Colombo: The envoy of the island nation in Jeddah told Arab News that Sri Lanka is working to increase Saudi investment because Saudi assistance is seen as crucial to helping the country's economy recover.

Due to both poor economic management and the COVID-19 pandemic's effects, the island nation has been plunged into a severe financial crisis, leaving its citizens struggling to pay for skyrocketing living expenses.

Colombo received a nearly $3 billion bailout loan from the IMF in March, but since it will take time for the nation to recover, Sri Lankan diplomatic missions abroad have been working to entice more foreign investors to help the country's battered economy get back on track.

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Saudi Arabian investment has been identified as a crucial component of Sri Lanka's ongoing recovery efforts, according to Falah Alhabshi Mowlana, Sri Lanka's consul general in Jeddah.

"Saudi investment is very important to Sri Lanka," Mowlana said in an interview with Arab News that was conducted over the weekend in Colombo.

"This is the nation that supported Egypt, Pakistan, and other nations during their economic downturn. The stability of Sri Lanka's economy would be greatly aided in the current situation if Saudi investments could be attracted.

Mowlana stated that the tourism and energy sectors likely have the greatest potential for Saudi investment and that the Board of Investment of Sri Lanka has been collaborating with the nation's foreign missions to draw in more foreign investors.

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One of the best sectors to draw Saudi investment is the tourism industry. If Saudi nationals can be properly introduced to the opportunities in Sri Lanka in this sector, it will have a significant impact on foreign direct investment in Sri Lanka.

Sri Lanka realigned its strategies and identified the Middle East as one of its top potential markets when it declared 2022 the "Visit Sri Lanka Year" to prioritise the tourism industry, placing particular hope in Saudi Arabia.

Mowlana claimed that Sri Lankan officials have maintained talks with top tour operators in Jeddah following the holding of numerous tourism promotions last year.

According to the envoy, Sri Lanka may benefit from Saudi Arabia's expanding electric vehicle market.

They are in a position to increase their production in all countries, including Sri Lanka. We can cite some examples, like ACWA Power and Lucid Motors," the Saudi energy colossus and the electric vehicle manufacturer backed by the Public Investment Fund of the Kingdom, respectively.

Foreign Minister Ali Sabry visited the Kingdom earlier in January to advance relations in connectivity, investment, and employment opportunities. Sri Lankan officials have been working to strengthen ties with Saudi Arabia for the past year.

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As a special representative of President Ranil Wickremesinghe, Environment Minister Naseer Ahamed travelled to Riyadh in August of last year. The topic of his meetings there? Increasing energy cooperation.