Foreign direct investment has not flowed into Sri Lanka at levels anticipated prior to the National People's Power taking office, Minister of Industry and Investment Promotion Sunil Handunnetti admitted.
Speaking on the Derana 360 television programme, the Minister said that securing current investment volumes under prevailing economic conditions remained a remarkable outcome.
He addressed critiques regarding the composition of capital inflows, following reports indicating that the majority of foreign direct investment recorded in 2025 represented reinvestment from existing operational entities rather than new ventures.
The Minister stated that the Opposition had built a widespread narrative predicting that foreign capital would flee the country under the current government.
He noted that critics had raised fears of punitive taxation and drawn comparisons to the Soviet Union and North Korea. Given that climate, retaining existing enterprise capital represented a significant victory for the government.
Responding to questions regarding two-year administrative delays in establishing an integrated single window facility for investors and enacting labor law reforms, the Minister acknowledged systemic hurdles.
He explained that integrating numerous state regulatory bodies into a unified portal remained a complex administrative task.
Handunetti also said that new operational models have already been deployed across key export sectors including apparel and tea.
The Ministry of Industry and Investment Promotion is currently coordinating an expedited framework with the Ministry of Finance and the Presidential Secretariat to streamline approval procedures for prospective foreign investors.
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