Sri Lanka stands at a crossroads, facing urgent economic challenges but also promising opportunities. During a special edition of Face The Nation titled "Investment and Beyond," Thilan Wijesinghe, the former chairman of the Board of Investment (BOI), and Deepak Bagla shared their expert insights on investment strategies for Sri Lanka. They addressed the nation's obstacles and outlined pathways forward, presenting a compelling vision for economic revival. Here, we delve into Thilan’s key points and outline a roadmap for boosting investments and strengthening the nation's economy.

Investment Successes & Challenges:

Thilan recalled the significant successes of the BOI during his tenure from 1996 to 2001. Sri Lanka attracted investments in export-oriented industries like apparel and light engineering, driving economic growth despite a challenging political climate. Infrastructure projects such as ports and telecommunications set new benchmarks for private-public partnerships.

However, in recent years, the BOI’s institutional capacity weakened. Inconsistent policies, a lack of coordination, and a focus on non-tradable sectors led to a decline in Foreign Direct Investment (FDI). The once-celebrated BOI struggled to guide investors effectively, resulting in stalled projects and limited opportunities.

Proposed Solutions:

Thilan presented a roadmap to restore confidence and attract global investments:

1. Institutional Strengthening:

   The BOI must regain its authority to act as a single-window solution for investors. By enhancing its capacity to coordinate across government agencies, the BOI can effectively guide investments from inception to execution.

2. Clear Policies and Transparency:

   Inconsistent tax policies and fluctuating regulations have deterred investments. Sri Lanka should adopt clear ground rules, including thorough ROI feasibility studies for infrastructure projects.

3. Public-Private Partnerships (PPPs):

   Transparent and competitive procurement processes can unlock PPPs’ potential in building essential infrastructure. Projects like ports and renewable energy must be guided by well-structured concession agreements that ensure optimal returns.

4. Regional Integration and Diaspora Engagement:

   Deeper regional integration through trade agreements with neighboring countries is crucial. Additionally, leveraging the Sri Lankan diaspora’s talent and investment potential can stimulate innovation and growth.

Opportunities and Optimism:

Despite recent economic setbacks, Thilan remains optimistic about Sri Lanka’s future. Investment opportunities abound in renewable energy, healthcare, agriculture, and tourism. The nation’s geographic location and strong workforce present a golden opportunity to establish itself as a competitive investment destination. Bold entrepreneurship, coupled with supportive policies, will lay the foundation for renewed investor confidence.

Conclusion:

Thilan Wijesinghe's vision is clear: Sri Lanka can achieve economic revival by strengthening its institutions, maintaining policy consistency, and fostering leadership that prioritizes efficient implementation. By embracing this roadmap, Sri Lanka can become an investment powerhouse, attracting FDI that empowers its people and transforms the economy.

For more insights, watch the full discussion between Thilan Wijesinghe and Deepak Bagla during Face The Nation’s special edition titled "Investment and Beyond," which aired on Friday, April 19th, 2024 at the top of this page.