The Delegation of German Industry and Commerce in Sri Lanka commended the steps taken by Sri Lanka to improve the business sentiments and attract investments to the country.
The delegation hailed the interest shown by Sri Lanka to improve the regulatory environment to enable more German companies which are looking at new destinations for production and investments as part of their diversification strategy.
“There is a lot of positive vibe about Sri Lanka as the current administration is keen to create a healthy environment for investors which is a very good sign for the economy,” said Chief Delegate Delegation of German Industry and Commerce in Sri Lanka, Martin Klose.
Addressing the media and a gathering of businessmen in Colombo last week at an exclusive breakfast dialogue to unveil the findings of the AHK Business Barometer-Sri Lanka: Spring 2025 Edition Klose hailed the recent visit of President Anura Kumara Dissanayake to Germany which received kudos of the German and Sri Lankan business community.
Klose said that more German companies are keen to come to Sri Lanka with high growth prospects and improved macro-economic conditions.
“The recent meetings with the IMF and the EU officials are commendable steps taken by the Sri Lankan government to strengthen the economy,” Klose said.
However, the Spring 2025 results reveal a cautiously optimistic outlook among German companies operating in Sri Lanka.
The Chief Delegate of AHK Sri Lanka opened the event by presenting key insights from the AHK Business Barometer.
Key findings of the survey include 33% of the companies plan to increase local investments, and 48% aim at maintaining the current levels.
On employment while 31% of the companies want to hire more workers 63% intend retaining the current workforce.
Lack of skilled workers accounting for 47%, weak demand 26% and financing conditions 25% were the top concerns of business entities.
Participants identifies U.S. trade policy, climate change and supply chain diversification as key long term external risks.
The panelists stressed that geopolitical tensions would continue to pose risks to Sri Lanka and the global economy.
“Cyber security, climate change, changes in the regulatory environment and supply chain disruptions are some of the major concerns that would shape the economic policies of Sri Lanka,” said CEO, Allianz Insurance Lanka Ltd., Prashant Grover.
Sri Lanka’s potential to developing a vibrant market for medical tourism was underscored by panellists while insisting the need for the political will for it.
“Yes certainly we have been speaking about the scope for mediacl toruism growth in Sri Lnka for sometime but there has to be the willingness by the authorities,’ said Managing Director, B.Braun Lanka, Dr. Nathalie de Dieuleveult.
