Foreign investment in Sri Lanka’s agriculture sector poised for growth, says global industry expert

Sri Lanka’s agriculture sector, a cornerstone of its economy, is showing early signs of becoming a new frontier for foreign direct investment (FDI), despite currently attracting a fraction of the country’s total foreign capital inflows.

According to Lieke Schröder, a Project Manager specialising in foreign investment projects in Sri Lanka, the sector’s potential is beginning to garner serious attention from both government bodies and private investors.

In a recent social media post, Schröder highlighted a stark contrast: while sectors like tourism, apparel and IT dominate FDI discussions, agriculture accounts for a mere 0.24 percent of sector-wise estimated investment as of June 2025, according to the Board of Investment (BOI) dashboard.

However, she argued that this low figure represents a significant opportunity. 

“Agriculture has the potential not only to generate economic growth but also to address food security, empower rural communities and create jobs in regions that need them most, especially in the Northern province,” Schröder stated.

Schröder, who is actively involved in projects in the North, pointed to several encouraging developments that signal a positive shift.

A key change has been increased engagement from the government to address the long-standing investor challenges.

“In my discussions with Industrial and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, we addressed the challenges foreign investors face: lengthy bureaucracy, circular decision-making and delays,” she noted. 

Schröder expressed optimism, stating, “Encouragingly, I have seen efforts to break this cycle, shorten timelines and focus on outcomes.”

This sentiment was echoed in meetings with the BOI. 

Schröder mentioned that during an Investor Facilitation Coordinating Committee meeting chaired by Treasury Secretary Dr. Harshana Suriapperuma, investment projects in the North were given serious consideration. 

“There is recognition that attracting responsible foreign investment can bring not only capital but also know-how, networks and market access,” she added.

The private sector is also injecting new energy into the field. After attending a recent start-up event hosted by Disrupt Asia and the Lankan Angel Network, Schröder was inspired by the fusion of agriculture and technology. 

She highlighted the presence of “young, motivated start-up founders, including from Jaffna District”, whose innovations show that the next generation is ready to tackle the old challenges with fresh solutions. 

As one of the few active foreign investors in agriculture in the North, Schröder concluded with a hopeful outlook. 

“With the right partnerships, Sri Lanka can position agriculture as a pillar of its investment strategy, just as important as tourism, IT or manufacturing,” she affirmed. 

“The government is listening. The BOI is engaging and the private sector is stepping forward.” 

(NF)