The Governor of the Western Province and Presidential Special Envoy for Foreign Investment, Hanif Yusoof, appeared on Channel News Asia today to discuss Sri Lanka's strategic positioning as the premier gateway to South Asia for international investors and businesses.
Strategic Geographic Advantage
During the live interview, Governor Yusoof emphasized Sri Lanka's unique geographic location at the crossroads of major shipping routes connecting Europe, Asia, and the Middle East. The island nation's position in the Indian Ocean provides unparalleled access to South Asian markets, making it an ideal hub for multinational corporations seeking regional expansion.
The Western Province Governor highlighted how Sri Lanka's proximity to India, with its 1.4 billion population, combined with access to other South Asian markets including Bangladesh, Pakistan, and the Maldives, creates compelling opportunities for foreign investors. This strategic location offers companies the ability to serve over 2 billion consumers across the region from a single operational base.
Investment Climate and Economic Recovery
Yusoof addressed Sri Lanka's ongoing economic recovery efforts and the government's commitment to creating a favorable investment environment. He outlined recent policy reforms designed to streamline foreign investment processes, reduce bureaucratic barriers, and provide attractive incentives for international businesses.
The Presidential Special Envoy for Foreign Investment detailed how Sri Lanka's skilled workforce, competitive labor costs, and English-speaking population provide additional advantages for companies considering regional headquarters or manufacturing operations. These factors, combined with the country's improving infrastructure, position Sri Lanka as an attractive alternative to other regional hubs.
Infrastructure Development Initiatives
During the CNA interview, Governor Yusoof discussed ongoing infrastructure projects that enhance Sri Lanka's gateway capabilities. The Colombo Port City development, expansion of Bandaranaike International Airport, and improvements to the national highway network were highlighted as key initiatives supporting the country's strategic positioning.
The Western Province, which includes the commercial capital Colombo, serves as the primary entry point for foreign investment. Yusoof explained how the province's advanced infrastructure, including modern ports, airports, and telecommunications networks, provides the foundation for Sri Lanka's role as a regional business hub.
Sector-Specific Opportunities
The Governor identified several key sectors where Sri Lanka offers particular advantages as a South Asian gateway. Information technology and business process outsourcing represent major growth areas, with the country's tech-savvy workforce and competitive costs attracting global companies.
Manufacturing, particularly in textiles, pharmaceuticals, and electronics, benefits from Sri Lanka's trade agreements and preferential access to major markets including the European Union and the United States. These advantages, combined with the country's strategic location, make it an attractive production base for companies serving both regional and global markets.
Tourism and hospitality sectors were also highlighted, with Sri Lanka's natural beauty, cultural heritage, and improving infrastructure positioning the country as a premium destination that can serve as a base for exploring the broader South Asian region.
Government Support and Policy Framework
Yusoof outlined the government's comprehensive approach to supporting foreign investment, including the establishment of one-stop service centers, digital approval processes, and dedicated support for large-scale projects. The Board of Investment of Sri Lanka has been restructured to provide more efficient services and faster approvals for qualified investors.
Tax incentives, including reduced corporate tax rates for qualifying investments and exemptions for specific sectors, were presented as part of the attractive policy framework. The Governor emphasized the government's commitment to maintaining policy consistency and providing long-term stability for foreign investors.
Regional Connectivity and Trade Relations
The interview covered Sri Lanka's improving trade relations with regional partners and its role in South Asian economic integration. The country's membership in regional trade agreements and its efforts to strengthen bilateral economic partnerships enhance its value as a gateway to the broader South Asian market.
Governor Yusoof discussed plans for enhanced connectivity with India through improved air and sea links, as well as potential infrastructure projects that would further strengthen Sri Lanka's position as a regional hub. These developments are expected to reduce logistics costs and improve market access for companies operating from Sri Lankan bases.
Future Outlook and Investment Targets
Looking ahead, the Presidential Special Envoy outlined ambitious targets for foreign direct investment attraction, with particular focus on technology, manufacturing, and service sectors. The government aims to position Sri Lanka among the top investment destinations in South Asia within the next five years.
The CNA interview concluded with Governor Yusoof's invitation to international investors to explore Sri Lanka's potential as their South Asian gateway, emphasizing the country's commitment to supporting successful business operations and regional expansion strategies.