Sri Lanka’s diaspora is often seen through the lens of remittances. For decades, overseas Sri Lankans have sent home billions of dollars that have propped up household consumption and provided crucial foreign exchange. But the diaspora is more than a safety valve. It is a strategic asset,one with the potential to unlock far greater economic opportunities through structured investment, innovation transfer, and global market access. If mobilized effectively, Sri Lanka’s diaspora could help the country tap into a $100 billion global opportunity in the form of diaspora-led capital, networks, and enterprise.
Around 3 million Sri Lankans live abroad, many of them in high-income countries such as Canada, the UK, Australia, and the Gulf states. This population includes entrepreneurs, professionals, academics, and second-generation innovators who have access to financial capital, technical knowledge, and international business relationships. Yet most government
engagement with the diaspora has remained limited to cultural ties, diplomatic outreach, or basic remittance facilitation. What is missing is a cohesive strategy that views the diaspora not just as senders of money, but as partners in development.
Other countries have shown how this can be done. India, Israel, the Philippines, and Rwanda have established robust diaspora engagement frameworks that leverage their global citizens as investors, mentors, and connectors. India’s IT boom was in part catalyzed by returnees and
diaspora-funded startups. Israel’s military and tech industries are deeply connected to its diaspora talent pools. Rwanda has mobilized diaspora bonds and funds for post-conflict reconstruction. These countries did not rely on sentiment alone. They built platforms, provided incentives, and created confidence through transparent policies.
Sri Lanka has made some progress, particularly through the Central Bank’s remittance-linked incentives and the Board of Investment’s engagement forums. But these are fragmented efforts. There is a need for a formal Diaspora Investment Network,a dedicated initiative or agency that serves as a bridge between overseas Sri Lankans and viable local opportunities.
Such a body would curate investible projects, offer due diligence support, facilitate co-investment with local partners, and ensure regulatory clarity.
The opportunity spans multiple sectors. In tourism, diaspora investors can fund boutique hotels, eco-lodges, and cultural experiences that attract high-value visitors. In agriculture, they can invest in value-added exports and modern logistics. In education and healthcare, they can bring global standards, technology, and management expertise. In startups, they can provide both funding and market connections for global scaling. Even in capital markets,
diaspora bonds and investment funds can provide much-needed liquidity if backed by credible governance.
Trust is critical. Past policy volatility, lack of transparency, and weak enforcement have deterred many diaspora investors. Any successful model must be built on institutional integrity. Tax clarity, property rights enforcement, and investment protection are highly imperative. Equally important is the cultural approach, government agencies must treat diaspora investors as long-term partners, not as transactional donors or one-time buyers.
Technology can support this transformation. A centralized digital platform that showcases investment-ready projects, hosts virtual pitch sessions, provides policy updates, and enables transparent feedback loops would create visibility and momentum. Diaspora business councils, chambers, and professional associations should be invited to co-create and co-own this platform, ensuring it reflects real needs and not just bureaucratic aspirations.
Sri Lanka cannot afford to overlook the strategic value of its global citizens. With the right approach, the diaspora can be a source not just of dollars, but of durable development partnerships. It is time to replace symbolic engagement with structural integration. The $100 billion opportunity is not a fantasy. It is a horizon that comes into view when diaspora engagement is reimagined as smart, strategic, and sustained.
