Russian investors are willing to put money into Sri Lanka, but the absence of concrete, bankable projects and constraints linked to international sanctions have stalled any meaningful investment, Russia’s ambassador said Thursday (18).
Speaking at a media briefing at the Russian Embassy in Colombo, Ambassador Levan Dzhagaryan said there are currently no Russian investments in Sri Lanka despite stated interest from the private sector.
“No investments as far as I know, because if it comes from the private sector, it’s up to them,” Dzhagaryan said. “We’re ready to invest, but no projects.”
Dzhagaryan added, Russia has explored ideas for economic cooperation, but none have progressed to implementation. He pointed to international sanctions on Russia as a major obstacle, particularly in areas related to payments and financial systems.
“We had some ideas, some proposals, but we understand that it is a problem for your side because of sanctions,” he said, adding that Russia conducts trade with countries such as China, Vietnam and Iran using national currencies. “But with your country, it’s impossible.”
The ambassador said Russia had even proposed introducing its MIR payment card system in Sri Lanka, but acknowledged that doing so could expose participating countries to secondary sanctions, making the idea unworkable.
Beyond sanctions, Dzhagaryan raised concerns about Sri Lanka’s broader investment climate, suggesting it has discouraged foreign investors, including Russians.
