sri lank from despair to promise

8/9/2019 Sri Lank From Despair to Promise

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Presentation on

SRI LANKA:From Despair to Promise…

In 8 years …

1



Sri Lanka OfersExitin! In"estment

Opport#nities

“Today, it seems that Sri Lanka's timehas come. The civil war is over, the

process of healing is under way, andthere is every chance that Sri Lankawill become a breakout nation.”R#$ir S$arma% A#t$or o& 'reako#t Nations:In P#rs#it o& t$e Ne( Eonomi )ira*es



$as +een !i"en +y reor,in! ana"era!e ann#a* eonomi !ro(t$ o&-./ per ent in t$e post0onit

perio,…

3

A"era!e

2ro(t$

-./

3&or past4 years

566705619)ore t$an /63inrease o"er

t$e pre"io#sa"era e

7.-

A"era!e Ann#a* Rea* 2DP 2ro(t$

-2

0

2

4

6

8

10

Rea* 2DP 2ro(t$ Rate

Per ent

.-3

4.83

4.3

1;/101;--

1;-80566/ 9post0

*i+era*isation

1;/1 0 566/



2DP9<S=

54

+nin 566/

7-

1950 1960 1970 1980 1990 2000 2005 2013

0

10

20

30

40

50

60

70

4/.6

-.8

58. 5-.757.

1;.;

11.8 16.8

1;.117.8

5.8

5;.7

57.65-.

6.55./

/.;

4/.44-.;

45.8

4-.-

/5.8

/8.656.7

Setora* S$are o& 2DP 9at >#rrent Fator >ost Pries:

A!ri#*t#re In,#stry

Ser"ies

( % "importane o& t$e In,#stry setor $as+een inreasin!% ($i*e t$e Ser"ies

setor $as remaine, stron!…

4



Per>apita2DP

9<S=

1%541

in 566/

%58

6

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1,241

3,2802DP Per >apita

<S=

Per apita 2DP $as risen si!ni?ant*yo"er t$e past &e( years…

5

A"era!eAnn#a*Inrease inPer >apita

2DP0

A"era!eAnn#a*Inrease inPer >apita

2DP0

/.8 1.1



-5

0

5

10

15

20

25

30

35

@ear0on0year Ination 9'ase, on >>PI% Sp*ie,

Per ent

maintaine, o"er t$e past / years%($i$ $as !i"en a ne( meanin! to

prie sta+i*ity…

6

>#rrentInatio

n

.5

374mont$s

Ination $as

+eenmaintaine,on a"era!e

at a mi,sin!*e ,i!it*e"e* &or t$e

*ast 74mont$s



Deman, si,e

• Pr#,ent monetarymana!ement

• >ontin#e, ?sa*onso*i,ation

S#pp*y si,e

• i!$er ,omesti&oo, s#pp*ies

• Impro"e,in&rastr#t#re

• 2reateronneti"ity

• Re*ati"e*y sta+*eex$an!e rate

sin!*e ,i!its &or o"er ?"e years$as +een s#pporte, +y +ot$,eman, an, s#pp*y si,eimpro"ements…

7

Fa"o#ra+*eination

expetations

S#+,#e,(a!e

press#res

>ontin#e,

*o( ination



1963 1973 1982 1993 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013

0.0

5.0

10.0

15.0

20.0

25.0

30.0<nemp*oyment Rate

Bota* )a*e Fema*e

Per ent

%key &ator in ,eterminin! eonomista+i*ity% $as mo,erate, an,sta+i*ise, +e*o( /3 o"er t$e past 4years…

