While national security considerations when developing foreign investment regulation isn’t new, it is becoming a greater consideration when assessing investment into sectors and companies that play a critical function to society or are of strategic importance to a country. A recently published Discussion Paper by CSF serves to introduce this emerging area to Sri Lankan trade and investment stakeholders, provide some country examples, and to inform further deliberation on the topic.

While ESG seeks to channel investment towards companies that are environmentally responsible, socially conscious, and well-governed, their true sustainability impact remains debated. Several issues have been highlighted in recent reports. For Sri Lankan firms, a critical look at ESG is timely, to make meaningful progress on charting a greener, climate-resilient economic future.