Sri Lanka must fundamentally rethink its economic relationship with India and position itself to benefit from the rapid expansion of one of the world’s fastest-growing economies, President’s Special Envoy for Foreign Investment Hanif Yusoof said yesterday, describing India’s rise as a ‘once-in-a-generation opportunity’ that the country has yet to fully
appreciate.
Delivering a keynote address at the ‘India Calling’ forum, he said the global economic centre of gravity is shifting towards India, with countries around the world seeking closer trade and investment ties to gain access to its expanding consumer market.
‘The world is looking towards India,’ Yusoof said, pointing to recent trade agreements and deeper economic engagement pursued by countries including the UK, New Zealand, the EU, and nations across Asia and the Middle East.
‘They recognise where the economic centre of gravity is moving. India today is one of the world’s greatest economic growth stories,’ he added.
Yusoof opined that Sri Lanka enjoys a unique strategic advantage that few other countries possess. ‘For Sri Lanka, this is not an opportunity on the other side of the world. It is an opportunity on our doorstep,’ he said.
Calling for a significant shift in business thinking, he urged Sri Lankan companies to stop viewing India as an ‘intimidating’ market and instead treat it as a natural extension of their domestic market.
Recalling his own experience of expanding a logistics business into India despite widespread scepticism, Yusoof said many entrepreneurs underestimate the opportunities available across India’s diverse regional markets.
‘Everybody told me India was too big and intimidating. I didn’t listen,’ he said, noting that his company eventually became one of the five largest customs brokerage firms in India.
He stressed that success in India does not require conquering the entire market. ‘For many Sri Lankan companies, the first objective does not mean conquering India. It simply means succeeding in one Indian State, one city, or one consumer segment. That alone can transform the scale of our businesses,’ he explained.
He said Sri Lankan firms constrained by the country’s relatively small domestic market have access to a neighbouring economy of more than 1.4 billion consumers.
Similarly, Yusoof also urged Indian businesses to look beyond Sri Lanka’s market size and instead recognise its strategic location, modern ports, tourism potential, and connectivity to southern India.
He said Sri Lanka could serve as a regional manufacturing, logistics, and services platform for Indian companies seeking to access markets beyond India.
‘Look at Sri Lanka as a platform on which Indian businesses can manufacture, provide services, establish regional operations, and connect with markets beyond India,’ he said.
Although India is already among Sri Lanka’s largest investment partners, he pointed out that the country should be attracting a much larger share of India’s growing overseas investments.
Yusoof said India’s expanding middle class also presents enormous opportunities for Sri Lanka’s tourism industry.
Noting that India is already Sri Lanka’s largest source market, he said millions more Indians are expected to travel overseas as disposable incomes continue to rise.
He questioned why Sri Lanka should not become the preferred weekend and short-haul destination for Indian travellers seeking beaches, wildlife, wellness, shopping, dining, weddings, and entertainment.
‘We do not need to duplicate India’s scale. We need to position ourselves intelligently,’ he said.
He also encouraged greater collaboration in education, culture, sports, and entrepreneurship, arguing that durable economic partnerships are ultimately built on strong people-to-people ties.
Yusoof said Sri Lanka should embrace India’s economic rise as an opportunity rather than a threat.
‘If we get this relationship right, India’s rise does not diminish Sri Lanka’s prospects. India’s rise accelerates Sri Lanka’s own future,’ he said.