Optimism among Swedish companies working with Sri Lanka
Daily FT: Growth in the last five years, growth in 2024, and optimism for 2025. These are some of the key findings from the Sweden-Sri Lanka Business Council’s (SSLBC) 2025 Membership Survey.
The results are also a reflection of the increasing interest in Sri Lanka among Swedish companies. In two years, the number of members of the SSLBC has grown from 75 to 100.
SSLBC Secretary General Leif I Ohlson said: “The results are encouraging. Our members have developed their business relations with Sri Lanka in recent years. We are also noticing a general increase in interest from the Swedish business community in Sri Lanka. The results should also be seen in the light of Sri Lanka’s fiscal recovery since 2022. At the same time, the visa issue continues to be raised by our members, both for business visits and conferences or fairs. Action is needed by the relevant authorities.”
The member survey was conducted in February 2025. In total, it was answered by 50% of the members. Respondents include companies active in IT, manufacturing, trade, food, and tourism. Three out of four have been operating in or with Sri Lanka for at least three years.
Nearly six in 10 say their business in or with Sri Lanka has grown in the last five years. A similar proportion has experienced growth in 2024. There is also strong confidence in the development of the business environment in Sri Lanka in 2025. Seven out of 10 believe in a positive development, compared to one in four in 2023 when the survey was last conducted and the effects of the fiscal crisis in 2022 were still clearly visible.
Optimism is also strong among members for their own business in 2025. More than six in 10 expect their activities in or with Sri Lanka to develop positively this year.
Members were also asked to rank the issues that are most important to them in 2025. In total, seven areas were ranked (the figure shown is the combined result of ‘most important,’ ‘second most important,’ and ‘third most important’): 1. Availability of skilled labour (74%); 2. Clear and predictable import/export rules (47%); 3. Financing (44%); 4. Flight connections (37%); 5. Stable payment flows (35%); 6. Positive image of Sri Lanka in Swedish media (34%), and 7. Transportation (29%).
Sri Lanka has a highly educated workforce, not least in the IT sector. The salary situation is also favourable. This is a reason for many Swedish IT companies to establish themselves in the country. At the same time, only a few members have received support or assistance from Swedish trade promotion agencies or their Sri Lankan counterparts in establishing or developing operations. There is more to be done here and over the past year we have seen a greater commitment from them, which will certainly be visible in future surveys.
OSL take:
Sri Lanka’s economic resilience and ongoing economic activities resulting in the overall expansion of the country’s economy have all managed to attract the attention of many foreign businesses/investors to explore the growing opportunities in the country. The country’s strategic positioning in the Indian Ocean, the strong trade ties enjoyed with many countries and the target of becoming a hub in the South Asian region have also added to Sri Lanka’s growing image as an emerging business destination in the region. The growth and profits recorded by many foreign businesses already operating in the country as well as their expansion programmes serve as confidence boosters to other foreign businesses/investors to enter Sri Lanka’s economy. The optimism shown by Swedish businesses in Sri Lanka is further evident of the growing business potential in Sri Lanka. Given all these positive movements in the country, more Swedish businesses/investors as well as other foreign businesses/investors could explore the expanding business/investment opportunities in Sri Lanka while also looking at local and regional expansion through local collaborations.
| Article Code : | VBS/AT/20250402/Z_3 |