Sri Lanka received a record $236 million of foreign direct investment in the first quarter of 2011, with the tourism industry attracting most of the inflows, the island’s Board of Investment said June 7.
The economy is expected to grow sustainably at around 8 to 9 percent over the medium term as confidence is further bolstered and investment picks up.
Sri Lanka has a number of challenges including high fiscal deficit, lack of infrastructure and high dependence on short-term foreign financing,” said Morten Bugge, chief investment officer at Kolding, Denmark-based Global Evolution AS, said July 15. The country also has “high growth, attractive labor costs and a unique strategic geographical location that could be the opportunity for the future, especially in port activities.
It's good time the country work on the challenges and capitalize on the strengths.
The central bank has refrained from boosting rates since 2007, breaking with Asian nations from India to Thailand that have tightened monetary policy to damp price pressures.
Sri Lanka’s inflation will ease over time and the nation’s monetary conditions support faster expansion, according to the International Monetary Fund, which in April disbursed $218.3 million to Sri Lanka as part of its $2.6 billion loan package.
“We would like to see if the improved peace conditions can also attract more foreign direct investment and tourism,” Global Evolution’s Bugge said. “Sri Lanka is a good story. I would like to see some of the things above being handled before additional rating upgrades.”
This kind of positive WOM and recommendations will be favorable on SL and in a time some wealthy nations are suffering, if we build on our strengths with correct strategies while facing and overcoming the weaknesses SL will be able to repeat recent history!!