2014 Trade and Investment Profile
The end of the civil war in 2009 has allowed Sri Lanka to focus on rebuilding the country’s economy and infrastructure. The government has set ambitious goals for economic development – aspiring to GDP growth rates over 8 percent and developing five economic hubs in ports, aviation, commerce, knowledge, and energy. Tourism is also attracting investment. With a relatively open investment climate and financial system, moderately stable monetary policy, improving infrastructure, and world-class local companies, Sri Lanka has many of the ingredients to progress economically. For foreign investors, Sri Lanka’s frontier market has been fertile ground for both direct and capital investments.
The principal risks to Sri Lanka’s economy is the small chance that political instability is brought upon the country again by a political minority. Beyond that, there are currency exchange risks for foreign investors and there is the risk that investing somewhere else could do better.
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