8

<nemp*oyment

4.43In 561



566/: Exports <S= mn 7%4- Imports<S= mn 8%87

19761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013

01/%666

016%666

0/%666

6

/%666

16%666

1/%666

56%666

5/%666

)er$an,ise Exports an, Imports

Exports

Imports

Bra,e 'a*ane

Inrease, mer$an,ise exports an,imports o"er t$e past 8 years reett$e o#ntryCs !ro(in! eonomi

ati"ity an, inrease, openness…

9

561

Exports

<S= mn

16%

;4 Imports<S= mn



0

1000

2000

3000

4000

5000

Ser"ie Exports

$as a*so +een risin! ($i*e (orkersCremittanes $a"e inrease,

si!ni?ant*y…

10

0

1000

2000

3000

4000

5000

6000

7000

In(ar, DorkersE Remittanes 561Ser"ieExports<S= mn

4%78

/566/:<S= mn

1%/46

566/: <S= mn

1%;18

561orkersC

Remittanes

<S= mn

7 46



-20

-15

-10

-5

0

5

10>#rrent Ao#nt 9as a 3 o& 2DP

Per ent

B$e externa* #rrent ao#nt $as+een impro"in! ($i*e a**o(in!!reater tra,e openness…

11

>#rren

tAo#nt

De?it

.;

3



0

200

400

600

800

1,000

1,200

1,400

1,600

Forei!n Diret In"estment 92ross

<S= mi**ion

Forei!n Diret In"estments $a"e inrease, too"er <S= 1 +n ann#a**y% &rom ne!*i!i+*e *e"e*s…

12

561FDI

Ino(s<S= mn

1%451A"era!e FDIIno(s1;-80566/<S= mn

A"era!e FDIIno(s56670561<S= mn

161. ;61.



197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000O"era** 'a*ane

<S= mn

'a*ane o& Payments is no( in positi"eterritory on a onsistent +asis…

13

'OP

S#rp*#s<S= mn

;8/.4



0

1

2

3

4

5

6

7

2ross OFia* Reser"es 9in )ont$s o& Imports:

)ont$s o& Imports

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,0002ross Oia* Reser"es

9in <S= +n

<S= +n

" " (rea$e, #npree,ente, *e"e*s an,mont$s o& imports $a"e a*so

reor,e, om&orta+*e *e"e*s…

14

2rossOia*

Reser"es

<S= +n8.-

)ont$s o&Imports

7.6



A"era!eDepreiatio

n

&rom1;-70566/

;.;3&rom

56670561

3

-10

0

10

20

30

40

50

60

70

80

90Ex$an!e Rate )o"ements

Depreiation o& t$e Ann#a* A"era!e Ex$an!e Rate

%$as +een re*ati"e*y sta+*e% t$ere+ys#pportin! eonomi an, prie

sta+i*ity…

15

/



P#+*i ,e+t *e"e*s $a"e +eenimpro"in! o"er t$e past ,ea,e…

16

De+t to

2DP ratioimpro"e,

&rom

1673

in 5665

to

2o"ernment De+t 9as a 3 o& 2DP

5665 566 5664 566/ 5667 566- 5668 566; 5616 5611 5615 561

916.6:

16.6

6.6

/6.6

-6.6

;6.6

116.6

Domesti Forei!n

mpro"e # e ana!emen



A"era!eBime to)at#rity

inrease,

&rom

5./years

in 566/to

4 8ears

743

13

13

3

3

163

183

Breas#ry +on,s 'orro(in! &rom O'<s

R#pee *oans Ot$er

>'SL A,"anes SLD's

mpro"e # e ana!emenis reete, in n#mero#sin,iators…

17

>omposition o& 2o"ernment Domesti De+t

9Deem+er 561 in &a"o#r o& B0 'on,s

A"era!e Bime to )at#rity 9AB) Stea,y Expansion o& t$e @ie*, >#r"e

&or 2o"ernment Se#rities

2005 2006 2007 2008 2009 2010 2011 2012 2013

-

2

4

6

8

1012

14

-

1

2

3

4

5

6

T-bills

T-bondsRupee Loans

Total (Rigt !"is#

@ears

-

5

10

15

20

25

$nd 2005

$nd 2008



%Setor In,iators $a"e mo"e, to+eni!n territory% reetin! impro"e,?nania* system sta+i*ity…

