Business
Public investment for closing the SDG financing gap: Sri Lankan perspective
A new IPS study highlights the critical role of public investment in achieving Sustainable Development Goals (SDGs) in Sri Lanka.
The study reveals that bridging the SDG financing gap is vital, with an estimated additional investment requirement of USD 1.4 trillion, equivalent to 12.5% of GDP by 2030.
Policymakers must create an enabling environment for public and private investment, emphasising macroeconomic stability, transparency, and innovative financing strategies for SDG progress.

Dr Lakmini Fernando
Sri Lanka, like many nations, grapples with the challenge of bridging the gap between aspirations and resources to achieve the United Nations’ 2030 Agenda for Sustainable Development. A new study conducted by the Institute of Policy Studies of Sri Lanka (IPS) delves into this issue, highlighting the pivotal role of public investment in driving progress toward Sustainable Development Goals (SDGs) while emphasising the urgent need for financial strategies.
The study titled ‘Public Investment for Closing the SDG Financing Gap: Sri Lankan Perspective’ by IPS Research Fellow Dr Lakmini Fernando sheds light on the significant role of public investment in not only supporting the development process but also encouraging private investment. Given the dearth of systemic research on this nexus, the study highlights the importance of assessing the investment gap in SDG financing to enhance governments’ financial readiness. The study emphasises that a comprehensive fiscal needs assessment for SDGs is crucial for effective planning and budgeting at the country level. This report aims to contribute significantly to the existing literature on SDG-related research. The key findings of the study are highlighted below.
Key Findings:
The Investment Gap: To achieve key SDGs, emerging market economies (EMEs) need to allocate an additional 4% of their gross domestic product (GDP), while low-income countries (LICs) require a significant 15%. In Sri Lanka, the estimated additional investment requirement for SDGs by 2030 is approximately USD 1.4 trillion (Tn) or 12.5% of GDP, emphasising the critical need for securing additional funds. On average, Sri Lanka’s public investment is around 5-7% of GDP over the last decade, hence, the allocation of additional funds for SDGs is challenging.
Imbalanced Investment: Sri Lanka’s public investment allocation has been skewed toward infrastructure development, leading to disparities in sectors like education and technology/information communication technology (ICT). These imbalances pose challenges to meeting the development goals set by the 2030 Agenda.
The Role of the Public Sector: Bridging the investment gap cannot rely solely on the public sector; private sector participation is essential. Policymakers play a crucial role in creating a conducive investment climate, emphasising the need for macroeconomic stability, transparency, accountability and enhanced institutional quality.
Innovative Financing: The study highlights the significance of both traditional and non-traditional financing methods for SDG progress. Tax reforms, blended finance for SDG infrastructure, international tax reforms, and other strategies are discussed as potential means to mobilise financial resources for the SDGs.
Recommendations:
The study suggests several key recommendations to ensure the successful achievement of the 2030 Agenda in Sri Lanka:
Foresight Planning: Utilise the SDG framework as a tool to review and adjust sectoral investments, fostering a balanced approach.
Long-Term Targets: Extend short- and medium-term targets to long-term goals, aligning national objectives with the SDGs.
Domestic Resource Mobilisation: Strengthen domestic revenue collection to enhance financial readiness for SDG implementation.
Innovative Financing: Explore various innovative financing options and promote international cooperation in funding SDG initiatives.
Public-Private Partnership: Foster an enabling business environment through macroeconomic management, governance improvements, and the selection of productive projects.
Access the full policy discussion brief here: https://bit.ly/40Zhdhm
Business
Saudi Vision 2030 offers new economic opportunities for Sri Lanka
By Ifham Nizam
Saudi Arabia’s Vision 2030 is creating opportunities for Sri Lanka in trade, investment, renewable energy, tourism and employment while strengthening the longstanding friendship between the two countries.
Led by King Salman bin Abdulaziz Al Saud and Crown Prince and Prime Minister Mohammed bin Salman, the programme aims to diversify Saudi Arabia’s economy, attract international investment, develop new industries and reduce dependence on oil revenues.
Launched in 2016, Vision 2030 is built around three pillars: a vibrant society, a thriving economy and an ambitious nation. Its focus on tourism, technology, logistics, renewable energy, industrial development and private-sector growth aligns with Sri Lanka’s need for foreign investment, stronger exports, energy security and sustainable employment.
Trade and investment opportunities
The establishment of the first Saudi–Sri Lanka Joint Business Council in November 2025 created a platform for businesses to identify investment opportunities, develop partnerships and address trade barriers. Saudi participation in Sri Lanka Expo 2027 could further strengthen commercial ties.
Sri Lanka can expand exports of value-added tea, spices, apparel, rubber products and processed foods to Saudi Arabia. Better distribution networks, packaging and compliance with market standards would help local producers, especially small and medium-sized enterprises, compete more effectively.
Saudi investors could explore Sri Lankan tourism, logistics, food processing, renewable energy and export-oriented manufacturing. The goal should be long-term partnerships that create jobs, transfer technology and improve productivity rather than simply increasing trade.
