News and insights
05 March 2026
Expert panel diagnoses why SL misses FDI
Expert panel diagnoses why SL misses FDI Thursday, 5 March 2026 05:35 - - 146 Aditya Birla Group’s $ 50 b investment portfolio manager Sarath Sathkumara says recent analysis shows only five of top 25 companies consistently made returns above cost of capital Says private sector needs to be more attractive because tax incentives not a differentiator for FDI Deloitte Sri Lanka and Maldives Head of Financial Advisory Ruvini Fernando says Sri Lanka needs entire ecosystem, not just tax incentives, for FDI Ceylon Chamber of Commerce Chief Economic Policy Adviser Shiran Fernando flags lack of instructional, professional capacity to negotiate FTAs QZ&WD (Jiangxi) Partner Mengni Romanee Luo says China’s evolving investment strategy could create opportunities for Sri Lanka, Chinese companies have high regard for Sri Lanka Amundsen Davis (USA) Partner Ngosong Fonkem says smaller economies with stable legal systems and competitive labour markets can create opportunities to become intermediate production hubs Event by Sudath Perera Associates brings together legal, economic and finance experts from India, China and US to discuss global trade risks and opportunities Sri Lanka’s weak foreign direct investment (FDI) performance reflects not only policy shortcomings but also the failure of parts of the private sector to generate competitive returns, according to Aditya Birla Sun Life AMC Ltd., Chief Investment Officer – International Sarath Sathkumara, who oversees a $ 50 billion investment portfolio. Speaking at a symposium titled “Trade in turbulent times: Geopolitical challenges and opportunities from Sri Lanka’s perspective,” organised in Colombo on Tuesday by law firm Sudath Perera Associates, Sathkumara said Sri Lanka’s corporate sector must accept part of the responsibility for the country’s limited success in attracting sustained international investment. “After reviewing the top 25 companies, we found that only about five Sri Lankan firms were consistently generating returns above their cost of capital,” he said. “In fact, only those few companies were truly attractive from an investment standpoint. Many other companies have not delivered meaningful returns to shareholders for nearly two decades.” Unless businesses generate returns above their cost of capital, international investors will deploy funds elsewhere, he said. “One thing I often hear when people discuss Sri Lanka’s economic future is the need for tax breaks. But tax incentives are not a differentiator. Every country offers them. They do not make an economy competitive,” he said. “What really matters is responsibility, discipline, and performance. In that respect, Sri Lanka’s private sector must also accept part of the responsibility for where the country is today.” Despite economic stabilisation efforts following the 2022 sovereign default, Sri Lanka continues to attract modest levels of foreign investment. Annual inflows remain just over $ 1 billion, roughly 1% of GDP. This is significantly below the 3% to 4% of GDP commonly seen in competing emerging economies. The combination of post-default credit ratings, structural policy weaknesses, and weak corporate returns has prevented Sri Lanka from converting its strategic location and skilled workforce into sustained capital inflows. Drawing comparisons with India’s 1991 balance-of-payments crisis, Sathkumara said structural reforms can eventually transform an economy but require sustained discipline from both policymakers and businesses. He noted that smaller economies now face greater competition for investment because large markets such as India benefit from scale advantages in labour, energy, and technology. Sri Lanka should therefore focus on sectors where it has clear comparative advantages. Tourism represents one such opportunity, particularly given the scale of India’s outbound travel market. “India has a population of 1.4 billion people. If even a small percentage travels abroad, the potential market is enormous. Sri Lanka should actively attract visitors from India’s major cities,” Sathkumara said. Manufacturing partnerships linked to India’s industrial hubs, particularly around Chennai, could also allow Sri Lankan companies to integrate into regional supply chains. Technology services represent another area of potential growth given Sri Lanka’s skilled workforce and proximity to India’s expanding IT sector. However, Sathkumara said stronger connectivity will be essential if Sri Lanka is to capture these opportunities. “One major weakness is the airline sector. What the country needs is a strong and financially healthy airline capable of connecting Sri Lanka with multiple cities across India,” he said. Deloitte Sri Lanka and Maldives Head of Financial Advisory Ruvini Fernando said Sri Lanka’s modest FDI performance also reflects deeper structural constraints. FDI inflows reached just over $ 1 billion in 2025. While that represents an improvement compared with earlier years, it remains modest relative to competing economies. “In many emerging markets, FDI amounts to around 3% to 4% of GDP. In Sri Lanka, the figure remains closer to 1%,” she said. For a small economy, she noted, investment aimed