18

>'SLG 153

L>'sG 4;3LS'sG ;3

LF>sG 73

EPFG 13

Ins#rane > ompaniesG 3

Ot$er >ontrat#a* Sa"in!s Instit#tionsG 3SL>sG 13 PDsG 53Ot$er Speia*ise, F inania* Instit#tionsG 13>o0operati"e R#ra* 'anksG 13B$ri&t an, >re,it >o0operati"e SoietiesG 63

566/ 561'ankin! Setor 5%568 -%188

%&'L 441 1,246

L%&s 1,449 5,022L'&s 319 919

Ot$er Deposit Bakin! Finania*

Instit#tions 11; -/7L%s 88 653%o-ope)ati*e Ru)al &an+s 27 95

T)it and %)edit %o-ope)ati*e'oieties 5 9

Speia*ise, Finania*Instit#tions 15; -7

'L%s 53 65/s 46 214

te) 'peialised inanialnstitutions 30 98

>ontrat#a* Sa"in!sInstit#tions 7;4 1%;;8

nsu)ane %opanies 105 360$ 424 1,300te) %ont)atual 'a*ingsnstitutions 165 338

BOBAL %1/1

16%1

8

Rs. +nBota* Assets o& t$e )aor Finania*Instit#tions

Bota*AssetsRs.

+i**ion

566/

%1/

1

561

16%

18

19



B$e 'ankin! Setor $as ma,emaor stri,es sine 5667…

19

20



BESE DEJELOP)ENBS

AND BRENDS AJE NOESBA'LISED A NE

E>ONO)I> PLABFOR) INSRI LANKA.

20

maroeonomi &rame(ork is



Proete,'OP S#rp*#s

&or 5617<S= +n

maroeonomi &rame(ork isen"isa!e, to take t$eeonomy +eyon, <S= 4%666

per apita…

21

In,iator <nit 561 Proetions

5614 561/ 5617 561-

Rea* Setor an, Ination

Rea* 2DP 2ro(t$ 3 -. -.8 8.5 8. 8.4

Per >apita 2DP <S= %586 %-18 4%54 4%85/ /%48/

Bota* In"estment 3 o&

2DP

5;.7 1.6 5.6 .1 4.6

2DP Deator 3 7.- 7.6 /./ /.6 /.6

ea,*ine Ination 3 4.- /.6 4./ 4.6 4.6

Externa* Setor

Bra,e 'a*ane 3 o&2DP

011. 016.; 0;.6 0-.5 0/.7

>#rrent Ao#nt'a*ane

3 o&2DP

0.; 05./ 06.; 6.1 6.5

O"era** 'a*ane <S=mn

;8/ 1%/16 5%18/ 5%;7- %767

Fisa* Setor

>#rrent Ao#nt

'a*ane

3 o&

2DP

06.8 1.1 1.7 5. 5.

O"era** 'a*ane 3 o& 0/.; 0/.5 04.4 0.8 0.8

Proete,2DP perapita in

5617<S=

4%85/ Proete,

De+t2DP&or 5617

7/3

"



"eonomy en"isa!es a !ro(t$ o&a+o#t 83 per ann#m on a

s#staina+*e +asis…

• For t$at to $appen% an

in"estment *e"e* o& a+o#t3 o& 2DP is tar!ete,…

55



Sri Lanka $as a*rea,y*ai, t$e p*at&orm toens#re a stea,y

pipe*ine o&in"estment.

