Sri Lanka has significant scope to strengthen its development path by expanding premium tourism segments, opening up new destinations in the Northern and Eastern regions, and growing exports in digital services, according to IFC South Asia Regional Director Imad Fakhoury.
Speaking at the Sri Lanka Economic Summit, Fakhoury said the country must reshape its global image by promoting itself as an environmentally sustainable, outward-looking, and export-focused economy. He noted that such a strategy would reinforce Sri Lanka’s goal of becoming a key transshipment hub, while also fostering centres of excellence in areas such as digital services, agribusiness, specialised manufacturing, and diversified tourism.
The International Finance Corporation (IFC) emphasised that Sri Lanka needs to reposition itself internationally as a reliable and attractive investment destination. This, it said, must be accompanied by consistent policies and improvements to the overall business climate in order to fully realise the country’s economic potential.
Fakhoury explained that despite recent economic challenges, the IFC continues to maintain a broad and long-term engagement in Sri Lanka. He stressed that sustainable prosperity cannot be achieved through inward-looking policies, but requires stronger competitiveness, increased investment, and a clear focus on exports.
He also pointed out that Sri Lanka’s economic story reflects a contrast between strong social achievements and repeated financial crises. While the country has achieved notable progress in human development and maintains relatively high income levels for the region, it has faced several economic downturns, including the crisis in 2022.
Calling on both policymakers and the private sector to rethink Sri Lanka’s international positioning, Fakhoury underlined the importance of policy stability. He said future branding efforts must be supported by predictable regulations and continuous reforms to improve the ease of doing business.
The IFC currently manages a long-term investment portfolio of approximately USD 270 million in Sri Lanka, spread across about a dozen companies. This is complemented by short-term financing facilities, advisory services, and blended finance solutions aimed at supporting private-sector growth.
