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Senior Economic Adviser to the Presidential Duminda Hulangamuwa – Pix by Ruwan Walpola
The Government plans to table three key investment-related bills by March or April to strengthen investor protection, establish a formal public-private partnership framework and reform State-Owned Enterprises, Senior Economic Adviser to the Presidential Duminda Hulangamuwa said, outlining the administration’s approach to generating growth and attracting private capital.
Delivering the keynote address at the inaugural Lanka Impact Investment Summit 2026, Hulangamuwa said the proposed legislation covering investment protection, public-private partnerships and State-Owned Enterprise reform was intended to provide predictability, reduce policy risk and support large-scale investment.
He said macroeconomic stabilisation had created the base for renewed growth following the 2022 default, but cautioned that higher growth could not be sustained without structural reform and policy discipline.
“4-5% growth will come naturally if the weather holds up,” Hulangamuwa said. “But to go beyond that, growth has to be policy-based, sustainable and inclusive.”
He warned against short-term measures such as money printing or tax cuts, arguing that such approaches eventually imposed costs through higher interest rates and currency pressures.
On fiscal performance, Hulangamuwa said consolidation efforts over the past two to three years had delivered tangible results, with Sri Lanka recording a primary surplus of 3.9% of GDP last year, exceeding the IMF benchmark of 2.3%.
He said this was the highest primary surplus recorded by the country and a key signal of restored fiscal discipline.
Addressing concerns that Sri Lanka could face renewed debt distress after 2028, Hulangamuwa rejected the narrative, citing the country’s debt restructuring outcomes and recent payment record.
“Last year we paid $ 3.2 billion in foreign debt,” he said. “In 2028, the annual payment is around $ 3 billion, and that level continues through to 2036.”
He said Sri Lanka had met its external obligations while reopening vehicle imports after nearly five years, issuing close to $ 2 billion in letters of credit and increasing official reserves from about $ 6 billion at the beginning of last year to around $ 6.8 billion by year-end.
“There is no truth in the claim that debt sustainability is at risk,” Hulangamuwa said.
Turning to growth drivers, he said the Government had identified sectors where Sri Lanka held comparative advantages, with tourism positioned as a central pillar due to its broad spill-over effects across the economy.
He said tourism policy would focus on diversifying products and destinations rather than relying solely on room capacity, alongside investments in airport expansion, expressways and supporting infrastructure to reduce travel times and improve accessibility.
Hulangamuwa also outlined plans to strengthen shipping and logistics, citing the need to expand port capacity, improve transshipment operations and develop a dry port near Colombo to facilitate faster customs clearance and cargo movement.
On capital markets, he said recent gains reflected renewed confidence following macroeconomic stabilisation and governance reforms, while stressing the importance of maintaining policy consistency to sustain investor participation.
On State-Owned Enterprise reform, Hulangamuwa said the proposed SOE bill would establish a holding company structure aimed at improving transparency, accountability and operational independence, with the possibility of partial listings over time.
He said the Government would continue to avoid unsolicited proposals and frequent policy shifts, arguing that transparent processes, even if slower, were essential to long-term investor confidence.
The Government’s approach, he said, was to provide investors with clarity on policy direction over the medium term, allowing them to focus on commercial decisions rather than political or regulatory uncertainty. “The message is clear, Sri Lanka is ready, Sri Lanka is open,” Hulangamuwa said. “I can be proud of the change this Government has brought in building trust and confidence, and that is paramount for any investment coming into the country.”
