The energy sector has made noteworthy progress in a number of respects in recent years. Despite political turbulence in Sri Lanka, key strategic measures were enacted in 2018 to encourage growth, including increasing renewable energy generation capacity; opening the hydrocarbons sector to greater overseas investment; and forming joint working groups to expedite the construction of liquefied natural…
Major changes are on the horizon in the Sri Lankan insurance industry, with much of the groundwork laid for future growth in recent years. A government focus on regulatory improvements, the modernisation of processes, consolidation and further investment in human resources point to continued opportunities for expansion in the sector. While the performance of the life insurance segment has been bumpy,…
After a positive second half of 2017 Sri Lanka’s capital markets experienced considerable headwinds in 2018, with a variety of external and internal factors behind the buffeting. The impacts of macroeconomic issues, increasing competition in terms of investment options, political uncertainty, turbulence in global energy prices and moves by the US Federal Reserve could be seen in both equity and bond…
Sri Lanka’s banks are currently experiencing considerable change. Regulatory matters are a prominent concern, alongside the ups and downs of loan growth and economic policy. A careful balancing act is being performed as a result, with those able to tread the narrow path recording healthy bottom lines and continued service expansion in 2018. The year ahead will likely see this trend continue. There…
Sri Lanka’s economy has been making progress in recent years, which should stand it in good stead during the potentially difficult times ahead. Major efforts have been made to instil greater fiscal discipline, and modernise monetary and exchange rate policy, while steps have also been taken in the management of government expenditure and the maximising of public sector revenue. Meanwhile, trade and…
Trade and investment activities in Sri Lanka benefit from the country’s location along busy Indian Ocean trade routes, abundant agricultural and industrial exports, and a young, skilled workforce. Just 19 km separate its southern-most port from a global shipping lane carrying two-thirds of the world’s oil and half of its container shipments. This makes local ports a natural staging post for cargo…
Sri Lanka has long served as an important strategic destination in the Indian Ocean, catering to merchants and travellers from South-east 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, post-conflict euphoria brought with it a sense of renewal and optimism. A coalition administration elected in 2015 pledged its…
Sri Lanka’s promising progress with regard to free trade agreements, alongside finance reforms and ambitious growth strategies for manufacturing and ICT, look set to encourage increased foreign direct investment in 2019 – with 2018 having seen the highest levels on record. This should help offset the effects of political and economic volatility, as well at the increasing trade deficit that res
Sri Lanka is regarded as one of the best locations for clothing manufacturing in the Asia-Pacific region, driven by its proximity to major textile importing countries and the availability of cheap labour. The clothing industry also has a substantial presence, accounting for 30% of total employment within the manufacturing segment, and over one-third of industrial output annually, with more…