5



2o"t. In"este, $ea"i*y on+rin!in! peae to t$eo#ntry t$ro#!$ a

• Di*i!ent*y p*anne,% >are&#**y&#n,e,% Pro&essiona**y

exe#te, M

#manitarian

O eration54

"



"eonomy en"isa!es a !ro(t$ o&a+o#t 83 per ann#m on a

s#staina+*e +asis…• For t$at to $appen% an

in"estment *e"e* o&a+o#t 3 o& 2DP is

tar!ete,• Sri Lanka $as a*rea,y

*ai, t$e p*at&orm toens#re a stea,y

pipe*ine o& in"estment• 2o"ernment is

onsistent*y impro"in!in&rastr#t#re

5/



5-



Source !"#$

Prosperity% as meas#re, +y t$e 2*o+a* ProsperityIn,ex% as (e** as t$e DI $as impro"e,…

5-

Sri Lanka (as ranke, 76t$ in t$e (or*, in t$e

2*o+a* Prosperity In,ex:• i!$est ranke, in So#t$ AsiaSri Lanka (as ranke, ;5n, in t$e (or*, in t$e #man

De"e*opment In,ex:• Sri Lanka is t$e $i!$estranke, o#ntry in So#t$ Asia

• Sri Lanka $as a,"ane, tot$e $i!$ $#man ,e"e*opmentate!ory &rom t$e me,i#m$#man ,e"e*opmentate!ory

58



%So#t$ Asia in t$e Doin! '#sinessIn,ex 9D'I 5614…• Sri Lanka (as ranke,

8/t$

in 5614%• B$e or*, 'ank

akno(*e,!e, SriLankaCs reent re&ormsin:

– Dea*in! (it$onstr#tion permits

– Payin! taxes – 2ettin! e*etriity – Bra,in! aross

+or,ers• Sri LankaCs D' rankin!

impro"e, in a+so*#teterms

58

So#re: Doin! '#siness ,ata+ase

Sri Lanka &are, reasona+*y (e** in some ot$er internationa*in,ies as (e**:

O"era**D' Sore

561 5614 >$an!e

A+so*#te 76.8- 71.8 6.;7

5;



• De"e*op rene(a+*e ener!y so#res

• Oi* exp*oration an, pro,#tion

• De"e*op oi* tra,e0re*ate, ani**iary

ser"ies

• IB *iteray an, Internet aess &or a**

• >reation o& kno(*e,!e0+ase, o+s an,promotion o& resear$ an, inno"ation

• An e,#ation ,estination&or &orei!n st#,ents

• Are,ite, &orei!n #ni"ersities

• >o*om+o Port M

>ontainer me!a $#+

• am+antota Port M Free

port% Ser"ie

an, In,#stria* port

• 2a**e Port M Leis#re Port

• Brinoma*ee M

In,#stries an, Port >ity

• O*#"i* Port M >ommeria*

an,

Fis$eries port• Arri"a*s M to inrease to

5./ mn +y 5617

• Earnin!s &rom Bo#rism

M to inrease to <S= .1 +n

+y 5617

• Ne( internationa*airport at )atta*a

• )o,ernisation o&

existin!Internationa* Airport9'IA

• De"e*opment an,#p!ra,in! o&,omesti airports

• >entre &or t$e pro"ision o&

ommeria* ser"ies• 2ro(t$ o& ports an, to#rism

(i** ata*yse t$e ,e"e*opment

o& ommeria* setor

%ahinda &hintana pro"i,es t$e ,eman,imp#*se &or in*#si"e an, s#staina+*e!ro(t$ in Sri Lanka…

5;

6



B$e )aritime #+ (i** &o#s on #n*okin!"a*#e o& Sri LankaCs oean reso#res…

• Si!ni?ant in"estments in

t$e setor $a"e reate, a#niQ#e opport#nity &or SriLanka to +eome aomp*ete *o!istispro"i,er &rom a merear!o $an,*er

• Aor,in!*y% t$e seon,(a"e o& maritime,e"e*opment is expete,to +e entre, on,e"e*opin! re*ate,ser"ies s#$ as

– "esse* tra,in!

– ?nania* ser"ies

– *e!a* ser"ies% an,

– re( trainin!