primarily at serving the domestic market is unlikely to generate sustained growth. “Investors must come to Sri Lanka not simply to sell into the local market but to produce and export.” While Sri Lanka has introduced incentives across sectors such as agriculture, manufacturing, and services, Fernando said incentives alone rarely determine investment decisions. “Tax incentives by themselves are not enough. A whole ecosystem must function effectively.” Among the factors most frequently cited by investors are the availability of skilled labour, access to industrial land, efficient logistics, and streamlined trade procedures. Export-oriented industries also depend heavily on imported inputs, making trade policy and free trade agreements (FTAs) central to investment decisions. “FTAs allow firms not only to sell to export markets but also to import raw materials and intermediate goods at competitive costs,” Fernando said. The Ceylon Chamber of Commerce Chief Economic Policy Adviser Shiran Fernando said Sri Lanka must also strengthen its trade policy framework if it is to respond effectively to a changing global environment. After emerging from the economic crisis, the country has faced additional external shocks, including tariff changes and geopolitical tensions affecting global trade. “These shocks highlight how exposed smaller economies are to global disruptions,” he said. Sri Lanka’s export base remains concentrated in a limited number of markets, leaving exporters vulnerable when policy changes occur in major economies. Diversifying export markets and strengthening trade partnerships will therefore be critical. Although Sri Lanka entered trade agreements earlier than some Southeast Asian economies, countries such as Thailand and Vietnam expanded their networks significantly over the past two decades while Sri Lanka’s progress slowed. Fernando also emphasised the need to build stronger institutional capacity to negotiate and manage trade agreements. “Successful trade negotiations are conducted by specialised teams supported by technical expertise and research,” he said. “In Sri Lanka, trade agreements have often been handled in a less structured way.” Global trade tensions are also reshaping supply chains, creating potential opportunities for smaller economies. Amundsen Davis LLC Partner Ngosong Fonkem said tariffs and geopolitical disputes between major economies have forced multinational firms to restructure production networks. Companies are increasingly relocating parts of their manufacturing operations to alternative countries in order to reduce exposure to trade restrictions. “For smaller economies with stable legal systems and competitive labour markets, these shifts can create opportunities to become intermediate production hubs,” he said. QZ&WD (Jiangxi) Law Firm Partner Mengni Romanee Luo said China’s evolving investment strategy could also create opportunities for Sri Lanka. China’s outbound investment reached approximately $ 174 billion in 2025, reflecting continued engagement with global markets despite geopolitical uncertainty. China is diversifying trade partnerships, expanding regional agreements, and further opening its manufacturing sector to foreign investment. Although Sri Lanka is not part of the Regional Comprehensive Economic Partnership, Luo said regional supply chains linked to Chinese companies could still generate opportunities through partnerships with Sri Lankan firms. “Companies I’ve spoken to in China say they would love to do business with Sri Lanka,” she said, stressing the country’s reputation for professionalism and trustworthiness was favourable with corporate China. Sri Lanka’s strategic location along major maritime trade routes also positions the country as a potential hub for logistics, manufacturing, and services connected to regional trade flows. Opening the event, Sudath Perera Associates Founding Partner Sudath Perera said the discussion was taking place at a time when the global economy is undergoing rapid change. “We are meeting at a time of considerable turbulence in the global economy,” he said. “The international landscape is shifting quickly, rules are evolving and risks are increasingly interconnected. Decisions taken in Colombo today are influenced more than ever by developments across global markets.” However, he said such periods of uncertainty can also create opportunities. “This evening is not only about uncertainty. It is also about perspective and possibility,” Perera said. Countries and businesses that are credible, adaptable, and forward-looking can benefit from global shifts in trade and investment patterns, he added. For Sri Lanka to do so, he said, the country must present itself as a reliable and competitive destination for international business through consistent policies, strong institutions, and deeper engagement with global markets. - Pix by Sameera Wijesinghe
27 February 2026
𝗦𝗨𝗗𝗔𝗧𝗛 𝗣𝗘𝗥𝗘𝗥𝗔 𝗔𝗦𝗦𝗢𝗖𝗜𝗔𝗧𝗘𝗦 is pleased to be organising an exclusive forum & networking event on ‘𝗧𝗿𝗮𝗱𝗲 𝗶𝗻 𝗧𝘂𝗿𝗯𝘂𝗹𝗲𝗻𝘁 𝗧𝗶𝗺𝗲𝘀: 𝗚𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗻𝗱 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗿𝗼𝗺 𝗦𝗿𝗶 𝗟𝗮𝗻𝗸𝗮’𝘀 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲’ on Tuesday, 3 March 2026, in Colombo.
