Etiquette Business settings remain formal with small cultural nuances, but leeway is given to foreigners in this respect. While men normally shake hands with other men, and women with women, some women may not wish to shake hands with a man outside of family circles. It is best to wait and see if a woman extends her hand. Titles are important, and business cards should be treated with respect,…
Having arrived in Sri Lanka in 1505, Portuguese explorers quickly established a foothold via their trading relationship with the kingdom of Kotte. In 1521 an uprising in the kingdom saw King Vijayabahu VII’s three sons mutiny and kill their father in a bid for power, in what would become known as the “Spoiling of Vijayabahu”. Soon afterwards, the kingdom was divided into three, allowing…
Sri Lanka has long served as an important strategic destination in the Indian Ocean, catering to merchants and travellers from Southeast Asia, India, the Middle East and East Africa. While much of the country’s recent history has been tainted by a decades-long civil war, a post-conflict euphoria brought with it a sense of renewal and optimism. Robust growth figures, rising incomes, an increasingly…
Structural and political issues have held back foreign investment in Sri Lanka in the past, but with new free trade agreements in the pipeline, and a government committed to attracting global investors to drive economic growth, the outlook is improving.
With a population of 1.3bn and an economy growing 7%-plus each year, India is a good neighbour for Sri Lanka to have. Trade volumes between the countries have soared in recent years thanks to a beneficial free trade agreement (FTA). Talks have been ongoing about how to deepen this relationship while taking into account political and economic sensitivities. India ranked third in Sri Lanka’s…
After decades in which Sri Lanka underperformed in its substantial potential as a foreign direct investment (FDI) destination, there is a growing sense that change is afoot that will allow the country to make up for lost time. In January 2016 Malik Samarawickrama, the minister of development strategies and international trade, told the global press that Sri Lanka aimed to attract $5bn-6bn in…
Although Sri Lanka has numerous banks, a large part of the population – particularly outside the major urban areas – has looked to other types of financial intermediaries to meet its needs, or has remained outside of the financial system altogether. In addition, years of conflict denied large numbers of citizens contact with normal banking practices, particularly in the north and north-west…
Sri Lanka’s deal with the IMF agreed upon in June 2016 could help the country open a new chapter of wide-ranging economic reform. While noting the country’s economic weaknesses that have been brought into focus in recent years, the fund also looked favourably upon Sri Lanka’s competitive advantages. From them, the country can stands to benefit in the longer term if it addresses structural…
Strong demand for Sri Lankan sovereign bonds is broadening the government’s funding options, while indicating rising investor confidence in the country’s economic outlook and reform programme. Strong Demand Working with a range of international financial institutions, including Citigroup, HSBC and Deutsche Bank, the Central Bank of Sri Lanka (CBSL) successfully floated a $1.5bn, 10-year…
