Location Advantage Market Access Agile Talent Quality of Life Competetive Sectors

Strategically positioned at the centre of key international trade routes, Sri Lanka is a country boosting connectivity and economic growth in the South Asian region. Sri Lanka is also located in proximity to India, opening the gateway to new business opportunities in a growing market of over 1.9 billion people.

Known as the “Pearl of the Indian Ocean,” Sri Lanka is also an island rich in valuable natural resources and natural attractions. The island has a long-standing history of gem, spice, and tea trading, and has earned an international reputation for its exquisite Ceylon tea blend.

Known as the “Pearl of the Indian Ocean,” Sri Lanka is also an island rich in valuable natural resources and natural attractions. The island has a long-standing history of gem, spice, and tea trading, and has earned an international reputation for its exquisite Ceylon tea blend.

Location Advantage

Sri Lanka is a fast-growing country strategically positioned in the Asian Pacific (APAC) region. The APAC region is home to 235 Fortune Global Companies which contribute to over 70% of the global GDP growth, giving Sri Lanka opportune market access to lucrative opportunities across international business and trade.

Economic Potential

A top performer in South Asia, Sri Lanka's economy is projected to grow by 5% in 2027. Investors can capitalise on this growth by leveraging the country's dynamic service sectors and access to world-class talent.

Developing Modern Economy

Sri Lanka’s positive growth trajectory has led to multi-sector economic diversification across multiple sectors such as tourism, textiles, information technology, telecommunications, and agriculture. The country’s economic diversification fosters region-wide growth and improves market access, enabling businesses to thrive and prosper with access to agile talent and quality resources.

Conduct business from a strategic Hub
  • The Colombo Port is ranked the best-performing port in South Asia (Maritime Transport Review, 2022) and 28th best port in the world (World Bank and S & P Market Intelligence, 2023)
  • Alphaliner publication has recognized Colombo Port as the world’s fastest-growing port in the first quarter of 2024 due to its remarkable operational performance and 23.6% growth rate
  • The Sri Lanka Ports Authority expects total throughput at the Colombo Port to surpass 9 million Twenty-foot Equivalent Units (TEUs) during 2025, comfortably surpassing the historic throughput figures of 7.8 million TEUs recorded in 2024.
  • Four international airports and two high-performance seaports
Tap into agile talent resources
  • 92% regional literacy rate
  • 40,677 graduates from government universities in 2022
Gain wide market access
  • Sri Lanka operates over 7,000 zero-duty tariff lines to 27 EU countries
  • Duty-free product exports to India and Pakistan, where consumer markets exceed $850 Billion
Enjoy a high quality of life
  • 0.60 Human Capital Index Score in 2022
  • Ranked #3 for health and security in South Asia
  • 9th Friendliest Country in the World
  • Historic Cultural Heritage, National Parks and the 8th Wonder of the World.
  • World Class domestics and commercial, healthcare, real estate and high-end leisure activities

Compound Annual Growth Rates (CAGR)

Sri Lanka’s key thrust sectors including finance and banking, information technology, and tourism and hospitality are highly-functional and contribute significantly to the country’s economic growth.

15.75%

Banking Sector CAGR
(2024-2028)

11.94%

ICT Sector CAGR
(2024-2028)

5.16%

Tourist Sector CAGR
(2024-2028)

$1.5 Billion

All-Time High Export Sector Valuation in January 2024

Competitive Sectors

Business

Sri Lanka offers international investors a well-protected investment environment for secure and profitable business investments. Aspiring investors can look forward to growing their assets fully supported by investor-friendly legal structures, strong political frameworks, and bilateral ties with major regional countries in Sri Lanka.

  • Ranked #6 in the Global Innovation Index in Central and South Asia
  • Foreign reserves projected to reach $5.4 Billion by 2024 end
  • Exports projected to reach $31.3 Billion by 2027
  • Centralised financial governance fortified by Banking (Special Provisions) Act, No.17, 2023
  • 11 ongoing free trade agreements with regional fast-growing economies like India, Pakistan, Singapore, and Thailand

Manufacturing and IT

Sri Lanka’s ever-evolving manufacturing and IT sectors have led to large-scale economic diversification, high-value sector prioritisation, and global-scale manufacture of specialised products, creating a host of new business opportunities.

