Sri Lanka Best place to invest

by Sri Lanka Army news | June 3, 2009 at 10:08 pm
2004 views | 11 Recommendations | 5 comments

Updated...

1). Sri Lanka may become ‘Hong Kong of India’ after war: HSBC.


2). <?XML:NAMESPACE PREFIX = ST1 />Colombo stocks record highest number of transactions.


3). A fresh wave of tourism booms is Sri Lanka after the war's end



Sri Lanka’s economy can bounce back from its weakest growth in six years and become the “Hong Kong of India” as the end of almost three decades of civil war boosts business opportunities, HSBC Private Bank said.


Decades of fighting on the Indian Ocean island shackled its $32 billion economy, which according to figures released yesterday expanded 1.5 percent last quarter from a year earlier as the global recession intensified the slowdown. Ports, retailers, apparel and tea exporters could lead a recovery after the Tamil Tiger rebels were defeated last month.


“The rebound will be spectacular,” said Arjuna Mahendran, the Singapore-based chief investment strategist for Asia at HSBC Private Bank, which oversees $494 billion in assets. “To start with, Sri Lanka’s location gives its port a natural advantage.”


Sri Lanka could benefit from its proximity to India, just as Hong Kong profits from being a trade hub to China. Sri Lanka lies just 31 kilometers (19 miles) south east of India, the world’s second-fastest-growing major economy.

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The Colombo Stock Exchange (CSE) created history on Thursday recording the highest number of transactions for a trading day and surpassed Rs 2billion in turnover at close since the beginning of the year, analysts said.

A CSE release said that a total of 15,290 trades were executed today, surpassing the previous record of 13,254 trades on 28th July 2005 ..

A fresh wave of tourism booms is Sri Lanka after the war's end Friday, 19 June 2009
Sri Lanka, which receives about 500,000 tourists each year, aims to increase that number by at least 20 percent annually through a global campaign entitled “Small Miracle,” said Dileep Mudadeniya, Managing Director of the Sri Lanka Tourism Promotion Bureau. The war discouraged travelers from the U.S. and Europe for years from visiting Sri Lanka. “In another six months, confidence may return to Sri Lanka’s leisure market,” another hotelier expressed fresh hopes.

Sri Lanka’s north all but destroyed by 30-year-old civil war, and for years it constantly rated a risk zone over the world. Then, just as peace returned and the promise of prosperity is on the horizon, fresh hopes have been pouring in. Until May this year, even though Sri Lanka has been a major tourist attraction, it was somewhat significant but dangerous blip in radar screens of many prospective visitors.
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Sri Lanka best place to invest in south Asia:Jim Rogers.


Sri Lanka best place to invest in s. asia: Jim Rogers


  

Jim Rogers, a renowned global investor, in an interview with the Economic Times (ET) of India,   said yesterday that Sri Lanka is the best country  to invest in the Asian region.

 Answering a question raised  by the ET on  comments made by him recently, saying that  he would  invest in China  and Sri Lanka, he said  that if anyone wants to invest in this particular part of the world, the best place would be Sri Lanka. Because it looks like the 30-year war is coming to an end.

”Throughout history, if you go to a place after a war ends, you usually find that there are enormous opportunities if you have energy.  In my view, investing in Sri Lanka in May 2009 is probably a better bet than Pakistan, Bangladesh, India or some of the other countries nearby. Let's hope the new Indian government does something. I have heard wonderful things from Indian politicians for 40 years. And rarely do they produce. It's not the first time that the Congress party has been in  power. If they mean it, India's going to be one of the greatest development stories in the next 20 years. But I don’t know if they mean it.”  he said.

 Speaking on global economic forecasts  and sudden stocks surges,  he said that the market is very risky today.  Mr. Rogers  said that Central Banks all over the world have printed huge amounts of money, and the real economy is not strong enough for all this money to be absorbed... so, it's going into stocks and real assets such as commodities. It's a mistake what they are doing. It's giving short-term pleasure, but there will be long-term pain as we are going to have much higher inflation, much higher interest rates and a worse economy down the road.

The American bond market is already beginning to go down dramatically as people realise that the American government has to sell huge amount of bonds; also, there is going to be inflation, serious inflation, as it has always happened in the past when you had governments printing huge amounts of money.

Stocks are rising even as fiscal deficit is widening. Somewhere it has to snap...

It's going to snap. Maybe later this year, maybe next year, we are going to have currency problems,  even a currency crisis.

I don't know with which currency — maybe with the pound sterling, maybe with the US dollar, who knows? It may be with something none of us have at the moment. When you have a currency crisis, stocks will be affected, many things will be affected. It is not sound, what's happening out there in the world.

In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then all banks failed in the end.

They are making many of the same mistakes now. What's different this time round is that they are printing huge amounts of money which they did not print at that time. So, we are going to have inflation this time.



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Since last month The Colombo Stock Exchange (CSE) has recorded a consistently upward trend with all price indexes indicating exceptional gain. The favorable political atmosphere after three decades of uncertainty caused by the war has significantly contributed to this positive trend. Massive development programme focusing Northern Province is functioning and it will bring more benefits to the economy.


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2
Tamiya

Boycott Sri Lanka. Do not support Sri Lanka's genocide of Tamils.

