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Why Invest in Sri Lanka

A Strategic Logistics Hub

Sri Lanka functions as a hub of connectivity, located at the very epicentre of the Indian Ocean’s East-West trade routes, including the Strait of Malacca, the Strait of Hormuz, and the Bab-El-Mandeb trade route. The famed Strait of Malacca is one of the most significant regional ports handling approximately 60% of the world’s maritime transport, while the Strait of Hormuz is a vital global oil checkpoint.

Known as the pearl of the Indian Ocean, Sri Lanka is home to a rich cultural heritage and breathtaking natural landscapes. From pristine beaches along the island’s coast to lush hill country tea estates and high biodiversity forest reserves, Sri Lanka is abundant in natural resources. It also has a long-standing history in gem and spice trading and is known for its exquisite tea blends.

Sri Lanka operates three ports, out of which the Port of Colombo is ranked #1 among the best-performing ports in South Asia and #28 internationally. Additionally, Sri Lanka’s four highly functional international airports provide easy access to top destinations within four hours as well as an ideal transit spot for long-haul flights.

The country’s extensive road networks and newly built highways help transport goods fast and securely across the island, significantly improving trade prospects. According to the Central Bank of Sri Lanka, the country’s economy is projected to grow by 3.1% by 2027 and 2028, signalling a positive outlook for investors.

The APAC Region

The APAC Region is home to 235 Fortune Global 500 companies, with countries from the region contributing to 70% of the global GDP growth in 2023. Strategically positioned in this fast-growing region, Sri Lanka can easily access high-capital opportunities in international business and trade.

Discover Sri Lanka; a country positioned for success within
a fast-growing region

Sri Lanka’s economy is on the rise and is expected to grow by 5% in 2027.

With a steady growth-oriented economy, a large pool of skilled talent, and a booming service sector, Sri Lanka is among the top-performing South Asian countries. Here are some of Sri Lanka’s top highlights:

2022
0.78
Highest Human Development Index score in South Asia
2023
92%
Regional Literacy Rate
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2022
$74.4 Billion
Total GDP
2022
8.5 Million
Labour Pool
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Fast Growing Modern
Economy

Sri Lanka’s economy is on a positive growth trajectory, driven by economic diversification and service-sector development in information technology (IT) and IT-enabled services. Port City Colombo provides start-up-friendly financial incentives and cost-effective policies, making it a top IT destination in Asia.

Strategic Location

  • The Colombo Port ranks #1 in South Asia and #28 worldwide
  • Four international airports and two high-performance seaports

Market Access

  • Sri Lanka operates over 7,000 zero-duty tariff lines to 27 EU countries
  • Duty-free product exports to India and Pakistan, where consumer markets exceed $850 Billion

Agile Talent

  • 92% regional literacy rate
  • 40,677 graduates from government universities in 2022

Quality of Life

  • 0.60 Human Capital Index Score in 2022
  • Ranked #3 for health and security in South Asia

Compound Annual Growth Rates (CAGR)

15.75%
Banking Sector CAGR (2024-2028)
11.94%
ICT Sector CAGR (2024-2028)
5.16%
Tourist Sector CAGR (2024-2028)
$1.5 Billion
All-Time High Export Sector Valuation in January 2024

Sri Lanka’s Areas of Competitiveness

Business
Explore a business environment with investor-friendly legal structures, strong political frameworks and bilateral ties with major regional countries.
  • Ranked #6 in the Global Innovation Index in Central and South Asia
  • Foreign reserves projected to reach $5.4 Billion by 2024 end
  • Exports projected to reach $31.3 Billion by 2027
  • Centralised financial governance fortified by Banking (Special Provisions) Act, No.17, 2023
  • 11 ongoing free trade agreements with regional fast-growing economies like India, Pakistan, Singapore, and Thailand
Manufacturing and IT
Drive innovation through high-value sector investments and global-scale manufacturing of specialised products.
  • $3 Billion estimated revenue in 2024
  • 1st country in South Asia to trial 5G mobile technology
  • 100% country coverage for network APIs through GSMA Open Gateway Initiative
  • 65,000 km fibre network for fixed broadband and mobile services
  • #12 in the APAC region and #80 globally for network readiness
Tourism and Hospitality
Invest in a country known for its breathtaking natural beauty and unparalleled tourist experiences.
  • Voted in the ‘Top 20 Most Favourite Destinations’ by Conde Nasté Traveler
  • Ranked #4 in ‘Best Solo Destinations’ by Forbes
  • Ranked #8 in ‘50 Most Instagrammable Places in the World’ by Big 7 Travel
  • Hospitality is projected to grow at a CAGR of 7.5% (2024-2029)
  • Projected target foreign exchange earnings of $5 Billion by 2025
  • 40% of the PCC Gross Floor Area is allocated for the hospitality sector
  • Five high-capacity international hotel and resort spaces proposed for PCC

Highly-Skilled Human Capital

Leverage the skillsets of a young, specialised, and dynamic workforce in Sri Lanka
  • 1.4% of the population are between the ages of 20 and 30
  • Workforce primarily present in the service sector
  • 8.5 Million labour pool
  • Universal public education system
  • 92% regional literacy rate
  • 40,677 graduates from government universities
  • Ranked among the top 28 countries for high human development
Upscale your business in a fast-growing startup ecosystem accessing top-tier affordable talent

Sri Lanka’s low-cost talent pool is globally recognised

Sri Lanka is an emerging South Asian IT destination. Recognising its talent potential, over 600 globally-recognised companies source their tech talent here.