6

Proposa*s in t$e

+#,!et to ,e"e*op t$emaritime setor…

• i!$er ,#ties on +oatimports to ,e"e*opt$e *oa* +oat

+#i*,in! in,#stry• Re,#e, taxes on

pro?ts o& s$ippin!*ines% &rei!$t&or(ar,ers an,

*o!istis in,#stryser"ies toinenti"ise trainin!o& *oa* pro&essiona*sin t$e in,#stry

Pri"ate setor $as respon,e, to emer!in!opport#nities in t$e maritime setor

S , $ , i** + , t ,1



Spee,y $ea,(ay (i** +e ma,e to(ar,srea*isin! an A"iation $#+…

Potentia* as an A"iation $#+ en$ane, +y +ein! entra**ypositione, in t$estron!est an, &astest !ro(in! ro#te o& re!iona* tra"e* o(s

De"e*opment o& F*yin! s$oo*s an, Aerospae En!ineerin! s$oo*s

'IA an, )RIA expansion (i** +e omp*ete, in 561- an, (i** $a"et$e apaity to $an,*eo"er 56 mi**ion passen!ersIn"estment opport#nities in t$e proximity o& )RIA as it is a &reeport

Ratma*ana to +e ,e"e*ope, as a ity airport an, to aommo,ateinternationa* tra o& pri"ate ets

Propose, expansion o& SriLankan Air*ines (i** *ea, to &#rt$er!ro(t$ in t$e a"iation setor

• >reatin! a rep#te, Airra&t )aintenane% Repair an, O"er$a#*9)RO &ai*ity &or t$e So#t$ Asian re!ion

• SriLankan Air*ines ommissione, its ne( A56 an!ar in 561

• Ne( eet eQ#ippe, (it$ &#e* sa"in! te$no*o!y% ($i$ (i**inrease eieny an, impro"e pro?ta+i*ity

Pri"ate setor in"estments (i** *ea, t$e next (a"e o& in"estmentin a"iation

>*ean an, Li!$t A"iation re*ate, man#&at#rin!

St , i *i & i t t i**5



Stea,y pipe*ine o& in"estments (i** ass#re ener!yse#rity stren!t$en t$e emer!in! Ener!y $#+…

First ommeria* pro,#tion o& Sri LankaCs !as ?e*,s isexpete, to ommene in 5617

Sri Lanka is +#i*,in! apaities to pro"i,e oi* tra,e0re*ate, ani**ary ser"ies

B$e existin! apaity at Sap#!askan,a >r#,e Oi* Re?nery(i** +e inrease,

S$e,#*e o& t$e Samp#r >oa* Po(er proet o& /66)

• 766 ) &rom Noro$$o*ai >oa*Po(er P*ant to +e a,,e, to t$enationa* !ri,

)i, 5614

• 156 ) <ma Oya y,ro Po(er P*antto +e a,,e, to t$e nationa* !ri,

'e&ore en,561/

B$e a,,ition o& ne( po(er p*ants (i** $e*p inrease tota*insta**e, apaity o& t$e o#ntry +y aro#n, 73 to 4%/-/) +y en, 5618

Ot$er Key E*etriity 2enerationProets

In&rastr#t#re to transport oi* &rom s$ips to)#t$#raa(e*a (i** +e impro"e,



3.2 '

bn

S#staina+*e to#rism ,e"e*opment (i** +e t$ekey &o#s in reatin! t$e Bo#rism #+…

• it$ t$e impro"ements inommeria* ati"ity%in&rastr#t#re% an, $ea*t$an, e,#ation &ai*ities% t$en#m+er o& to#rists onexten,e, stay is expete,to inrease

• B$is tren, is *ike*y to

ontin#e res#*tin! in as#+stantia* inrease into#rist earnin!s in t$eperio, a$ea,

• 578 proets (ere in t$epipe*ine +y en, #ne 561%

o& t$ese% ?na* appro"a* (as!rante, &or 17 proets

• B$e in,#stry nee,s to a,,aro#n, 55%/66 rooms to t$e#rrent apaity +y 5617 tomeet t$e proete, to#rist

arri"a*s

2 0 1 3 9

P r o " :