Renewable energy and green investment
Energy is another promising area. Saudi Arabia’s diversification programme includes major investments in renewable energy and emerging technologies. Partnerships in solar power, battery storage, electricity infrastructure and energy efficiency could help Sri Lanka reduce dependence on imported fossil fuels and improve energy security.
Cooperation could also include technical training and technology transfer. Saudi investment in sustainable tourism, modern agriculture, water management and infrastructure could create further opportunities if projects are commercially viable and supported by transparent regulations.
Vision 2030 seeks to make Saudi Arabia a major international tourism destination while improving services for pilgrims visiting Makkah and Madinah.
Sri Lanka could attract more Saudi visitors through better air connectivity, targeted marketing and partnerships with travel operators. Sri Lankan companies could also supply food, hospitality services and other products to Saudi Arabia’s expanding tourism sector.
Employment remains central to bilateral relations. Sri Lankan workers contribute to the Saudi economy, while their remittances provide valuable foreign exchange at home. As Saudi Arabia develops new industries, Sri Lanka can strengthen vocational training and skills-based recruitment in hospitality, healthcare, construction and technical services. Recognised qualifications, ethical recruitment and worker protection would benefit both countries.
Economic cooperation is complemented by Saudi Arabia’s distinctive spiritual role as custodian of Islam’s two holiest mosques.
Through the Custodian of the Two Holy Mosques’ Guests Programme for Hajj, Umrah and Visit, King Salman approved the hosting, at his personal expense, of 1,000 male and female Umrah performers from around the world in June 2026. Implemented by the Saudi Ministry of Islamic Affairs, Dawah and Guidance, the programme’s first group included 250 guests from 16 Asian countries, who visited Madinah and Makkah and took part in cultural and educational activities.
For those invited, performing Umrah and visiting the holy sites is a deeply meaningful religious experience. The initiative reflects Saudi Arabia’s commitment to facilitating worship and strengthening bonds among Muslim communities. It also complements Vision 2030’s Pilgrim Experience Programme, which aims to improve transport, accommodation, digital services and facilities for pilgrims.
This spiritual and cultural engagement adds a human dimension to commercial ties, helping deepen understanding between the two peoples.
Sri Lanka and Saudi Arabia established diplomatic relations in 1974, and their partnership has grown through trade, employment, development cooperation and diplomacy. The next step is to convert this goodwill into measurable results.
Sri Lanka needs a clear portfolio of viable projects, predictable regulations and efficient procedures to attract Saudi investment. Local businesses must be prepared to meet Saudi market requirements, while the Joint Business Council and Sri Lanka Expo 2027 can help connect investors and entrepreneurs.
The partnership should ultimately be judged by increased exports, productive investment, quality employment and the transfer of skills and technology.
Vision 2030 offers Sri Lanka an opportunity to build a more dynamic relationship with Saudi Arabia by combining commercial cooperation with diplomatic, spiritual and people-to-people ties. Together, the two countries can create lasting benefits for their economies and communities.
Business
LKR 3 billion HLAB fund launched to help Sri Lankan businesses scale
Hatch, Lankan Angel Network and BOV Capital join forces, with First Capital Holdings PLC committing LKR 300 million as anchor limited partner in a fund built on a commercial investment case.
Starting a business is difficult. Building one that can grow, compete and endure is harder still.
For Sri Lankan founders, the challenge doesn’t end when they prove their idea works. The next stage demands stronger operations, access to new markets and the capital to pursue opportunities that could transform a promising venture into a sustainable business.
A new initiative aims to help more founders take that next step.
Hatch, Lankan Angel Network (LAN) and BOV Capital have launched HLAB, a collective LKR 3 billion fund designed to back early and growth stage regional companies that are incorporated in Sri Lanka. Announced at the final event of First Capital Startup Nation, organised by Hatch, the initiative brings together three established participants in the country’s startup ecosystem around a shared ambition: expanding access to capital for businesses seeking to grow.
Adding institutional participation to the initiative, First Capital Holdings PLC has committed LKR 300 million as the fund’s anchor limited partner, representing 10% of its total size.
From promising startups to enduring businesses
The transition from an early stage venture to a sustainable, growing company is a defining point in a founder’s journey. Businesses must move beyond establishing their models and begin building the operational strength and market reach needed to pursue larger opportunities.
Business
JXG’s Wasanthi Stephen makes history as the first female recipient of the CIPM Sri Lanka Lifetime Gold Award
JXG (Janashakthi Group) celebrates Wasanthi Stephen, Group Chief Human Resources Officer, on becoming the first female recipient of the prestigious CIPM-Baurs Lifetime Gold Award 2026 from the Chartered Institute of Personnel Management (CIPM) Sri Lanka since the award’s inception. Presented on 14 October 2026, at the opening of the National Human Resource Conference (NHRC) 2026 at Monarch Imperial, Kotte, the award marks a historic milestone for Sri Lanka’s Human Resources profession and a proud moment for JXG.
The highest individual recognition in Sri Lanka’s Human Resource Management sphere, the CIPM Sri Lanka Lifetime Gold Award celebrates individuals whose long-standing contributions have advanced the HR profession at organisational, national, and international levels. It recognises professional excellence, ethical leadership, transformational impact, and a sustained commitment to people and institutions.
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