Well obviously, nobody invests their money in a devoloping country like SL for charity. They invest expecting to take several times the original investment.
But the money that comes in originally is what helps to fund the trade deficit. All those mercs and benzes (not to mention the aston martins and the rolls and the hummers) need to be paid in foreign currency. Those vehicle manufacturers don't accept rupees. Part of the original inflow circulates within the economy and hopefully helps it to grow.
This implies ..... that a major portion of the foreign money that comes to the Country , ( by way of investment in stock market ) ,will go back to those foreign countries ...to pay for Mercs and Benzes. since our foreign imports bills are very high, Only a small part will be remained in the country. IT is also said that foreign investors will take back much more than they invested in the country, that is also in foreign exchange.
So, will there be REAL advantage to the country , through this foreign investment in the stock market ?