Sri Lanka needs a more efficient bureaucracy and stronger investment protection framework to attract greater German capital, opined Dr. Felix Neumann, Ambassador of Germany to Sri Lanka, at the Pathfinder Foundation’s Ambassador’s Roundtable held at the Taj Samudra, Colombo.
Dr. Neumann noted that with an improved investment climate, the country could attract more German investors. He welcomed Sri Lanka’s “Clean Sri Lanka” initiative launched by President Dissanayake, describing it as a timely and necessary step towards transparency and economic stability, and also commended Sri Lanka’s ongoing efforts to enhance good governance.
Emphasising the importance of the Indian Ocean to global trade, the Ambassador highlighted Sri Lanka’s strategic location and stressed that the nation’s democratic stability contributes to peace and stability across the region.
He further observed that modern security extends beyond defense to include energy, food, and climate security.
Dr. Neumann noted that over 300 German companies have maintained their presence in Sri Lanka for decades, even during challenging times — a reflection of Germany’s long-term commitment to partnership and investment.
He also pointed out that Sri Lanka currently enjoys a trade surplus with Germany and encouraged Sri Lankan exporters to make greater use of EU trade preferences under the GSP+ scheme, which provides preferential access to the European single market.
Concluding his address, the Ambassador reaffirmed Germany’s commitment to a rules-based international order and to further deepening bilateral relations with Sri Lanka.
Responding to questions on the European Union’s Carbon Border Adjustment Mechanism (CBAM), Dr. Neumann emphasised that carbon pricing is not a protectionist tool but a necessary measure to protect the global climate.
He acknowledged the challenges such mechanisms pose for developing economies like Sri Lanka, while noting that Germany recognises its historical responsibility and remains a major contributor to international climate funds supporting the Global South’s transition to renewable energy.
