The economy has stabilized following the challenges of 2022.

Sri Lanka’s economy has regained its normalcy to a greater extent within a shorter period, as a result of transparent and robust measures undertaken by the Central Bank and the Government, with the support of public and private stakeholders as well as international agencies and our creditors. Sri Lanka reported 5% growth in GDP for 2024, marking a significant recovery from economic setbacks in 2022 and 2023. The expansion was driven by increased export and import volumes, higher container handling at Sri Lankan ports, and a stabilized foreign exchange rate. Leading indicators signal that this growth momentum is set to continue, underpinned by strong macroeconomic fundamentals. The government is committed to continue with the IMF program to further improve the economic climate.

The government of Sri Lanka has undertaken a series of measures to restore business confidence in Sri Lanka and encourage foreign investment.

Sri Lanka has a strong anti-corruption stance and assures transparency in business and investment. The country is also committed to reduce bureaucratic hurdles to investment, including through digitalization and increasing the competitiveness of the economy. Key pieces of legislations related to public financial management, public debt management, and anti-corruption have been enacted recently, which are pivotal to strengthen prudent management of public finance and debt, transparency and accountability.

Sri Lanka has many positive attributes that German companies are looking for.

Sri Lanka remains committed to international sustainability standards of green economy, strong labour rights, and is one of the most ethical sourcing destinations. The apparel industry, Sri Lanka’s largest export to the EU region, has earned the reputation of garments without guilt.

Sri Lanka has invested in its people resulting in a skilled workforce.

Many foreign and local companies report a strong worker commitment to excellence in Sri Lanka, with rapid adaptation to quality standards. Amongst the countries in the South Asian region, Sri Lanka is a pioneer in introducing progressive education reforms such as free school education up to the university level. Sri Lanka’s education system has produced a wide array of economic and social benefits in Sri Lanka, including higher human capital and earnings, and social mobility. Free education up to university level by the state results in approx. 11,000 graduates annually in IT and Engineering.

Sri Lanka as a reliable member of the international community.

As an island nation in South Asia, Sri Lanka is committed to extending her fullest support in ensuring the security of the Indian Ocean region and maintaining a peaceful maritime environment. We uphold a free and open Indo-Pacific, encompassing maritime safety and security.

Sri Lanka is located strategically in South Asia

Sri Lanka’s proximity to the Indian sub-continent positions the country as a gateway to a market of 1.9 billion people in South Asia. Sri Lanka provides great opportunities to enter into free trade and partnership agreements with several Asia’s trade powerhouses.