In a significant move to strengthen bilateral economic ties, a high-level delegation from the Confederation of Indian Industry (CII) met with Sri Lankan President Anura Kumara Dissanayake in Colombo on Tuesday to explore fresh investment opportunities and deepen trade partnerships between the two South Asian neighbours.
Meeting Highlights
The CII delegation, comprising top Indian industrialists and sectoral representatives, was led by R. Dinesh, President of CII, alongside CEOs from sectors such as infrastructure, manufacturing, pharmaceuticals, tourism, IT services, and renewable energy.
During the meeting, President Dissanayake:
- Welcomed Indian investments, emphasising Sri Lanka’s strategic location, skilled workforce, and growing market access to South Asian, ASEAN, and Gulf regions.
- Outlined his government’s focus on policy stability, ease of doing business, and transparent regulatory frameworks to attract foreign direct investment (FDI).
- Highlighted upcoming projects under Sri Lanka’s economic revival plan, including port modernisation, logistics hubs, clean energy expansion, and tourism infrastructure upgrades.
Key Sectors Discussed
The delegation explored collaboration across diverse sectors:
| Sector | Proposed Opportunities |
|---|---|
| Infrastructure | Development of highways, urban metro networks, bridges, and connectivity projects under public-private partnership (PPP) models. |
| Energy | Solar, wind, and hybrid power investments in line with Sri Lanka’s target of 70% renewable energy capacity by 2030. |
| Tourism | Joint marketing to promote Buddhist pilgrimage circuits, beach tourism, and Ayurveda wellness packages. |
| Pharmaceuticals | Establishing bulk drug manufacturing units to reduce import dependence and enable low-cost medicine availability. |
| IT & Digital | Expansion of Indian IT firms’ back-end operations, digital skilling centres, and fintech solutions in Colombo and regional hubs. |
Statements from CII Leadership
R. Dinesh said:
“Sri Lanka holds immense potential for Indian industry, not just for market access but as a strategic gateway to ASEAN and the Indian Ocean. We welcome President Dissanayake’s vision to prioritise economic recovery and look forward to accelerating project partnerships that benefit both nations.”
He added that CII will facilitate business-to-business (B2B) connects, sectoral task forces, and policy advocacy dialogues in the coming months to concretise actionable projects.
Sri Lanka’s Push for Indian Investments
President Dissanayake reiterated:
“India has always been Sri Lanka’s closest economic partner. Our priority is to ensure that Indian businesses investing here have full support, security, and confidence. Your growth is Sri Lanka’s growth.”
He assured the delegation of:
- Single-window clearance mechanisms for high-value projects.
- Fast-tracking approvals in priority sectors.
- Long-term tax and duty incentives for greenfield investments creating local employment.
Current India-Sri Lanka Trade Snapshot
| Parameter | 2022-23 | 2023-24 (Projected) |
|---|---|---|
| Bilateral trade | $5.4 billion | $6.2 billion |
| India’s exports | $4.4 billion | $5.0 billion |
| India’s imports | $1.0 billion | $1.2 billion |
| Top exports | Petroleum products, pharmaceuticals, machinery, food items | – |
| Top imports | Spices, textiles, seafood | – |
(Compiled from India’s Ministry of Commerce data)
Recent Positive Developments
The meeting follows recent milestones in India-Sri Lanka economic ties:
- Launch of RuPay services in Sri Lanka, enhancing digital payment integration.
- Agreement to explore an undersea power transmission grid, enabling energy trade.
- Resumption of ferry services connecting Tamil Nadu and northern Sri Lanka, boosting people-to-people and business links.
Industry Reaction
Business leaders expressed optimism about:
- Policy reforms under President Dissanayake’s administration, aimed at stabilising the Sri Lankan economy post-crisis.
- Opportunities to co-create sustainable projects, leveraging Indian technology and capital with Sri Lankan local execution strengths.
- Potential for regional value chains integrating Sri Lanka with Indian manufacturing and export clusters.
Challenges Highlighted
Despite optimism, industry representatives flagged:
- Currency volatility risks.
- Need for faster contract enforcement mechanisms.
- Streamlining customs and port logistics to match ASEAN benchmarks.
President Dissanayake assured that these concerns are being addressed under Sri Lanka’s IMF-backed economic reform programme.
Next Steps
The CII delegation invited Sri Lankan ministries and sectoral leaders to India for:
- Sector-specific roadshows and investor summits.
- Signing of Memorandums of Understanding (MoUs) for targeted projects by end-2025.
- Joint working group formation to monitor project implementation and resolve policy bottlenecks.
Conclusion
The meeting between CII and President Anura Kumara Dissanayake marks a significant push towards revitalising economic ties, fostering regional integration, and driving mutually beneficial growth. As both countries navigate global economic challenges, enhanced partnership in infrastructure, energy, digital, and trade sectors promises to unlock new avenues for prosperity and people-centric development in South Asia.
Disclaimer: This news report is based on official statements from CII, the office of the President of Sri Lanka, and Indian Ministry of Commerce data. Readers are advised to follow CII updates for detailed sectoral MoU announcements and upcoming investment summit schedules.
