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Sri Lanka among top 10 hotspots for FDI

15 April 2016 06:32 am - 12     - {{hitsCtrl.values.hits}}

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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, Malaysia, Vietnam, the Philippines, Myanmar, Thailand, India, Sri Lanka and Bangladesh.

In a statement today, IHS said that over the next decade, the Asia Pacific is forecast to be the fastest growing region of the global economy and the region that offers the biggest potential gains for FDI.
Amongst the other South Asian economies, Sri Lanka and Bangladesh are expected to show rapid growth over the next decade. 

The new Sri Lankan government has embarked on sweeping economic reforms, with its first budget containing considerable economic liberalization measures. The Sri Lankan economy is projected to grow at an average annual pace of 5.6 percent per year over 2016-2020. Key growth industries are expected to include logistics, tourism, agricultural products, IT-BPO industries and construction.

“The Asia Pacific region will grow at an average annual rate of 4.5 per cent per year, boosted by rapid growth in consumer spending in China, India and Southeast Asia,” said IHS Chief Economist Asia Pacific Rajiv Biswas.

Malaysia, Indonesia, the Philippines and Thailand are also expected to join the ranks of Asian nations with a Gross Domestic Product exceeding US$1 trillion by 2030.

“This will help to increase the geopolitical and economic importance of ASEAN and economic grouping in international diplomacy and the global dialogue on trade, investment and international standards-setting,” said.

IHS said that Southeast Asia is expected to be one of the world’s fastest growing regions with these four Asean nations.

Referring to Malaysia as Asia’s next advanced economy, the IHS report said that Malaysia’s economy is forecast to achieve a per capita GDP of US$20,000 by 2025, with total GDP exceeding US$1 trillion by 2030.

Biswas pointed out that the structure of the Malaysian economy will continue to shift towards higher value-added manufacturing and services.

“Strategic growth industries in the services sector will include financial services, healthcare, education, commercial aviation, tourism and the IT-Business Process Outsourcing industry, as Malaysia becomes an increasingly important services, services-exporting economy for Southeast Asia,” said Biswas.

Indonesia’s GDP is forecast to grow at five per cent per year over 2016-2020, supported by strong growth in consumer demand and infrastructure investment, he added.

“By 2020, Indonesia will have already become a nation with a GDP size exceeding US$1 trillion, and by 2030, Indonesian GDP is projected to exceed US$3.7 trillion,” said Biswas, adding that Indonesia is Southeast Asia’s largest economy and one of the world’s largest emerging markets.

The Philippines, he said, has shown rapid GDP growth averaging at around six per cent per year over 2011-2015, with GDP growth of 5.8 per cent per year forecast over 2016-2018.

“The total size of the Philippines’ economy is projected to grow from US$300 billion in 2016 to US$700 billion by 2025, and a US$1 trillion economy by 2030,” Biswas added.

Meanwhile, the ASEAN frontier markets of Vietnam, Myanmar, Cambodia and Laos are forecast to continue to grow rapidly.

The IHS study showed that Vietnam will grow at a pace of around 6.5 per cent per year over the medium term, with rapid growth in manufacturing exports of electronics and garments driving industrial development.

“The new EU-Vietnam Free Trade Agreement and the planned TPP deal will significantly boost Vietnam’s market access to the EU and the US for its manufacturing exports by reducing tariff barriers substantially,” he added.(Bernama)

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  Comments - 12

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  • Premalal Friday, 15 April 2016 03:37 PM

    You could have a great return on your investment along with tons of holidays, one of the most unproductive labour forces, unstable currency, overnight tax changes, a public sector so large that action is slow even when they are awake unless of course palms are oiled, and finally a promising set of rulers who do not know the meaning of the word. Welcome to our world. One thing you are guaranteed is the great climate and that is also because our politicians can not do anything about it. I am sure that they like to tax sunshine as well.

    Onlooker Friday, 15 April 2016 03:58 PM

    Credit should go to MR , yahapalana has retarded the progress.

    Rohan Friday, 15 April 2016 03:59 PM

    Yes, Asia will develop to highest standard but how can Sri lanka catch up with the rest, having a bunch of rogue politicians here.

    Lal Friday, 15 April 2016 09:41 PM

    MR nationalised companies, high nepotism, bribery only chased away investors

    Lal Friday, 15 April 2016 09:42 PM

    Credit goes to economic liberalisation of current regime not backward policies of Rajapaksa looters

    das Friday, 15 April 2016 10:55 PM

    Actually credit was given to US during his time. We are desperately trying to pay it back with interest.

    Rationalist Friday, 15 April 2016 07:04 AM

    This seems to be the Norm, with Sri Lankan Businesses.Long ago, in the Early 1970s, when we wanted to leave Sri Lanka to give a Good Education to our Children, a Top Businessman offered Me a Partnership in His Firm. One of the Enticements was, that Part of the remuneration would be Deposited in a Swiss Bank to pay for the Children's Education!

    Bingo Friday, 15 April 2016 08:47 AM

    Lol. I can see almost all countreis in the region in the list..10 out of 13, 14?

    Indika Friday, 15 April 2016 11:24 AM

    I actually can't understand how any economist can praise the decisions of the srilankan government regarding the economy

    Answer Friday, 15 April 2016 12:06 PM

    "economic liberalization measures" you know them

    Premalal Friday, 15 April 2016 12:18 PM

    Sri Lanka is a hot spot indeed, we all feel the heat.

    Ranesh Friday, 15 April 2016 12:32 PM

    Dear Foreigners!ඉතින් දෙයියන්ගෙ නාමෙට invest will you. මීටWe the Sri Lankans


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