Saturday Sep 06, 2025
Saturday Sep 06, 2025
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Arj Samarakoon speaking at a business forum on reforms
At a recent panel on economic reforms, Arj Samarakoon, Consultant at Plus94 Fund, made a pointed observation: Sri Lanka is not short on ambition, but it lacks the consistency and predictability that global investors demand. His remarks cut to the heart of the issue, without credibility and stability, Port City and other reform projects risk becoming stalled opportunities.
Sri Lanka’s annual foreign direct investment (FDI) remains stuck around the one-billion-dollar mark, a figure that has barely shifted despite high-profile projects and global outreach campaigns. In stark contrast, Vietnam attracts more than twenty billion dollars each year, while countries like Singapore and Dubai continue to reinforce their positions as magnets for international capital.
1. Stable and Predictable Laws
Samarakoon emphasized that Sri Lanka must first guarantee policy stability. The Port City project, envisioned as a global special economic zone, has been hindered by shifting legal frameworks that change with each political regime. “If you are going to set something up, it needs to be very clear and consistent throughout the process,” Samarakoon argued.
2. Reliable Delivery Processes
Beyond laws, Samarakoon drew attention to Sri Lanka’s unpredictable processes. Delays in issuing approvals, uncertainty in timelines, and unclear communication create a perception of inefficiency. “There is no consistency on when something will be delivered or when you can get an answer,” Samarakoon said.
3. Global Marketing and Positioning
Samarakoon’s third reform is about storytelling. Global rivals aggressively market their economic zones, highlighting their advantages with clarity and confidence. For Port City to succeed, Sri Lanka must build a sustained campaign that positions it as a gateway for finance, logistics, and technology in South Asia.
Samarakoon’s interventions echoed a common investor sentiment: incentives like tax breaks are less important than regulatory clarity. A billion-dollar investor is not swayed by temporary concessions if they cannot be sure of what the rules will look like five years ahead. Countries like Vietnam prove that credibility, not concessions, builds momentum.
Plus94 Fund is a Singapore-based investment advisory and private equity firm with operations in Sri Lanka, focused on building dollar-denominated revenue and driving sustainable growth. In January 2025, Plus94 launched the Crewstone Plus94 Technology Fund, a US$75 million initiative targeting early-stage tech companies across South and Southeast Asia.
For more information, visit Home - Plus94.