2

0 1 2

1.0 ' bn

2 0 1 6 9

P r

o I :

1,005,605 a))i*als

1.3 ' bn 1,274,593 a))i*als

2,500,000 a))i*als

De"e*opment o& ski**s &or emer!in!4



De"e*opment o& ski**s &or emer!in!setors (i** +o*ster t$e Kno(*e,!e $#+…• i!$ *e"e*s o& *iteray rates% enro**ment ratios an, !en,er

eQ#a*ity (i** pa"e t$e (ay &or a ,ynami e,#ation setor

• In a,,ition to e,#ation t$at is pro"i,e, &ree #p to <ni"ersity*e"e*% a stron! ,ri"e to #p*i&t t$e Q#a*ity stan,ar,s o& ,omesti

e,#ationa* instit#tions (i** +e imp*emente,

• Pro!ramme to re,#e reso#re ,isparities +et(een r#ra* an,

#r+an s$oo*s t$ro#!$ t$e trans&ormation o& 1%666 seon,ary

s$oo*s an, /%666 primary s$oo*s

• Speia* &o#s on IB e,#ation (it$ pro"ision o& %ahindodayaTechnical Laboratories( in 1%666 seon,ary s$oo*s an, t$e

intro,#tion o& t$e Be$no*o!y stream at t$e 2>E A,"ane,

Le"e* examinations

• i!$ a**oations &rom '#,!et to arry o#t )e,i#m term

De"e*opment Pro!ramme ($i$ enompasses t$e

esta+*is$ment o& ne( &a#*ties% apaity expansion o& existin!&a#*ties an, a,"ane, ,e!rees

• Pri"ate setor in"estment to p*ay an important ro*e in t$e

e,#ation setor

• Brans&ormin! t$e existin! #ni"ersities into ne( (or*, *ass

#ni"ersities (i** t#rn t$e o#ntry into a net exporter o&

e,#ation ser"ies

$ i i i * i ** $ $ + i**/



B$e ati"ities re*atin! to a** t$ese $#+s (i**spear$ea, t$e trans&ormation o& t$e o#ntryinto a >ommeria* an, '#siness $#+…

• Eno#ra!e t$e re*oation o&many re!iona* operatin!$ea,Q#arters an, re!iona*oes o& internationa*

esta+*is$mentsDe*arin! am+antota an,>o*om+o So#t$ ports as &reeports is a*so expete, toattrat si!ni?ant pri"ate

setor in"estments

7



In&rastr#t#re P#+*i <ti*ities ,e"e*opment% to!et$er(it$ ski**s en$anement (i** a*so &ai*itate t$e>ommeria* #+…

• Fast trake, express(ay an, roa,,e"e*opment proets $a"e re,#e,transportation osts an, en$ane, aessto markets t$ro#!$ impro"ements in#r+an0r#ra* *inka!es

•ea*t$y pae o& !ro(t$ in t$ete*eomm#niations setor $as res#*te, in$i!$ mo+i*e p$one penetration% rapi,*y!ro(in! Internet penetration an,inrease, potentia* in mo+i*e p$onere*ate, an, e0ommere ati"ities

• P#+*i #ti*ities are +ein! ,e"e*ope, toater to t$e emer!in! (or*, *ass ity o&>o*om+o

• Pro,#ti"e an, ski**e, *a+o#r &ore (it$*ar!e poo*s o& pro&essiona*s as a res#*t o&!o"ernmentCs ommitment to &ree

At t$e same time as a res#*t o& many ot$er rea* setor



3.5 ' bn

1,050 ' n

At t$e same time% as a res#*t o& many ot$er rea* setor,e"e*opments% tra,e in Ser"ies is a*so expete, to ae*erates$arp*y…

p#ter an, In&ormation Ser"ies

2 0 1 3 9

E s t :

