Sri Lanka has emerged from its economic crisis with renewed stability, stronger growth and a pipeline of investment-ready projects, with the country now actively courting Vietnamese investors to capitalize on opportunities across manufacturing, logistics, tourism and infrastructure.
Addressing the Sri Lanka–Vietnam Trade, Investment and Tourism Cooperation Forum recently, Dr. Sulakshana Jayawardena, Acting Chairman of the Board of Investment of Sri Lanka (BOI), said the country was now “Open for business” after implementing sweeping economic reforms and restoring investor confidence.
Dr. Jayawardena said Sri Lanka’s economy had rebounded strongly after contracting by 2.3% in 2023, recording GDP growth of 5.0% in both 2024 and 2025. The Central Bank of Sri Lanka (CBSL) is projecting further growth of around 4.0% in 2026.
Merchandise exports increased from US$ 11.9 billion in 2023 to US$ 13.6 billion in 2025, while tourism earnings rose sharply from US$ 2.07 billion to US$ 3.22 billion during the same period, supported by more than 2.3 million tourist arrivals last year.
Foreign Direct Investment inflows also showed a significant recovery, reaching US$ 1.063 billion in 2025 compared to US$ 614 million in 2024, with the BOI targeting US$ 1.5 billion this year.
Dr. Jayawardena described Vietnam as a strategic partner for Sri Lanka, noting that bilateral trade currently favours Vietnam, with Sri Lankan exports amounting to around US$ 40 million annually against imports of nearly US$ 238 million. However, he said the imbalance represented an opportunity for stronger collaboration in manufacturing, export processing and regional supply chains.
He said Sri Lanka’s strategic location along one of the world’s busiest East-West shipping routes, combined with preferential trade access to the European Union, the United Kingdom, India and Pakistan, positioned the island as an attractive export and logistics hub for Vietnamese businesses seeking to expand into South Asia and beyond.
Highlighting Sri Lanka’s investment climate, Dr. Jayawardena said the country permits 100% foreign ownership in most sectors and guarantees full repatriation of profits and capital. He also pointed to the country’s skilled, English-speaking workforce and strong professional services sector.
The BOI chief unveiled a pipeline of 30 structured investment projects spanning five priority sectors, including manufacturing, logistics, tourism, infrastructure and mixed development. Among the proposed ventures are dairy processing plants, an Active Pharmaceutical Ingredient facility, an EV assembly plant, logistics hubs linked to Colombo Port, aircraft maintenance facilities at Mattala International Airport, and tourism projects including a heritage hotel in Kandy and a theme park in Nuwara Eliya.
“Sri Lanka has turned the page on its economic crisis,” Dr. Jayawardena told delegates, urging Vietnamese investors to seize emerging opportunities in the island’s recovering economy.
Source : Daily News