Declining interest rates, economic stability to boost SL’s investment climate: Abeywardana

By Nuzla Rizkiya

Sri Lanka’s improving economic stability and declining interest rates present a strong opportunity for market capitalisation growth, HNB Investment Bank CEO and Managing Director Ray Abeywardana said.

Speaking to Mirror Business along the sidelines of the event, he noted a growing trend in investments toward fintechs, back-office systems and technology, are predicting substantial growth in these sectors over the next two years.

However, he flagged Sri Lanka’s debt repayment burden in 2029 as a key risk, urging targeted measures to address the challenge. 

“It would be helpful if regulatory developments continue, such as the privatisation of state-owned enterprises (SOEs). This will help us increase market capitalisation,” he said.

Meanwhile, HNB PLC CEO and Managing Director Damith Pallewatte stated that Sri Lanka’s investment climate is showing signs of significant improvement, driven by the continued agenda towards economic recovery.  

With the country regaining confidence following its exit from a default rating, he opined that investors are looking to re-enter the market with both local and global businesses actively seeking new opportunities.

“We see significant investor interest in sectors such as renewable energy, export-oriented agriculture, and financial instruments. There are several opportunities in equity-related investments and the rehabilitation of companies where we can provide support,” Pallewatte said.

However, he noted that Sri Lanka’s capital market operations could be significantly upgraded through technological integration and regulatory advancements to align with key developments such as the Port City project.