Sunday May 31, 2026
Sunday May 31, 2026
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Prime Minister Dr. Harini Amarasuriya
By Charumini de Silva
Prime Minister Dr. Harini Amarasuriya yesterday pitched Sri Lanka as a resilient and reform-driven investment destination to German businesses, whilst assuring policy consistency, macroeconomic stability and stronger governance reforms as the country seeks to deepen economic ties with Europe.
Addressing the inauguration of the Sri Lankan-German Business Forum 2026 titled “Building Trusted Partnerships” in Colombo, the Prime Minister said Sri Lanka had made steady progress in stabilising the economy, while balancing fiscal consolidation with social protection and inclusive growth.
“It is a very important moment for economic cooperation and partnership for our country and for the region as a whole,” she said, noting that nearly 40 German business delegates were participating in the forum, reflecting continued confidence and interest of the German business community in Sri Lanka’s economic potential and future opportunities.
Dr. Amarasuriya said Germany remained Sri Lanka’s fourth-largest export destination and fourth-largest source of tourists, while more than 160 German companies currently operate or have invested in the island nation.
“Your presence reflects the long-standing partnership between Germany and Sri Lanka, built on trade, investment, technology transfer, development cooperation and strong private sector collaboration,” she added.
The Prime Minister also used humour to promote Sri Lanka’s tourism appeal, telling delegates: “Sri Lanka is a very dangerous country to come to, because once you check in, you definitely find it extremely difficult to check out.”
She noted that German tourists were among the island’s most loyal repeat visitors and urged Germany to reclaim its previous position as Sri Lanka’s top tourism source market.
Highlighting the country’s economic recovery, the Prime Minister said Sri Lanka recorded approximately 5% growth in 2025, per capita GDP exceeded $ 5,000, while Government revenue improved to 16.7% of GDP from 13.6% a year earlier, and the fiscal deficit narrowed sharply to 2.3% of GDP from 6.8% in 2024.
“These outcomes reflect continued efforts towards fiscal consolidation and macroeconomic stability,” she said.
Dr. Amarasuriya also confirmed that Sri Lanka had reached a staff-level agreement on the combined fifth and sixth reviews under the IMF-supported Extended Fund Facility (EFF) program on Wednesday, describing it as a key milestone in the country’s reform agenda.
However, she stressed that reforms must remain grounded in equity, inclusion, social protection and sustainability, warning that economic restructuring often disproportionately affected working people, women and vulnerable communities.
“As these measures advance into the implementation phase, it is essential that they remain grounded in values and principles of equity, inclusion, social protection and sustainability, so that macroeconomic stability is not pursued in isolation from social justice,” she said.
Dr. Amarasuriya acknowledged that ease of doing business and public sector reform remained among the Government’s most challenging priorities, noting that digitalisation was key to improving efficiency and investor confidence.
“One of the key factors that has made Sri Lanka challenging for investors in the past is policy inconsistency. We are committed to ensuring policy consistency and stability going forward,” she stressed.
The Prime Minister said Sri Lanka’s strategic location, skilled workforce, regional connectivity and improving investment climate positioned the country as a natural hub linking East and West.
“I think we offer the full and unique package. Because of our social infrastructure, human resources, human capital and natural environment, Sri Lanka offers a unique proposition that really needs to be explored further,” she said.
She also highlighted Sri Lanka’s expanding trade integration through free trade agreements with India, Pakistan, Singapore and Thailand, giving investors access to wider regional markets.
In addition, Dr. Amarasuriya noted improvements in governance and transparency indicators, including the Corruption Perceptions Index, as part of efforts to strengthen accountability and institutional integrity.
On bilateral cooperation, she praised Germany’s longstanding support for vocational education and skills development in Sri Lanka, particularly through institutions such as German Tech and vocational training initiatives in Kilinochchi.
She also announced plans to explore a new German-supported vocational training initiative specialising in renewable energy, particularly solar and wind power, in southern Sri Lanka.
The Prime Minister extended an invitation to German investors to participate in the upcoming “Expo Sri Lanka”, in Colombo from 14 to 17 January 2027 after a 14-year gap, with participation expected from over 1,500 international delegates.
Inviting German businesses to strengthen partnerships with Sri Lankan counterparts, she expressed confidence that the discussions taking place during the forum would open new avenues for cooperation between the two countries.
She also encouraged delegates to explore Colombo and Sri Lanka beyond the conference venue. “I can guarantee you it will be an unforgettable experience, and I know you will continue to return,” she added.
