Sri Lanka has emerged as one of the world's top performers in improving investor relations and debt transparency, following the launch of its dedicated Investor Relations Program (IRP), according to the Institute of International Finance (IIF).
In its 2026 Investor Relations and Debt Transparency Assessment, the Washington-based institute identified Sri Lanka, alongside Vietnam, Belize, and Mozambique, as recording the largest improvements in overall investor relations scores compared with the previous year.
Sri Lanka introduced its formal Investor Relations Program in December 2024 under the Ministry of Finance as part of broader efforts to strengthen engagement with international investors and improve transparency in public debt management.
The IIF's annual assessment, which covered 57 emerging markets and developing economies, showed Sri Lanka's headline Investor Relations Country Score rising by 6.3 points to 43.67 out of a maximum 50, reflecting significant progress in investor communication and disclosure practices.
According to the report, while long-term debt sustainability depends on sound economic fundamentals, a country's ability to communicate those fundamentals clearly and consistently can significantly improve market access, lower borrowing costs, and boost investor confidence by reducing uncertainty.
The institute also highlighted the benefits of active investor engagement and transparent disclosure, noting that improved communication creates a "transparency dividend" by helping reduce sovereign borrowing costs over time while strengthening confidence in financial markets.
Sri Lanka also recorded strong progress in the Debt Transparency Index, scoring 11.25 out of a possible 13 points, placing the country among the leading performers in enhancing debt data disclosure and transparency practices.
The latest assessment underscores Sri Lanka's ongoing efforts to strengthen governance, improve fiscal transparency, and rebuild investor confidence as it continues implementing economic reforms and restoring access to international capital markets.
Sri Lanka Exporters Welcome Reduced US Tariff Decision
The Exporters Association of Sri Lanka (EASL) has welcomed the decision by the United States Trade Representative (USTR) to impose a 10% tariff on imports from Sri Lanka under the recently announced Section 301 measures, describing it as a positive outcome for the country's export sector.
EASL said the decision provides important relief for Sri Lankan exporters, particularly considering the significantly higher tariff rates that had been proposed earlier. The association noted that the final decision will help preserve the competitiveness of Sri Lankan products in one of the country's most important export markets.
The exporters' body highlighted that the 10% tariff places Sri Lanka on a level playing field with several key competitors, including Bangladesh, India, Pakistan, Indonesia, Malaysia, and Cambodia.
"Maintaining tariff parity is critically important in highly competitive global markets where buyers make sourcing decisions based on very narrow cost differences," EASL stated.
The association emphasized that even a 2.5 percentage point tariff difference can have a considerable impact on export competitiveness, especially in industries such as apparel, where profit margins are relatively narrow and international buyers closely compare total landed costs across competing sourcing destinations.
EASL said the latest decision provides greater certainty for exporters and will support Sri Lankan businesses in maintaining their position in the US market while continuing to compete effectively with regional suppliers.
The association also noted that the development presents an opportunity to further strengthen the long-standing trade relationship between Sri Lanka and the United States.
However, EASL highlighted that global trade policies can change rapidly, creating uncertainty for exporters, and stressed the importance of continued engagement, adaptability, and strategic planning to safeguard Sri Lanka's export competitiveness.
Sri Lanka Climbs Investor Relations Rankings on Improved Transparency: IIF
