Sri Lanka is showing signs of economic recovery after facing significant challenges. The country’s exports have seen a steady recovery, with a 7% increase in merchandise exports and a 10% increase in services exports. Worker remittances have also rebounded strongly, with a 20% increase from the previous year. Tourism has seen a strong bounce back, with a 14% growth in monthly arrivals and earnings. Foreign Direct Investment (FDI) is also showing early signs of returning interest, especially in sectors such as renewable energy, manufacturing, and logistics.
The CEO of Standard Chartered Sri Lanka, P.D. Singh, believes that the future holds significant opportunity for the bank, with its international footprint and legacy presence in the country. The bank is committed to supporting Sri Lanka’s reintegration into global markets and is uniquely positioned to play a catalytic role in this process. Standard Chartered has been a longstanding market leader in servicing financial institutions and the Government of Sri Lanka, and the bank aims to continue this support, helping Sri Lanka access global capital markets with confidence.
The bank is also committed to expanding its Financial Markets (FM) franchise in Sri Lanka, leveraging its global expertise in emerging market economies. The goal is to add value to clients as they drive the country’s economic growth, with a focus on digitization and structured solutions. Standard Chartered’s transaction banking aims to power businesses of the real economy with world-class cash management, trade finance, and working capital solutions.
In terms of bilateral opportunities between India and Sri Lanka, there are significant avenues for collaboration in manufacturing, services, renewable energy, and regional supply chains. India is Sri Lanka’s largest trading partner, with bilateral trade exceeding $5 billion annually. Strengthening trade linkages through improved logistics and customs cooperation can further integrate supply chains. Sri Lanka offers a strategic location with access to major shipping lanes, making it an ideal partner for regional manufacturing hubs and value chain integration.
Standard Chartered can help Sri Lanka build a stronger and more resilient FDI pipeline by leveraging its global network and facilitating sustainable, long-term investment. The bank works closely with both the public and private sectors to connect strategic investors to priority sectors such as infrastructure, renewable energy, manufacturing, and digital services. Consistency and credibility are key to investor confidence, and the bank is encouraged by the government’s direction in implementing reforms.
To ensure long-term stability and growth, Sri Lanka must focus on enablers such as infrastructure development, bilateral trade treaties, strengthened PPP frameworks, and digitization and innovation. The country must also address potential stumbling blocks, including external headwinds and the need for continued investment and vigilance. Standard Chartered is committed to being a long-term partner in Sri Lanka’s growth story, helping the country not just recover but re-emerge stronger and more connected on the global stage.