those aspiring to reach these global benchmarks.
Having outlined a few factors which capture Sri Lanka’s features, I submit to you that Sri Lanka provides an excellent opportunity for collaboration with foreign partners leading most certainly to enhance profitability and sharpen their competitiveness in the global business.
I would like to Reaffirm Sri Lanka’s commitment to strengthening diplomatic and trade ties. We are keen to improve Sri Lanka’s market access by looking at strategic Free Trade Agreements to diversify Sri Lanka’s export basket and destinations. I would encourage collaboration between foreign embassies and Sri Lankan businesses to boost trade. Today’s event can be the start of this joint collaboration and I request the Ceylon Chamber to take the lead in this process given its wide network.
In my portfolio as the Minister of Tourism, I would like to outline that our Government is keen to promote Sri Lanka as a sustainable tourism destination. There is work to be done in creating a unique brand for Sri Lanka tourism and marketing in key destinations and we look forward to your support in this endeavour. The High Commissions and Embassies in Colombo play a key role in promoting this brand. You can be credible voices for Sri Lanka and be partners for joint initiatives. We are looking at further visa facilitation measures and tourism infrastructure improvements.
I encourage a focused dialogue between the private sector, foreign embassies, and the government in realising our trade, investment and tourism targets. I invite foreign investors and businesses from your countries to explore opportunities in Sri Lanka and reaffirm the government’s commitment to facilitating trade, investment, and diplomatic collaboration.
I extend my best wishes for the networking ahead and hope that the connections made tonight will flourish in the years to come.
Let me conclude by reflecting on the words of Mr.Henry Ford – Founder of the Ford Motor company who is believed to have said “Coming together is a beginning; staying together is progress; and, working together is success”