𝗦𝗨𝗗𝗔𝗧𝗛 𝗣𝗘𝗥𝗘𝗥𝗔 𝗔𝗦𝗦𝗢𝗖𝗜𝗔𝗧𝗘𝗦 is pleased to be organising an exclusive forum & networking event on '𝗧𝗿𝗮𝗱𝗲 𝗶𝗻 𝗧𝘂𝗿𝗯𝘂𝗹𝗲𝗻𝘁 𝗧𝗶𝗺𝗲𝘀: 𝗚𝗲𝗼𝗽𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗻𝗱 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗳𝗿𝗼𝗺 𝗦𝗿𝗶 𝗟𝗮𝗻𝗸𝗮’𝘀 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲' on Tuesday, 3 March 2026, in Colombo. Against a backdrop of heightened geopolitical tensions, evolving tariff regimes, sanctions frameworks, and shifting global supply chains, this forum will examine the practical implications for Sri Lankan businesses, and the opportunities that may emerge amid volatility. We are privileged to feature presentations by: • Ngosong Fonkem, Partner, Amundsen Davis LLC (USA) – 𝗨𝗦 𝗧𝗿𝗮𝗱𝗲 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 • Romanee Luo, Partner, QZ&WD (Jiangxi) Law Firm – 𝗖𝗵𝗶𝗻𝗮 𝗧𝗿𝗮𝗱𝗲 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗧𝗵𝗲 𝗺𝗼𝗱𝗲𝗿𝗮𝘁𝗲𝗱 𝗽𝗮𝗻𝗲𝗹 𝗱𝗶𝘀𝗰𝘂𝘀𝘀𝗶𝗼𝗻 𝘄𝗶𝗹𝗹 𝗮𝗹𝘀𝗼 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: • Ruvini Fernando, 𝗛𝗲𝗮𝗱 – 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆, 𝗗𝗲𝗹𝗼𝗶𝘁𝘁𝗲 𝗦𝗿𝗶 𝗟𝗮𝗻𝗸𝗮 & 𝗠𝗮𝗹𝗱𝗶𝘃𝗲𝘀 • Sarath Sathkumara, 𝗖𝗵𝗶𝗲𝗳 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗢𝗳𝗳𝗶𝗰𝗲𝗿 – 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹, 𝗔𝗱𝗶𝘁𝘆𝗮 𝗕𝗶𝗿𝗹𝗮 𝗦𝘂𝗻 𝗟𝗶𝗳𝗲 𝗔𝗠𝗖 𝗟𝘁𝗱 • Sanjay Notani, 𝗦𝗲𝗻𝗶𝗼𝗿 𝗣𝗮𝗿𝘁𝗻𝗲𝗿, 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗟𝗮𝘄𝘀 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗲 (𝗜𝗻𝗱𝗶𝗮) • Shiran Fernando, 𝗖𝗵𝗶𝗲𝗳 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗣𝗼𝗹𝗶𝗰𝘆 𝗔𝗱𝘃𝗶𝘀𝗼𝗿, 𝗧𝗵𝗲 𝗖𝗲𝘆𝗹𝗼𝗻 𝗖𝗵𝗮𝗺𝗯𝗲𝗿 𝗼𝗳 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗲 Moderated by Dushyantha Perera, 𝗣𝗮𝗿𝘁𝗻𝗲𝗿 𝗮𝗻𝗱 𝗛𝗲𝗮𝗱 𝗼𝗳 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 & 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝗟𝗮𝘄. While attendance is by private invitation only, a recording of the discussion will be made publicly available via our website and social media channels following the event. We look forward to sharing insights from what promises to be a timely and substantive exchange on trade, strategy, and Sri Lanka’s position in a rapidly evolving global order. Please email events@sudathpereraassociates.com for further information.
