Optimism among Swedish companies working with Sri Lanka

Growth in the last five years, growth in 2024 and optimism for 2025. These are some of the key findings from the Sweden-Sri Lanka Business Council’s (SSLBC) 2025 Membership Survey. The results are also a reflection of the increasing interest for Sri Lanka among Swedish companies. In two years, the number of members of the SSLBC has grown from 75 to 100.

“The results are encouraging. Our members have developed their business relations with Sri Lanka in recent years. 

We are also noticing a general increase in interest from the Swedish business community for Sri Lanka. The results should also be seen in the light of Sri Lanka’s fiscal recovery since 2022. 

At the same time, the visa issue continues to be raised by our members, both for business visits and conferences or fairs. Action is needed by the relevant authorities,” said SSLBC Secretary General Leif I. Ohlson.

The member survey was conducted in February 2025. In total, it was answered by 50 percent of the members. The respondents include companies active in IT, manufacturing, trade, food and tourism. Three out of four have been operating in or with Sri Lanka for at least three years. 

Nearly six in 10 say their business in or with Sri Lanka has grown in the last five years. A similar proportion has experienced growth in 2024. There is also strong confidence in the development of the business environment in Sri Lanka in 2025. 

Seven out of 10 believe in a positive development, compared to one in four in 2023, when the survey was last conducted and the effects of the fiscal crisis in 2022 were still clearly visible. 

Optimism is also strong among the members for their own business in 2025. More than six in 10 expect their activities in or with Sri Lanka to develop positively this year.

The members were also asked to rank the issues that are most important to them in 2025. In total, seven areas were ranked (the figure shown is the combined result of ‘most important’, ‘second most important’ and ‘third most important’:

1. Availability of skilled labour (74 percent)

2. Clear and predictable import/export rules (47 percent)

3. Financing (44 percent)

4. Flight connections (37 percent)

5. Stable payment flows (35 percent)

6. Positive image of Sri Lanka in Swedish media (34 percent)

7. Transportation (29 percent)

“Sri Lanka has a highly educated workforce, not least in the IT sector. The salary situation is also favourable. This is a reason for many Swedish IT companies to establish themselves in the country. 

At the same time, only a few members have received support or assistance from the Swedish trade promotion agencies or their Sri Lankan counterparts in establishing or developing operations. There is more to be done here and over the past year, we have seen a greater commitment from them, which will certainly be visible in future surveys. 

However, presence on site and the opportunity to share their experiences with other entrepreneurs is most important. Here the SSLBC plays an important role with our many years of experience and continuity,” said Ohlson.