Sri Lanka Targets Saudi Capital for New Investment and Development Partnerships
COLOMBO, September 29, 2026 — Sri Lanka is stepping up efforts to attract Saudi investment into new development projects, seeking to transform its longstanding relationship with the Kingdom into a broader commercial partnership spanning investment, trade, infrastructure and private-sector development.
Ports, Civil Aviation and Energy Minister Anura Karunathilaka made the investment pitch at Saudi Arabia’s 96th National Day reception in Colombo, calling for closer economic cooperation aligned with Saudi Vision 2030 and the Kingdom’s international investment ambitions.
Karunathilaka said Sri Lanka wanted to move beyond traditional development assistance and identify new areas where Saudi companies and investors could participate in the country’s next phase of economic growth.
“We look forward to creating new opportunities for the people of both countries by working in cooperation with Saudi Arabia’s Vision 2030 and its broader development initiatives,” he said.
From development assistance to investment partnerships
Saudi Arabia has already played a significant role in Sri Lanka’s development financing.
Since 1981, the Saudi Fund for Development (SFD) has provided more than Saudi Riyals 1.5 billion in concessional financing for major projects in Sri Lanka. The funding has supported areas including energy, healthcare, education, water supply and infrastructure. Sri Lankan government records indicate that Saudi-backed financing has supported around 15 development projects over the decades.
Sri Lanka is now seeking to build on that foundation by attracting commercial Saudi capital, rather than limiting bilateral economic cooperation to development financing.
The shift is significant as Saudi Arabia continues to pursue economic diversification under Vision 2030, creating opportunities for international partnerships across infrastructure, tourism, logistics, technology, energy and other growth sectors.
A new phase for bilateral business
The investment push comes amid increasing institutional engagement between the two countries.
Sri Lanka and Saudi Arabia established a Saudi–Sri Lanka Business Council in 2025 through an agreement between the Federation of Saudi Chambers and the Federation of Chambers of Commerce and Industry of Sri Lanka. The council is intended to strengthen private-sector connections and facilitate new trade and investment opportunities.
Sri Lanka has also been actively engaging Saudi business organisations. Earlier this month, Sri Lanka’s ambassador invited the Riyadh Chamber and Saudi investors to participate in the upcoming Sri Lanka Economic and Investment Summit, scheduled for October 12–13 in Colombo, as well as Sri Lanka Expo 2027.
The government has separately explored investment opportunities with Saudi Arabia’s Public Investment Fund (PIF), whose international investment interests include energy, mining, infrastructure, logistics, manufacturing, tourism, real estate, technology, healthcare and financial services.
Opportunities beyond traditional sectors
The latest investment pitch signals that Sri Lanka wants Saudi participation to extend across a wider range of sectors.
Potential areas include infrastructure and logistics, energy, tourism, real estate, manufacturing and other development projects where international capital and strategic partnerships could support expansion.
For Sri Lanka, attracting Saudi investment could provide access not only to capital but also to international business networks and expertise as the country seeks to strengthen productive capacity and generate new sources of economic growth.
For Saudi businesses, Sri Lanka’s strategic location in the Indian Ocean offers a potential platform for accessing South Asian markets and developing partnerships in sectors connected to trade, tourism, logistics and services.
Strong people-to-people links
Karunathilaka also highlighted the substantial Sri Lankan community in Saudi Arabia, with nearly 250,000 Sri Lankans living and working in the Kingdom.
He described the community as an important bridge between the two countries, contributing to the long-standing people-to-people relationship and strengthening bilateral ties.
Saudi Chargé d’Affaires to Sri Lanka Yaser Abdulrahman Al-Hazme said the Saudi embassy remained committed to strengthening political, economic and cultural communication between the two countries.
Investment relationship enters new phase
The latest initiative reflects a broader effort by Sri Lanka to convert its longstanding relationship with Saudi Arabia into deeper private-sector engagement.
With the Saudi–Sri Lanka Business Council, ongoing discussions with Saudi investors and PIF, and upcoming investment forums in Colombo, the two countries are building additional channels for business-to-business cooperation.
For Sri Lanka, the objective is increasingly clear: move from development assistance towards long-term investment partnerships that bring capital, projects and commercial opportunities into the economy.
The success of that strategy will depend on converting diplomatic engagement and investment discussions into bankable projects and actual commitments from Saudi companies and investors.