  • $3 Billion estimated revenue in 2024
  • 1st country in South Asia to trial 5G mobile technology
  • 100% country coverage for network APIs through GSMA Open Gateway Initiative
  • 65,000 km fibre network for fixed broadband and mobile services
  • #12 in the APAC region and #80 globally for network readiness

Tourism and Hospitality

Sri Lanka is a top performer in tourism on the global charts, famous for its pristine beaches, cultural cities, and world heritage sites. The country’s strategic vision focuses on creating diverse and authentic island experiences for visitors, boosting its tourism revenue prospects.

  • Voted in the ‘Top 20 Most Favourite Destinations’ by Conde Nasté Traveler
  • Ranked #4 in ‘Best Solo Destinations’ by Forbes
  • Ranked #8 in ‘50 Most Instagrammable Places in the World’ by Big 7 Travel
  • Hospitality is projected to grow at a CAGR of 7.5% (2024-2029)
  • Projected target foreign exchange earnings of $5 Billion by 2025
  • 40% of the PCC Gross Floor Area is allocated for the hospitality sector
  • Five high-capacity international hotel and resort spaces proposed for PCC

Agile Talent

Sri Lanka’s Human Capital isHighly skiled, versatile, and accessible across multiple high-performing sectors.

  • 1.4% of population are between the ages of 20 and 30 (Economic and Social Commission for Asia and the Pacific, 2024)
  • Workforce primarily present in the service sector (Sri Lanka Labour Force Statistics, 2022)
  • 8.5 million labour pool (Sri Lanka Labour Force Statistics, 2022)
  • Well-established free education system (National Education Policy Framework, 2022)
  • 92% regional literacy rate (Macrotrends, 2023)
  • 40,677 graduates from government universities (University Grants Commission, 2022)
  • Ranked among the top 28 countries for high human development (Global Knowledge Index, 2023)

In Sri Lanka, investors have the unique opportunity to tap into a fast-developing start-up ecosystem, with access to a low-cost talent pool and new technology parks.

  • Sri Lanka is an emerging South Asian IT destination. Recognising its talent potential, over 600 globally-recognised companies source their tech talent here.
  • The Ministry of Technology has commissioned five technology parks with advanced infrastructural and incubator facilities to power aspiring startups.

Future-Focused Business

Combining cutting-edge technology with the latest infrastructure developments, Sri Lanka’s business and information technology sector creates a one-of-a-kind environment for businesses to grow, prosper, and thrive.

Thriving IT Sector

  • Sri Lanka ranked as the #4 Global Ecosystem for the ability to hire tech talent
  • 29% year-on-year startup ecosystem growth since 2018
  • Ranked #1 Asian Ecosystem in Affordable Talent
  • 1,000 projected startups in Sri Lanka by 2025
  • Multinational IT companies operating in Sri Lanka offer incubator programmes and graduate upskilling services

Enhancing Regional Connectivity

  • Sri Lanka is directly connected to more than 45 global destinations
  • Outbound travellers can reach top South Asian destinations within 2-4 hours
  • Sri Lankan airports tracked approximately 7,558,535 passenger movements in 2023
  • Colombo International Container Terminals (CICT) handled approximately four Million TEUs of cargo in 2023
  • Sri Lanka is positioned along three major global shipping routes

Quality of Life

Sri Lanka is a popular tourist destination recognised for its rich cultural heritage and unique natural beauty. The country is ranked 18 among the best countries in the world in the 2023 Reader’s Choice Awards (Conde Nast Traveller, 2024) and also ranked 9 in best places to visit in Asia (U.S. News & World Report, 2023).

For those looking to work, live in, or visit the country, Sri Lanka offers authentic lifestyle experiences rooted in traditional culture. In Colombo, Sri Lanka’s capital, you can explore an exciting cosmopolitan life with luxury fine dining and entertainment options.

The country also has a score of 0.60 in the Human Capital Index 2022 (World Bank, 2023) and is ranked #3 for health and security in South Asia (GHS Index, 2021), indicating a favourable quality of life. Here, you can set base while ensuring quick and easy access to primary facilities in healthcare and education.