16 February 2026
Inter-Pacific Bar Association (IPBA) Annual Conference 2026 in NewDelhi, from 25th-28th February
Sudath Perera (Founder-Managing Partner) and Dushyantha Perera (Partner/Head of Corporate & Commercial Law) will be attending the Inter-Pacific Bar Association (IPBA) Annual Conference 2026 in NewDelhi, from 25th-28th February. Please reach out to them directly, or via ccldepartment@sudathpereraassociates.com, for meeting requests.
09 February 2026
We are pleased to share our Legal 500 Asia Pacific rankings for 2026.
We are pleased to share our Legal 500 Asia Pacific rankings for 2026. 𝗦𝘂𝗱𝗮𝘁𝗵 𝗣𝗲𝗿𝗲𝗿𝗮 𝗔𝘀𝘀𝗼𝗰𝗶𝗮𝘁𝗲𝘀 has been recognised with 6 practice rankings and 8 individual rankings, including Hall of Fame, Leading Partner, and Next Generation Partner distinctions. We extend our congratulations to our ranked partners: • 𝗛𝗮𝗹𝗹 𝗼𝗳 𝗙𝗮𝗺𝗲: Sudath Perera (Dispute Resolution and Intellectual Property) • 𝗟𝗲𝗮𝗱𝗶𝗻𝗴 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀: Manoj Bandara (Dispute Resolution), Dushyantha Perera (Corporate and M&A), Lakshana Perera (Dispute Resolution), Himani Perera (Dispute Resolution) • 𝗡𝗲𝘅𝘁 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀: Thidas Herath (Labour & Employment), Hafsa Ifthikar (Corporate and M&A) We are also grateful to be recognised across all four Legal 500 Client Satisfaction Survey criteria, reflecting consistent client feedback on quality, efficiency, sector knowledge, and service. 𝗧𝗵𝗮𝗻𝗸 𝘆𝗼𝘂 𝘁𝗼 𝗼𝘂𝗿 𝗰𝗹𝗶𝗲𝗻𝘁𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲𝗶𝗿 𝘁𝗿𝘂𝘀𝘁, 𝗮𝗻𝗱 𝘁𝗼 𝗼𝘂𝗿 𝘁𝗲𝗮𝗺𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲𝗶𝗿 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝗱 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁.
04 February 2026
Honouring 78 years of Sri Lanka’s Independence.
Honouring 78 years of Sri Lanka’s Independence.
25 January 2026
The 73rd BASL Webinar for 2025/2026 and the thirty second Webinar of Series 6, – “Basics of Law: Mergers & Acquisitions”
The 73rd BASL Webinar for 2025/2026 and the thirty second Webinar of Series 6, - “Basics of Law: Mergers & Acquisitions ” is scheduled to be held on Monday, 26th January 2026 from 6.30 PM with Ms.Nipuni Samarasekara, Attorney-at-Law, and moderated by Mr.Rakitha Jayatunge, Attorney-at-Law. Please find the Zoom registration link :-https://lnkd.in/gyAz9FNA
15 January 2026
Wishing you a joyful Thai Pongal filled with abundance, happiness, and success.
Wishing you a joyful Thai Pongal filled with abundance, happiness, and success. May this season of harvest bring prosperity and new opportunities.
21 December 2025
CHAMBERS & PARTNERS ASIA- PACIFIC GUIDE 2026
We are pleased to share our firm’s rankings in the Chambers and Partners Asia-Pacific Guide 2026. In this year’s guide, the firm continues to maintain its strong rankings for its Intellectual Property, Dispute Resolution, and Corporate/Commercial practices. Our Founder-Managing Partner, Sudath Perera, is also listed as an 'Eminent Practitioner' and remains the only Sri Lankan lawyer to be awarded this designation in the directory, with listings in both Intellectual Property and Dispute Resolution. The 2026 guide also reflects ongoing 'Notable Practitioner' recognition for Dushyantha Perera (Head of Department - Corporate & Commercial Law), Himani Perera (Head of Department - Intellectual Property), and Manoj Bandara (Lead Counsel - Dispute Resolution). We thank our clients and peers for their feedback to Chambers & Partners.
