The Parliamentary Committee on Public Finance (COPF) has approved the Gazette notification issued on the updated guidelines on outward investments, introducing increased thresholds for local companies to invest overseas and streamlining processes to facilitate cross-border expansion.

Under the new framework, the investment limit for listed companies has been raised from USD 500,000 to USD 750,000, and the limit for unlisted companies has been increased from USD 150,000 to USD 200,000. 

Companies seeking to invest beyond these limits can now borrow from foreign sources up to USD 2 million, with Central Bank oversight, and any investment exceeding USD 2 million will require special approval.

All outward investments must be routed through a designated Outward Investment Account (OIA) in Sri Lanka before funds can be transferred abroad. The Central Bank of Sri Lanka has granted general permission to licensed banks to facilitate these transactions swiftly, ensuring companies can access opportunities without undue delays.

Officials who attended the meeting emphasized that these reforms aim to encourage Sri Lankan businesses, particularly in the technology and software sectors, to pursue global expansion while maintaining oversight of capital flows. The changes come amid concerns that previous restrictions were prompting some firms to relocate overseas.

Speaking on the updated guidelines, Central Bank representatives assured that short-term supplier credit (DA terms) remains classified as a current account transaction, with no additional restrictions.

The Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017, published in the Gazette Extraordinary No. 2441/14 of 18.06.2025, was approved after having been considered at a meeting of the COPF, Chaired by MP Harsha de Silva, recently (29 July). (Newswire)

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Only 31 projects out of 179 Foreign Investment Projects in Sri Lanka are found to be successful, the Sectoral Oversight Committee on National Economic and Physical Plans was informed. 

According to a Parliament statement, the matter was disclosed when the performance report of the Department of Project Management and Monitoring, and the current status of Foreign Investment Projects was taken up for discussion at the committee.

The discussion took place when the Sectoral Oversight Committee on National Economic and Physical Plans met in Parliament recently (21) under the Chairmanship of MP Mahindananda Aluthgamage.

Whilst it was disclosed that approximately Rs. 2.6 trillion have been received for Foreign Investment Projects from foreign-funded institutions, the Committee emphasized that it is very regrettable that the foreign loans and grants obtained for the country’s capital expenditure through such projects are not properly implemented to achieve the desired results through the related projects.

The Committee pointed out that the expected objectives are not being achieved through these projects and that the foreign debt of the country is increasing rapidly, and the reason for this is the weakness of the relevant Ministries and their operating institutions as well as the project monitoring units established for the implementation of these projects.

Accordingly, the Committee instructed the officials present to submit a report in this regard within one month. The Committee also approved the performance report of the Department of Project Management and Monitoring.

Following the said discussions, 4 performance reports including the performance report of the Department of Project Management and Monitoring and 3 annual reports were considered in the Sectoral Oversight Committee on National Economy and Physical Planning.

Accordingly, the Performance Report of the Department of Public Finance 2022, the Performance Report of the Department of National Planning 2022, the Annual Report of the Ceylon Industrial Development Board 2020, the Annual Report of the Sri Lanka Tourism Development Fund 2020, the Performance Report of Local Loans and Development Fund 2021, and the Performance Report of the Ministry of Plantation Industry 2022 were taken up for consideration at the Committee meeting.

Members of Parliament and Committee Members Harshana Rajakaruna, Sudath Manjula, Nipuna Ranawaka, Gunathilaka Rajapaksha and non-committee members and Members of Parliament Gamini Waleboda and Wasantha Yapabandara were present at the Committee meeting. (NewsWire)

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