2 0 1 2

564 ' n

2 0 1 6 9

P r o I :

604 '

n

Bransportation Ser"ies MPassen!er Fares% Frei!$t an,Ot$er Port Re*ate, Ser"ies

2 0 1 3 9

E s t :

2 0 1 2

2 0 1 6 9

P r o

I :

1.6 ' bn

1.8 ' bn

Bransportation Ser"ies M Frei!$t an,Ot$er Port Re*ate, Ser"ies

Ski**e, ork&ore Positions Sri Lanka as



Reo!nition: ')i Lan+a as on te o-so)ing destination o

te ea) aa)d at te national outsou)ing

aa)ds : ; 2013

Re"en#e:

&usiness )oess utsou)ing ee)ging as one

o te top e"po)t ea)ne)s ; ta)get to )ea '

1bn b 2015

In"estment: %olobo Lotus Toe) )o<et ; ultiuntional T=

and Teleouniation Toe) to be built it

apait o) 50 teleasting se)*ies, 35 )adio

b)oadasting se)*ies

T pa)+ in >abantotaRanke, 51st in t$e AB Kearney 2*o+a* Ser"ies Loation In,ex 92SLI in 5611

Ranke, /t$ in ?nania* attrati"eness% a$ea, o& In,ia% >$ina an, a** o& >EE

2artners 6 Lea,in! Loations &or Ofs$ore Ser"ies 9561605611 In*#,e, amon! t$e Bop 16 in Asiapai?

15t$ in t$e top rankin! ,estinations in I') 2*o+a* Loation Bren,s Report

Ranke, amon! t$e top 16 emer!in! !*o+a* ,estinations +y 2*o+a* Ser"ies )a!aTine

Source: SLASSCOM

Ski**e, ork&ore Positions Sri Lanka asan IB'PO Po(er$o#se

Sri Lanka emerging as a global sourcing destination, outpacing regional peers

38

2010 2013 20150

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,00090,000

0

200

400

600

800

1000

1200

23000

80000

390

660

1,000

?o)+o)e Re*enue(' n#

3x growth in revenue and workforce in IT / B!expected

"merging hub for B! and technolog#

;



8.1 ' bn

orkersC remittanes are a*so expete, to ontin#e to #s$ion t$eexterna* setor ($i*e pro"i,in! a #se&#* so#re o& emp*oyment…

• Ino(s &rom remittanes are expete, to +e

aro#n, <S= ; +n +y 561-• Str#t#ra* $an!es in t$e eonomy are

expete, to mo,erate t$e !ro(t$ o& ino(s&rom remittanes in t$e &#t#re – B$e !ro(t$ o& t$e ser"ies re*ate, eonomy

9'POKPOBo#rismPort (o#*, *ea, a ,erease, ,eman,&or o"erseas emp*oyment

– >reation o& &#rt$er ne( emp*oyment opport#nities in t$eo#ntry

– Re,#tion in *o(er ski**e, mi!ration s#$ as $o#semai,s%

a*t$o#!$ earnin!s an, remittanes per (orker (o#*, +e$i $er ,#e to ski**e, (orker mi ration

2 0 1

2

2 0 1 6 9

P r o I :

6.0 ' bn

@10.1A o B/C @8.6A o B/C 2 0 1 3 9

P r o " :

6.3 ' bn

@9.4A o B/C

46



As a onseQ#ene% t$e >#rrent Ao#nt +a*ane isexpete, to impro"e &aster t$an expete,…

• Inrease, ino(s&rom (orkersCremittanes% to#risman, ser"ie exports

(i** miti!ate t$eimpat o& t$e tra,e,e?it

5611 56155619Pro"

