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"It is necessary for Sri Lanka to attract more non debt creating foreign investment flows if it is to increase the level of investment required to maintain the envisaged economic growth path, given the shortfall in domestic savings," the Central Bank said.
"Creating a business friendly environment is needed to improve investor confidence and attract foreign investments.
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"While the recent relaxation of exchange control regulations, a strengthened macroeconomic environment as well as the re-establishment of peace in the country incentivise investment, further steps need to be taken to encourage foreign investments."
A working group was already identifying measures to improve Sri Lanka's 102nd place in the World Bank's 'Doing Business' ranking.
Analysts say Sri Lanka has also other problems including increasing problems with rule of law and governance which authorities will need to address.
Sri Lanka's foreign investment promotion agency, the Board of Investment is expecti