Friday Jul 03, 2026
Friday Jul 03, 2026
Friday, 3 July 2026 00:20 - - {{hitsCtrl.values.hits}}
BOI Director General
Dr. Sulakshana Jayawardena
– Pic by Upul Abayasekara
The Board of Investment’s (BOI) newly appointed Director General Dr. Sulakshana Jayawardena yesterday outlined a broad reform agenda to improve Sri Lanka’s investment climate, identifying policy inconsistency, cumbersome approvals, land acquisition delays, and skills shortages as among the principal obstacles preventing the country from attracting higher levels of foreign direct investment (FDI).
Addressing the CA Sri Lanka 5th Annual Economic and Tax Symposium, Dr. Jayawardena said Sri Lanka attracted $ 1.063 billion in realised FDI last year, falling short of its $ 1.5 billion target. The target for this year remains $ 1.5 billion in realised investments and $ 2 billion in committed investments.
As at June, realised FDI stood at approximately $ 250 million, highlighting the scale of the challenge in meeting this year’s target.
Dr. Jayawardena distinguished between committed and realised investments, explaining that committed investments are recorded when agreements are signed with investors, while realised investments are recognised only after foreign currency is remitted into Sri Lanka through Inward Investment Accounts.
While acknowledging that global economic conditions continue to weigh on investment flows, he said Sri Lanka must also address longstanding domestic constraints.
“One of the key challenges to enhancing investor confidence is policy consistency and the institutional regulatory framework,” he said.
Dr. Jayawardena noted that, depending on the nature and location of a project, investors are often required to obtain approvals from more than 20 public institutions, with agencies operating under different procedures and without agreed timelines.
“If you are going to say no, that is acceptable if you tell it in a timely manner, rather than dragging and asking several things and putting the investment into trouble,” he said.
To address those shortcomings, the BOI plans to introduce a digital single-window investment approval platform, enabling investors to submit applications online through the BOI while electronically linking all relevant line agencies.
The platform, which has been under discussion for several years, is targeted for implementation before the end of this year.
“Our target is to introduce the system within this year,” Dr. Jayawardena said.
He said the platform would improve transparency by allowing investors to monitor the progress of approvals across Government agencies.
The Government is also moving ahead with an Investment Protection Act aimed at strengthening policy certainty and addressing investor concerns over abrupt policy changes.
Dr. Jayawardena said the draft legislation has been cleared by the Attorney General’s Department and the Government is now in the process of introducing the Act.
“Our challenge is that sometimes people criticise the Government for changing policy overnight,” he said.
Land acquisition remains another significant bottleneck for investors.
Dr. Jayawardena said transferring State land for investment projects currently takes between 18 and 24 months, prompting the Government to review existing circulars governing land allocation and leasing, while also considering measures to facilitate freehold ownership for eligible investors.
“We need to simplify this process,” he said.
He also identified skills development as another priority, noting that Sri Lanka must better align workforce capabilities with the requirements of industry if it is to attract higher-value investments.
Dr. Jayawardena said the reforms under way are intended to improve investor confidence and make Sri Lanka a more competitive destination for foreign investment.
