Sri Lanka to set up one-stop-shop to cut investment red tape
EconomyNext: Sri Lanka’s Cabinet of Ministers has approved the establishment of a National Business Facilitation Centre under the Presidential Secretariat, minister Nalinda Jayatissa said, to streamline investment approvals and remove administrative bottlenecks.“Local investment in the country faces a number of challenges due to the existence of an approval process spread across various government institutions, institutions operating in isolation with minimal internal communication.”These administrative delays are spread across project development, land allocation, environmental clearances, regulatory permits, water and electricity connections, and access to banking facilities.Addressing questions regarding potential overlap with the Board of Investment (BOI), Jayatissa said launching an industrial project requires approvals from a wide range of state bodies — including the Central Environmental Authority, Urban Development Authority, Inland Revenue Department, and multiple line ministries-which exceeds the BOI’s standalone scope.“This is not meant to replace the BOI. At present, the burden falls directly on the investor or industrialist to navigate all these separate institutions individually to get approvals and execute their investment,” Jayatissa said.To manage cross-agency coordination, a national-level steering committee comprising ministry secretaries and heads of relevant institutions will be established under the Presidential Secretariat.The center will be staffed through secondments from both the public and private sectors, as well as on a contract basis.
OSL take:
Sri Lanka’s decision to establish a National Business Facilitation Centre under the Presidential Secretariat reflects a broader effort to make the country more attractive to foreign businesses/investors as the economy moves from stabilisation towards growth. For years, administrative complexity and the need to obtain approvals from multiple state institutions have been identified as major obstacles to investment. By bringing greater coordination to areas such as land, environmental clearances, utilities, regulatory permits and other project approvals, the Sri Lankan Government hopes to reduce delays and make Sri Lanka a more predictable destination for investment. The opportunity is increasingly significant as economic activity expands. Investment potential is emerging across virtually every major sector, including renewable energy, tourism, ports and logistics, manufacturing, agriculture and food processing, pharmaceuticals, technology and digital services, financial services and infrastructure. Sri Lanka’s strategic location in the Indian Ocean provides an additional advantage. Its proximity to India and other fast-growing Asian markets, together with its ports and developing logistics infrastructure, offers international companies opportunities to use the country not only as a domestic market but also as a platform for accessing the wider South Asian and regional economy. The expanding energy sector, including renewable power and offshore exploration, is another emerging investment frontier, while tourism continues to create opportunities in hotels, hospitality, transport and related services. Manufacturing and export-oriented industries could similarly benefit from Sri Lanka’s skilled workforce and access to regional markets.
| Article Code : | VBS/AT/20260902Z_3 |