
Sri Lanka is at a critical point in its economic development, following its worst-ever crisis, and the first half of 2025 (1H25) will be a crucial period, according to tax expert Sulaiman Nishtar.
He emphasized that this period presents an opportunity for Sri Lanka to build infrastructure that will attract industries able to take advantage of global geopolitical shifts in trade and investment.
Nishtar, a Partner Tax at Ernst & Young, noted that the ongoing diversification of global supply chains presents an ideal time for Sri Lanka to enhance its appeal and offer a strong value proposition.
He emphasized the need to build public-private partnerships and establish industrial zones to foster economic growth.
He pointed out that Sri Lanka is already equipped with powerful legislation, such as the Economic Transformation Act (ETA), designed to restructure the Board of Investment (BOI) into three separate entities.
Although the key parts of the ETA, which have been supported by the IMF, have yet to be implemented, Nishtar believes that if the new structure can effectively navigate geopolitical changes, Sri Lanka will be well-positioned for growth.
However, the ETA has faced opposition from BOI employees, investors, and legal experts.