Sri Lanka deputy minister Abeysinghe says fiscal discipline has restored investor confidence

Sri Lanka is seeking deeper economic cooperation with India as it consolidates recovery from its recent crisis, with port development and investment partnerships at the centre of the push, according to Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe.

Speaking to WION, Abeysinghe said historical ties between the two countries remained strong and that New Delhi’s support during Sri Lanka’s economic turmoil had been decisive. “Indian government has supported us immensely in our economic crisis. Now we have come out of it. But we are so grateful for the Indian government and its people for supporting us over the last few years, especially in the crisis situation,” he said.

He added that leaders in both countries shared an understanding that the Global South and the Indian Ocean economic area needed to work more closely together. Abeysinghe highlighted ongoing work to modernise the longstanding India–Sri Lanka trade framework and pointed to Indian involvement in digitisation, port development and rural projects.

He argued that complementarities between the two economies offered clear opportunities: Sri Lankan firms with established links to Western markets could partner with Indian companies to expand scale, while Sri Lankan manufacturers could set up operations in India to serve the larger domestic market. “Sri Lankan companies, we are actually pushing most of them to go and start manufacturing in India for India,” he noted.

Ports form a central part of the strategy. Colombo, already ranked among the world’s top 20 container ports, is expanding capacity for transhipment, bunkering and related activities. On Trincomalee, Abeysinghe said plans to position the eastern port as a hub for energy and shipbuilding were advancing, involving India and the UAE.

Existing oil tanks are being refurbished and the Indian Oil Corporation already has a presence. “We have already renewing [and] repurposing the tanks there… what we are trying to see is, how do we position that port as a hub for energy and the negotiations are taking place,” he said. The project remains at the feasibility stage and will take several years.

On the domestic front, the deputy minister stressed fiscal stabilisation as the foundation for attracting investment. He said the government had recorded a positive primary balance for three consecutive years and that the external position had turned positive, reducing default risk. Reforms under way include free-trade agreements, tighter border controls to integrate Sri Lanka into global value chains, and digital transformation. “Going forward, things will be much easier than what it is today,” he told Indian investors, adding that the government was committed to remaining “corruption-free and in a disciplined way.”