Backed by supportive government policies, Sri Lanka is fast emerging as the hottest spot for investors in South Asia.
Since the end of the nearly quarter century civil war in 2009, Sri Lanka has had a peaceful domestic environment resulting in the country attracting a large inflow of foreign exchange with investment in the real estate industry alone accounting for over a billion dollars, primarily from the Asian region.
In fact, Sri Lanka is ranked among Asia-Pacific’s top 10 foreign direct investment (FDI) hotspots, according to a study by US-based global information company, IHS Inc. The other Asia-Pacific FDI hotspots are China, Indonesia, Vietnam, the Philippines, Myanmar, Thailand, India and Bangladesh.
Further, the economy has been aided by favourable government policies which have boosted investors’ confidence. According to the Board of Investment (BOI) of Sri Lanka, the government has plans to transform Sri Lanka into a strategically important economic center by developing five strategic hubs – a knowledge hub, a commercial hub, a naval and maritime hub and an energy hub, taking advantage of Sri Lanka’s strategic location and resources.
Along with the developments that are taking place, Sri Lanka is also on the verge of being classified by the World Bank as a middle-income country with the per capita income projected to sufficiently increase in the very near future. The figure is targeted to cross USD5,000 by this year while it was USD4,000 per capita in 2014.