5614P 561/P 5617P

<S= mn 04%71/ 0%;85 05%76- 01%;/6 081 161

3 o&2DP

0-.8 07.- 0.; 05./ 06.; 6.1

Proetions &or t$e >#rrent Ao#nt

Externa* ?nanin! (i** ontin#e to +ri,!e t$e sa"in!s



Externa* ?nanin! (i** ontin#e to +ri,!e t$e sa"in!s0in"estment !ap% a*t$o#!$ t$e !ap is expete, toontrat !ra,#a**y o"er t$e me,i#m term…

•Domesti sa"in!s (i** +eeno#ra!e, t$ro#!$ positi"erea* ret#rns at +eni!n *e"e*se"en in t$e *o( interest rateen"ironment en"isa!e,

•De+t an, EQ#ity markets (i**ontin#e to +e inenti"ise, aso#t*ine, in t$e '#,!ets 561an, 5614% ($i*e pri"ate setor(i** +e &#rt$er eno#ra!e, toraise &#n,s o"erseas

41

It is time &or t$e orporatesetor a*so to enterinternationa* markets toraise &#n,s &or ,omestias (e** as internationa*

expansion

e rea sa on o expe e ap a o(s%45



e rea sa on o expe e ap a o(s%a*on! (it$ t$e impro"in! #rrent ao#nt%(i** res#*t in ontin#o#s &a"o#ra+*eo#tomes in t$e 'OP…• Aor,in!*y% a 'OP s#rp*#s o& aro#n, <S=

.6 +n is expete, +y 5617

4



2i"en t$ese expetations in ,iferent setors% t$e>entra* 'ank is on?,ent t$at ination o#*, +eontaine, at aro#n, /3 or +e*o(% in t$e me,i#m term…

• In 5614% t$e to*era+*e ran!e o& ination,#rin! t$e year (o#*, +e 4073

• B$erea&ter% #nti* 5617% 0/3 (o#*, +e t$e

to*era+*e ran!e o& ination

It is a matter o& satis&ation t$at t$e past 4



E"en in t$e &#t#re% po*iy tra,e0ofs (i** +e !i"en

,#e attention to maintain a +a*ane, approa$ to,eision makin! 44

s a a e o sa s a o a e pasyears $a"e +een amon! t$e on*y / years o&I2 2ROB LO INFLABION years int$e post01;-- perio,…

4/



It is a*so anot$er matter o& satis&ation t$at t$e ,ea,es o*, "iio#sy*e $as no( +een rep*ae, (it$ t$e present ,ay "irt#o#s y*e…

Sri Lanka (as trappe, ina "iio#s y*e &or moret$an / ,ea,es

Sri Lanka is #rrent*yexperienin! a "irt#o#sy*e

47



2oin! &or(ar,% t$e >entra* 'ank (i** a*so ens#re t$at its &#t#remaroeonomi po*iies (i** +e &as$ione, so t$at t$e o#ntry(i** a"oi, t$e possi+*e )i,,*e Inome Brap…

• 'y 5617% Sri Lanka (i** !ra,#ate to t$e <pper )i,,*eInome ate!ory as per internationa* *assi?ation

As some o#ntries $a"e sta!nate, at t$is mi,,*einome *e"e*%

Sri LankaCs me,i#m term maroeonomi

) *stimate for +-

4-



>o*om+oCs sky*ine is $an!in! +e&ore o#r eyes…

So#re: >o*om+o >entra* '#siness Distrit Bo(n P*annin! St#,y%Deem+er 561

A*rea,y Sri LankaCs emer!ene $as48



A*rea,y Sri Lanka s emer!ene $as+een reo!nise, +y many…

B$ere are opport#nities &or ot$ers too...

…No( is t$e time to in"estU

>o*om+o So#t$Port

Port >ity

Lot#sBo(er

$iversified Investor Baseat %ecent &S' Bond Issuance

12%

26%

62%

(sia "urope &S

)**+ Inner-vs

)*. !uter-

a"e*ok>ity

sri lank from despair to promise

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