Sri Lanka woos Middle East investors as reforms shift focus to rebuilding

CSE Chief Executive Officer Rajeeva Bandaranaike (extreme right) addressing the forum. 
(Picture Courtesy Khaleej Times)

Sri Lanka stepped up its overseas investor outreach this month, taking its capital markets pitch to the United Arab Emirates and Saudi Arabia as it seeks to convert macroeconomic stabilisation into sustained foreign inflows after years of crisis.

At a series of ‘Invest Sri Lanka’ investor forums in Dubai and Riyadh, senior policymakers and market regulators sought to reassure Middle Eastern bankers and institutional investors that the island nation’s recovery remains intact despite recent shocks, and that reforms under the IMF-backed programme are beginning to restore confidence.

As reported by The National, on the sidelines of meetings with senior UAE bankers in Dubai, Central Bank Governor Nandalal Weerasinghe said Sri Lanka was in a stronger position than before the crisis that culminated in a sovereign default in 2022.

“We want to convey that Sri Lanka is open for business, ask the banking community that was doing a lot of business with Sri Lankan banks earlier to engage again,” Dr. Weerasinghe said.

“The year 2026 is a year of rebuilding and reconstruction. We would like UAE banks to be part of Sri Lanka’s recovery that is steady despite the shock we had in December when Cyclone Ditwah hit our country.”

Sri Lanka is currently under a US$ 3 billion IMF bailout programme, with a debt restructuring deal expected to reopen bilateral financing channels and revive foreign-funded projects that were halted during the default. Officials say this has helped anchor inflation expectations, stabilise the currency and restore a degree of policy predictability.

The ‘Invest Sri Lanka’ forums in the Middle East also came against the backdrop of Cyclone Ditwah, which struck Sri Lanka in December, that took the lives of more than 600 people and causing damage estimated in the billions of dollars, with large sections of transport and public infrastructure affected. Officials told investors that reconstruction would require both public and private capital, creating new opportunities alongside traditional sectors

Deputy Minister of Industry and Entrepreneurship Chathuranga Abeysinghe said there was “great opportunity” for Middle Eastern investors across multiple sectors, including tourism, information technology, minerals, agriculture and renewable energy.

Urging investors to reassess Sri Lanka, he pointed to manufacturing capacity, anti-corruption reforms and the digitalisation of public sector processes.

“If you had different views about us before, I think now it’s time to relook at us. I would like you to come for a few days to Sri Lanka and experience the vibe. People are very hopeful.”

Abeysinghe also acknowledged that systemic corruption and fiscal indiscipline under previous administrations had been at the root of the crisis, underscoring the government’s push to position current reforms as structural rather than cosmetic.

The outreach continued in Riyadh, where a high-level delegation led by Governor Weerasinghe engaged Saudi investors and financial institutions, with a sharper focus on capital market opportunities.

The delegation included Securities and Exchange Commission (SEC) Chairman Senior Prof. D.B.P.H. Dissabandara, Colombo Stock Exchange Chairman Ray Abeywardena and CSE Chief Executive Officer Rajeeva Bandaranaike, who were available at the forum to provide details on market reforms, listings and regulatory safeguards.