IFC Warns Sri Lanka against Inward-Looking Growth Path

The International Finance Corporation has cautioned that Sri Lanka will not achieve long-term prosperity unless it adopts outward-looking, export-driven economic policies.Speaking at the Sri Lanka Economic Summit, IFC South Asia Regional Director Imad Fakhoury said the country must reposition itself globally as a sustainable and competitive investment destination.

He noted that despite strong social indicators, Sri Lanka has suffered repeated economic crises due to inconsistent policies and weak reform follow-through. Fakhoury stressed the importance of policy predictability, an improved business environment and a renewed global investment brand.

The IFC currently holds about $270 million in long-term investments in Sri Lanka and sees potential in renewable energy, digital services, agribusiness, tourism and infrastructure. However, it warned that without decisive governance and outward-oriented thinking, Sri Lanka’s recovery risks losing momentum.

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