The European Commission says the law and order problems in Solomon Islands need to be resolved to restore investor confidence.
The EC's resident advisor in Honiara, Tom Leemans, says this also means arresting the alleged killer of New Zealander, Kevin O'Brien.
John Buarafi, who confessed to the killing, is still free after being harboured by a policeman and after meeting his uncle who is the police minister.
Mr Leemans says the economy will not pick up unless the law is enforced.
"The way out for the Solomon Islands from the current economic crisis you need money to flow in the country either from local investors or from foreign investors be it grant money or be it investment money from the private sector now if you have a volatile environment or an unstable environment where law and order is not under control then you are scaring off people"
Tom Leemans, EC's resident advisor in Honiara