Investment migration has helped governments raise substantial funds; it is a form of legal migration offered by countries – including through citizenship and residence via investment programmes.

The Group Chairman of Henley & Partners Dr. Christian Kälin explained that investment migration serves the dual purpose of helping nations attract foreign direct investments (FDI), and assisting individuals in seeking alternative residencies and even citizenship.

“If you have a residence permit in a country, you can be more certain of your investments,” he said, during an LMDtv interview in late May.

He noted that “investors also have the possibility of going to these countries anytime rather than only on a short-term visa – or even live there full time. There are a lot of benefits for these individuals and families, as well as the countries that attract them.”

Investment migration goes back to Greco-Roman times when nations offered residence to foreigners who contributed to their empires. Today, it plays a significant role in many countries that operate investment migration programmes, albeit with varying success rates.

Kälin elaborated on how countries have different approaches to targeting investors: “European [investment] residence programmes are mostly interesting for people who seek access to the EU to travel, or have a visa or second residence in a European country.”

He continued: “[Investors coming to] Sri Lanka would want to have a second home for the security of being there for as long as they want and securing their investments.”

“Sri Lanka would attract people from all over the world,” he asserted, adding that investors from Asia, the Middle East and Europe were most likely to consider the island as a second home.

Investment migration programmes focus on different sectors depending on the objectives of governments.

Kälin noted: “Portugal is quite well-known for its residence by investment programme, which mostly used to be for real estate and is now more for investment funds. In Spain and Greece, people buy property, holiday bungalows or homes and obtain a residence permit.”

“In Sri Lanka, it would probably be more interesting to look at infrastructure and climate-related programmes that would help the country,” he recommended, adding that the island needs targeted investment programmes that will help develop its economy.

He added: “The government can channel investments into geographic areas or sectors of the economy where you need them.”

Investment migration is expanding globally, as Kälin pointed out: “The global volatility due to COVID-19 and many other climate-related factors increase the need for people to have alternatives to their home country.”

“On the other hand, countries have realised how interesting it is to attract foreign direct investment through investment migration programmes and are increasingly offering opportunities,” he stated, noting that investors now have an array of options to choose from.

Kälin asserted that “Asia will grow to be very successful in the future; it’s the century of Asia,” adding: “And within that, Sri Lanka can position itself very well because of its geographic location and also the way it is perceived.”

“Sri Lanka is a very beautiful country; it has a very interesting and great history, and its strategic geographic location is very attractive,” he observed, adding that “Sri Lanka could do a lot with investment migration by making it attractive to global investors.”

He also touched on how the picture should change on the ground level in Sri Lanka to make the country attractive to migrating investors.

Kälin stressed: “The single most important factor for prosperity in any country is not the political system but the rule of law.”

“Governments need to ensure that there’s an efficient judiciary and rule of law with no corruption – you need to keep a handle on it; and that of course, is a big challenge,” he concluded.