Sri Lanka attracts UAE investors as a secure investment destination
The Morning: Sri Lankan President Anura Kumara Dissanayake declared that the island nation has “irreversibly transformed” into a secure investment destination, during high-stakes talks recently with UAE Deputy Prime Minister Sheikh Abdullah bin Zayed Al Nahyan, a statement released by the President’s Media Division (PMD) said.
The assurance came as the Gulf state pledged to prioritise energy, tourism and employment partnerships in what analysts see as a critical test of Colombo’s post-crisis credibility.
“The era of policy uncertainty is over,” Dissanayake said during the Presidential Secretariat meeting, directly addressing investor concerns stemming from Sri Lanka’s 2022 sovereign default.
“We’ve established robust legal safeguards and macroeconomic stability – this administration will not permit a return to the conditions that previously deterred capital inflows,” Dissanayake added.
The UAE delegation, representing one of Asia’s most strategic sovereign wealth investors, responded with concrete commitments.
Sheikh Abdullah confirmed Abu Dhabi would accelerate energy sector collaborations, particularly in renewable infrastructure, expand tourism linkages between the Emirates and Sri Lanka’s resurgent hospitality industry, and facilitate employment opportunities for Sri Lankan workers in UAE construction and service sectors.
Dissanayake leveraged the diplomatic engagement to showcase Sri Lanka’s economic rehabilitation, detailing completed debt restructuring milestones that have restored IMF programme compliance.
Government sources indicate the UAE expressed particular interest in Colombo Port City developments, a $ 1.4 billion China-backed special economic zone where Emirati firms are now evaluating commercial real estate and fintech ventures.
With UAE nationals comprising Sri Lanka’s second-largest tourist demographic pre-crisis, both leaders emphasised restoring 2019 visitation levels.
“Our goal isn’t just recovery, we’re positioning Sri Lanka as the Indian Ocean’s premier luxury destination,” Dissanayake stated, referencing planned marina developments and high-end resort expansions along the southern coast.
The UAE delegation included senior officials from Abu Dhabi’s energy and trade ministries, signalling comprehensive partnership potential. Observers note the timing proves strategic, as Western investors remain cautious, Gulf capital appears increasingly willing to anchor Sri Lanka’s comeback story.
OSL take:
Sri Lanka’s ongoing economic activities and the overall strength, resilience as well as the target of becoming a hub in the South Asian region have all attracted the attention of many foreign businesses/investors. The country’s strategic positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with other countries while also working on further expanding trade ties have all made Sri Lanka an emerging business destination in the region. Given all these factors, the expanding business/investment opportunities in all key economic sectors in the country present lucrative business ventures for foreign businesses/investors. Sri Lanka’s strong banking network and development programme aimed at developing infrastructure and supplementary infrastructure facilities to meet the increasing demand have ensured that the country has met the prerequisites of a growing business destination. Also, the interest shown by UAE businesses/investors in Sri Lanka could also further boost confidence among other foreign businesses/investors to confidently explore the growing business potential and opportunities in the South Asian Island nation.
| Article Code : | VBS/AT/20250429/Z_1 |