Indian Ocean pearl and maritime silk road hub — recovering economy with strategic port assets
📥 Download PDFInvestment Cooperation Guide — Sri Lanka (2026 Edition) | Published by AERI
Sri Lanka is an island nation strategically located on the Maritime Silk Road. AERI's research reveals that Sri Lanka, despite the 2022 economic crisis, is recovering with IMF support and retains strategic value through its port infrastructure and Indian Ocean position.
In 2024, Sri Lanka's GDP reached approximately USD 84 billion, with growth of 4.5%. Population approximately 22 million. China-Sri Lanka bilateral trade reached USD 4.2 billion in 2024.
AERI believes Sri Lanka's core investment value lies in its strategic Indian Ocean location, world-class port infrastructure, and the Colombo Port City project representing a transformative investment opportunity.
Island in the Indian Ocean, southeast of India. Area: 65,610 km². Capital: Colombo (commercial). Population approximately 22 million. Currency: Sri Lankan Rupee (LKR). World's largest exporter of Ceylon tea.
Board of Investment (BOI) provides incentives. Corporate tax 30% (reduced for export enterprises). VAT 18%. Colombo Port City has its own regulatory framework.
Major projects: Hambantota Port (99-year lease), Colombo Port City (USD 1.4 billion), Mattala Airport. China Merchants Port holds 85% stake in Hambantota and operates South Container Terminal at Colombo Port.
Compiled by: Asia Economic Research Institute | April 2026
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