09 December 2025
2025 AsiaIP Awards – Kuala Lumpur
We are pleased to announce that Sudath Perera Associates was awarded SriLanka's 'Copyright Firm of the Year', at the 2025 Asia IP Awards held on 6th November 2025 in Kuala Lumpur. We express thanks to our clients and partners for the trust and support that has enabled us to earn this recognition. Pictured below (left): Chathurika Rupasinghe (Partner - Intellectual Property Department)
03 December 2025
𝗖𝘆𝗰𝗹𝗼𝗻𝗲 𝗗𝗶𝘁𝘄𝗮𝗵 – 𝗦𝗿𝗶 𝗟𝗮𝗻𝗸𝗮 𝗡𝗲𝗲𝗱𝘀 𝗦𝘂𝗽𝗽𝗼𝗿𝘁
Sri Lanka is facing one of the most destructive climate-driven disasters in recent history. Cyclone Ditwah has brought severe floods, landslides and widespread infrastructure damage across the island. Thousands of homes are underwater, key transport routes remain blocked, and entire communities have been displaced. The human cost is heartbreaking - 𝗵𝘂𝗻𝗱𝗿𝗲𝗱𝘀 𝗼𝗳 𝗹𝗶𝘃𝗲𝘀 𝗹𝗼𝘀𝘁 𝗮𝗻𝗱 𝗼𝘃𝗲𝗿 𝗮 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗽𝗲𝗼𝗽𝗹𝗲 𝗱𝗶𝘀𝗽𝗹𝗮𝗰𝗲𝗱, 𝗳𝗮𝗺𝗶𝗹𝗶𝗲𝘀 𝘀𝗲𝗽𝗮𝗿𝗮𝘁𝗲𝗱, 𝗵𝗼𝘂𝘀𝗲𝘀 𝗮𝗻𝗱 𝗹𝗶𝘃𝗲𝗹𝗶𝗵𝗼𝗼𝗱𝘀 𝗱𝗲𝘀𝘁𝗿𝗼𝘆𝗲𝗱 𝗮𝗻𝗱 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗶𝗻𝘁𝗲𝗿𝗿𝘂𝗽𝘁𝗲𝗱. In many districts across the country, the priority now is ensuring safety, shelter, food, medicine, and clean water for affected families. Rebuilding homes, schools, small businesses and public infrastructure will take sustained assistance over the coming weeks and months. At Sudath Perera Associates, we stand with our affected communities - committed to supporting relief, recovery, and resilience. We encourage our colleagues, clients, international partners and well-wishers to also consider supporting Sri Lanka’s recovery efforts through verified relief channels. • Official donation accounts of the 𝗦𝗿𝗶 𝗟𝗮𝗻𝗸𝗮𝗻 𝗚𝗼𝘃𝗲𝗿𝗻𝗺𝗲𝗻𝘁: www.donate.gov.lk • 𝗚𝗶𝘃𝗲.𝗔𝘀𝗶𝗮 (supporting the relief efforts of the Sri Lanka Red Cross Society): https://lnkd.in/gjwEv9iG Please also email info@sudathpereraassociates.com for guidance on donation dry rations and other materials directly. 𝗘𝘃𝗲𝗿𝘆 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻, 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝗹𝗮𝗿𝗴𝗲 𝗼𝗿 𝘀𝗺𝗮𝗹𝗹, 𝘄𝗶𝗹𝗹 𝗵𝗲𝗹𝗽 𝗿𝗲𝘀𝘁𝗼𝗿𝗲 𝗵𝗼𝗺𝗲𝘀, 𝗽𝗿𝗼𝘃𝗶𝗱𝗲 𝗲𝗺𝗲𝗿𝗴𝗲𝗻𝗰𝘆 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹𝘀, 𝗿𝗲𝗯𝘂𝗶𝗹𝗱 𝗹𝗶𝘃𝗲𝗹𝗶𝗵𝗼𝗼𝗱𝘀, 𝗮𝗻𝗱 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗿𝗲𝗵𝗮𝗯𝗶𝗹𝗶𝘁𝗮𝘁𝗶𝗼𝗻. We urge all who can, especially our international colleagues and networks, to join hands with Sri Lanka at this critical time.