Sri Lanka Strenght and Weakness

Topics: Sri Lanka, Finance, Investment Pages: 1 (355 words) Published: October 29, 2012
5. Strengths and weaknesses of the country as an investment candidate &
6. Potential risks and rewards to potential investors

Over the past several years, investments in countries such as China and India have emerged as the most popular investments abroad, taking focus off other potentially profitable investments. Sri Lanka is not a country that’s usually mentioned when discussing investments abroad, but the fact is, there are several countries that have seen the true potential of Sri Lanka as an Investment, have seized the opportunity, and are now reaping the benefits. There are significant American, British, German and Scandinavian Investments in Sri Lanka, as well as some Investments form Korea, Australia and Singapore. Some of the weaknesses and risks related to a Sri Lankan investment today are related to overall security and the threat of war. On the extreme side, some believe that Sri Lanka is acquiring investments to maintain and enlarge their armed forces. There are also problems with the current government, some say it is slightly bureaucratic and the decision process is too lengthy and complicated, however it should be stated that when comparing other countries in and around the same region, this is not an enormous problem. Some also fear that the current government is unstable and worry that the country will fall back into unrest. Some investors also find it difficult to find the right partner for them within Sri Lanka. Also the shortage of skilled labour can potentially be a problem for investments in certain booming industries. The infrastructure is currently a problem in Sri Lanka. There is much stress on the transportation networks, and the overall road system is poorly designed, creating a large amount of unnecessary traffic. Some investors have also found it difficult to find local financing for their projects, and say that the investing process in general in Sri Lanka takes too long. Also some investors find that raw materials...
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