Drive innovation at Sri Lanka’s new tech parks

The Ministry of Technology has commissioned five technology parks with advanced infrastructural and incubator facilities to power aspiring startups.

Future-Focused Business Hub

With a progressive perspective on consistently improving the efficiency of business activity, Sri Lanka combines technological expertise with persistent infrastructure development. Learn more about Sri Lanka’s innovative and growing IT industry and expansive infrastructure developments.

Flourishing IT Sector

  • Sri Lanka ranked as the #4 Global Ecosystem for the ability to hire tech talent
  • 29% year-on-year startup ecosystem growth since 2018
  • Ranked #1 Asian Ecosystem in Affordable Talent
  • 1,000 projected startups in Sri Lanka by 2025
  • Multinational IT companies operating in Sri Lanka offer incubator programmes and graduate upskilling services

Upgrading Regional Connectivity

  • Sri Lanka is directly connected to more than 45 global destinations
  • Outbound travellers can reach top South Asian destinations within 2-4 hours
  • Sri Lankan airports tracked approximately 7,558,535 passenger movements in 2023
  • Colombo International Container Terminals (CICT) handled approximately four Million TEUs of cargo in 2023
  • Sri Lanka is positioned along three major global shipping routes

Quality of Life

Enjoy diverse ethnic cuisine and a vibrant multicultural society with welfare-driven healthcare, world-class hospitality, and stunning natural beauty.

  • Score of 0.60 in the Human Capital Index 2022
  • Ranked #3 for quality of life in South Asia
  • Ranked #3 for health and security in South Asia
  • 66.7% internet penetration islandwide with favourable internet connectivity
  • Ranked #63 in World Happiness Report 2023

Experience Sri Lanka’s rich cultural heritage and breathtaking landscapes.

  • Ranked #9 in best places to visit in Asia
  • 57 most biodiverse country in the world with a biodiversity index score of 96.92
  • A multi-ethnic and multi-religious country
  • Diverse attractions such as pristine beaches, cultural cities, and world heritage sites

Sources:
Economic and Social Commission for Asia and the Pacific, 2024 | Institute of National Security Studies, 2023 | The World Bank, 2022 | Sri Lanka Labour Force Statistics Report, 2023 | UNCTAD Review of Maritime Transport, 2022 | CPPI, 2022 | Brief on International Trade, 2021 | Ministry of Defence, 2023 | Department of Commerce (ISFTA & PSFTA) | CEIC, 2023 – India | CEIC, 2023 – Pakistan | Institute of National Security Studies, 2023 | University Grants Commission Graduate Outputs, 2022 | World Bank Report, 2023 | GHS Index, 2021 | Statista, 2023 | Statista, 2023 |Statista, 2023 | Sri Lanka Exports, 2024 | Global Innovation Index, 2023 | Daily News, 2024 | Sri Lanka Export Development Board, 2023 | CBSL Annual Policy Statement, 2024 | SL Department of Commerce | JLL-ICTA Report, 2022 | Developing Telecoms, 2022 | GSMA, 2023 | SLT Mobitel Annual Report, 2022 | Network Readiness Index, 2023 | Conde Nast Traveller, 2023 | Forbes, 2023 | Big 7 Travel, 2024 | Mordor Intelligence Analysis, 2024 | Strategic Plan for Sri Lanka Tourism, 2022 | Economic and Social Commission for Asia and the Pacific, 2024 | Sri Lanka Labour Force Statistics Report, 2022 | Sri Lanka Labour Force Statistics Report, 2023 | National Education Policy Framework, 2022 | Institute of National Security Studies, 2023 | University Grants Commission Graduate Outputs, 2022 | Global Knowledge Index, 2023 | Economy Next, 2022 | Start-up Genome, 2023 | Innovation Lab Asia, 2023 | Start-up Genome, 2023 | Start-up Genome, 2023 | Airport and Aviation Services Sri Lanka, 2023 | CICT, 2023 | World Bank Report, 2023 | Numbeo Quality of Life Indicator, 2021 | GHS Index, 2021 | DatarePortal Internet Connectivity Statistics, 2023 | World Happiness Report, 2023 | U.S. News & World Report Ranking, 2023 | Global Biodiversity Index, 2022

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