Business
Attracting foreign real estate investments amidst the economic turbulence in Sri Lanka
By Rohan Parikh
From the COVID-19 pandemic to its current economic turbulence, Sri Lanka has tackled many challenges thrown at them with resilience. Today however, Sri Lanka is under tremendous unrest and pressure and faces a challenging macroeconomic situation today. There are a bunch of contradicting factors that need to be mitigated – and this will require some difficult decisions. One of the things that can change the fortunes of Sri Lanka is foreign investments.
The role of foreign real estate investment
By its nature, the construction industry opens many opportunities for a foreign investor to consider a country as the ideal spot for their investment. Real estate is an infrastructure asset that adds to the wealth and asset base of the nation. It enables the creation of a stable middle class and secure working class.
Nearly 3/4th of construction sites in Sri Lanka are currently halted due to varying reasons: ever-rising cost of raw materials, unavailability of essential goods due to import restrictions, ongoing forex crisis and more. This has dealt a massive blow to the labour market as construction sites employ large numbers of labourers. It has also impacted many local suppliers of the hundreds of items needed for construction from doors, windows, steel, locks, tiles, glass, wood, and more. Thus it is critical to get the real estate industry moving again. To achieve this, it will be critical to make Sri Lanka an attractive destination for foreign investment.
Tools of change that the leaders of the nation have in their belt
Financial incentives:
Now, more than ever, it is critical that foreign investment in real estate be tax exempt. This exemption was mistakenly removed several years ago, at a time when taxes on domestic industries were disastrously slashed. The lack of tax benefits to foreign investors led to a slowdown in future projects funded by foreign exchange and impacted forex inflows.
Simultaneously, the tax cut on local companies led to a draining of the state budget. It left the country extremely vulnerable to a shock like COVID. Today, we hope that strong financial incentives are put in place to attract foreign investors back to Lanka. Without these, markets like India, Pakistan, Thailand, and Dubai will always seem like better avenues for investment.
Policy clarity:
It is important for foreign investors to perceive the country as having a stable regulatory environment. The period from 2016 to 2018 saw a lot of sudden changes in policy and processes that resulted in a great amount of uncertainty and trepidation amongst foreign investors. This needs to be avoided during any change of administration as it does long term damage to the country’s reputation amongst investors. Just as an example, the rule on VAT and NBT was changed 3 times in the space of a year during that period.
Protection of investors: A foreign investor must be made to feel welcome and safe. Despite the efforts of an overwhelming majority of forward thinking leaders and bureaucrats, a small minority can do a lot of damage.
In my own case, we were hounded and harassed by some politicians without cause, and were slandered in an extremely unfair and untrue attack by local media. We were attacked for being a foreign company and we lost a lot of business due to this slander. This frightened our staff and made many of our investors decide not to invest in Sri Lanka again. In the same breath, I am also happy to report that in the end, the legal system in Sri Lanka came to our rescue and the courts passed an order protecting us. We survived, shaken but still resolute in our commitment to Sri Lanka. Unfortunately, not all foreign investors have that kind of resolve, especially when there are other markets that offer more welcoming access. The need here is to empower the Board of Investment with real powers to tackle such roadblocks and to protect foreign investors.
I have been investing in Sri Lanka for over 15 years now. We were the first company to invest in Sri Lanka once the war ended. I have seen the resolve and strength of the nation and I am confident that this crisis will pass. I hope that we are able to learn from the crisis and come back better and stronger.
The Central Bank of Sri Lanka today (07) presented its flagship publication, the Annual Economic Review for 2024 (AER 2024), to President and Minister of Finance, Anura Kumara Disanayake, highlighting the steady progress of Sri Lanka’s economic recovery following the country’s most severe downturn in recent history.
The report was officially handed over by Dr. P. Nandalal Weerasinghe, Governor of the Central Bank, during a special ceremony held at the Presidential Secretariat.
AER 2024 comprises four main chapters: Macroeconomic Developments, Conditions of the Financial System, Review of Central Bank’s Policies and Macroeconomic Outlook.
According to the Review, the Sri Lankan economy showed significant signs of recovery in 2024, following the deep economic crisis experienced two years ago. The recovery trajectory, though challenging, has been notably faster than that of many other debt-distressed countries.
Improvements in economic activity, a partial resurgence in purchasing power and reduced uncertainty are among the key positive indicators noted in the report.
The event was attended by Dr. Nandika Sanath Kumanayake, Secretary to the President, K. M. Mahinda Siriwardena, Secretary to the Treasury, Mrs. K. M. A. N. Daulagala, Senior Deputy Governor, Dr. C. Amarasekara, Assistant Governor, Dr. (Mrs.) S. Jegajeevan, Director of Economic Research and Dr. L. R. C. Pathberiya and Additional Director of Economic Research at the Central Bank Dr. V. D. Wickramarachchi.
[PMD]
Business
IceWarp expands into Sri Lanka, fostering European innovation in collaboration with FentonsIT
IceWarp, a global leader in business communication solutions, has officially launched its cutting-edge platform in Sri Lanka, bringing European expertise in email and collaboration solutions to support the country’s evolving business landscape.
This expansion is driven by a strategic partnership with Fentons Information Technology (FIT), the Information Technology arm of Hayleys Fentons Limited.
The grand launch event held at The Kingsbury Colombo on 4th April, 2025, was graced by several distinguished guests, including Chief Guest Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC.
The presence of Adam Paclt, Global CEO of IceWarp, and Pramod Sharda, CEO for India and the Middle East of IceWarp, along with their global team, highlighted the significance of this expansion. Industry experts, government officials, corporate leaders, and CIOs from the banking, financial services and insurance sectors were in attendance as well, reflecting strong local interest in IceWarp’s European expertise.
With this launch, Sri Lankan businesses now have access to an affordable, scalable and secure alternative to Microsoft 365 and Google Workspace. IceWarp’s advanced Collaboration Suite integrates a wide range of tools into a single, unified platform designed to streamline communication and boost productivity. Offering flexible hybrid deployment options and cost-efficient solution, IceWarp enables organisations to optimise their operations without compromising security or functionality.
Eventistry Sports, a trailblazer in innovative sporting events, has unveiled the Sri Lanka Padel League (SLPL), the nation’s first franchise-based padel tournament, set to debut in June 2025. This groundbreaking league promises to redefine Sri Lanka’s sports landscape by creating a dynamic national platform for athletes while fostering unity among fans, brands, and communities.
The SLPL will showcase six franchise teams, each embodying the spirit of iconic Sri Lankan locales: the Colombo Chargers, Yala Rangers, Hikkaduwa Riders, Ella Hawks, Arugambay Vipers, and Trinco Warriors. These teams will not only ignite regional pride but also unite the country through a shared passion for padel—a fast-paced racquet sport merging tennis and squash, played on enclosed courts.
“The SLPL is more than a league; it’s a movement,” declared Karin Wijeratne, Director of Eventistry Sports. “By blending franchise sports with Sri Lanka’s vibrant culture, we’re creating a platform where players gain national recognition, fans rally behind their hometown heroes, and brands engage with communities in meaningful ways.”
The league’s launch on June 21–23, 2025, at Colombo’s Padel House courts (CR&FC) will kick off with three days of high-octane matches, preceded by a star-studded player auction on May 16th at The Vault, Colombo City Centre. Local talent—both professional and intermediate—will be drafted by franchise owners, with international registrations now open to elevate the competition’s global appeal.
Please log in to: www.slpadelleague.com and social media: @SriLankaPadelLeague (Facebook & Instagram) for more information.
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