In his article Defeat of the Tigers is welcome: the conduct of the war is not, Page said: "Britain has helped to rebuild Sri Lanka's tourist industry: Britons accounted for 18.5 per cent of the foreigners who visited the former colony's famous beaches, wildlife parks, tea plantations and Buddhist temples last year. Only India sends more tourists. Many Britons also own property there, especially around the southern city of Galle, not far from where Arthur C.Clarke, the British science fiction writer who settled in Sri Lanka, used to love to scuba dive. The question facing British shoppers and holidaymakers is this: should they continue to support Sri Lanka's garment and tourist industries? Sadly, the answer must be no."

3
israeli.agent

"Boycott Sri Lanka. Do not....blah"

..and help KTTEs (keyboard TTEs)  to revamp LTTE  terrorism and support money laundering , drug running, illegal weapon trade in your own countries. Pour in more tax money to "asylum seekers" friend.


.Agent.

5
Jannathul Munthaha

Actually, the LTTE had until recently one of their biggest funding and arms operations running from the UK. The British govt. refused to proscribe the LTTE as a terrorist organisation and let their funding and arms rings run in the country, despite Sri Lankans enduring 60,000 deaths through suicide bombings, claymore mines, child soldiers, etc.

It was only after much persuasion and the ultimate failure of the very last peace process, when the British authorities realised that the LTTE were in fact not interested in any peaceful solution to the Sri Lankan issue, that they decided to proscribe the outfit - a good 30 years after the whole thing started!

If anything, Britain, Canada and other European nations where the LTTE had an official presence and openly ran their funding operations, are complicit in the deaths of thousands of Sri Lankans from both sides of the conflict. Their constant wavering in pushing the LTTE to come to a peaceful negotiation and the increasing international recognition they gave to the organisation, despite it’s continued violation of the Cease Fire Agreement through suicide bombings and assasinations, were one of the main catalysts in the LTTE abandoning the peace process in the belief they had enough international clout and support to fight the Sri Lankan civil war successfully. A war crimes probe in fact should be levied against these very countries, to determine how they managed to permit such a large organisation function so openly in their countries when people were dying in their thousands in Sri Lanka.

Canada, Britain and other European nations continued to host prominent LTTE leaders, who openly made statements regarding the conflict and had official positions in the organisation. In fact, the death of one, Anton Balasingham’s funeral was held in Alexandra Palace in the U.K.! This is the equivalent of Sri Lanka playing host to prominent Al Qaeda leaders, where they would constantly be issuing statements on their plans and hatred for Britain, Europe, U.S.A and Canada from the island. By looking at what happened in Afghanistan to the Taleban for playing host to Al Qaeda, the same fate would have fallen on Sri Lanka. Sri Lanka however pushed through diplomatic means to fight for the LTTE to be banned and was often shunned away in this struggle.

Yes, there are many things that need to change in Sri Lanka and the process of reconciliation will be long and tedious. But it is best in such instances to encourage and work with these war weary nations in solving their problems - not pushing solutions down by nations that were largely responsible for creating and enhancing the problems in the first place.

Of course no country is free from any discrimination. Minorities everywhere face some kind of discrimination - may it be religious, racial or even sexual. Nothing justifies it and we must all work together to fight it. However, the use of suicide bombers, inc. pregnant women as some, child soldiers, etc. isn’t the way about sorting the issue of discrimination.

But it is also important to note a few things about Sri Lanka which neither Canada or any other country can claim in terms of inclusiveness:

1. Although Tamil citizens make up only 12% of Sri Lanka’s population - 30% of Sri Lanka’s elected MPs are from a Tamil speaking community and 18% are directly Northern Tamils.

2. The religious, cultural and historical festivals of all communities in Sri Lanka are national holidays. This includes Christmas and Muslim festivals, religions practised by only 6% of the population.

3. Both Sinhala and Tamil are official languages of the State. All road signage, official documentation, transport and public as well as private facilities are found in fact in the three languages of English, Sinhala and Tamil. It is mandatory to study all languages in school (where facilities are available) and all new public servants must sit a mandatory exam in either Sinhala or Tamil (whichever language which is NOT their mother tongue).

4. Sri Lanka’s capital and largest city Colombo is only 40% Sinhalese - 60% are from Tamil speaking communities and 40% are exclusively Northern or Indian Tamils.

5. The Govt. has made a public apology for all the riots of the past and for errors of the state in creating the problem.

6. Sri Lanka has had top politicians from the Tamil community, inc. former Foreign Minister Lakshman Kadirgama and highways Minister Jeyeraj, both who were ironically assasinated by the LTTE.

7. Even after the conflict flared up in 2006 - following 6000 violations of the Ceasefire Agreement by the LTTE and only about 600 by the Govt. of Sri Lanka (recorded by the Sri Lanka Monitoring Mission), an attempted assassination of the Army General by a PREGNANT Suicide Bomber and following a series of bomb attacks in Colombo and outside - the Sri Lankan govt. continued to provide gestures of goodwill to the LTTE to come to the negotiating table. This includes continuing their policy of attending to the health needs of LTTE leaders by flying them down to the best hospitals in Colombo for any treatments. Gratitude was often expressed through another bomb.

8. Both of Prabhakaran’s children were educated in State schools at the expense of Sri Lankan tax payers, whose own children had to be victims of bombings, etc. across the country. The Sri Lankan govt. held special exams for Prabhakaran’s children to sit for the O Levels and A Levels separately and enrolled them into State University. When security risks were feared, the Sri Lankan govt. also assisted and sponsored the children to travel to foreign universities for education. The eldest son, Charles Anthony, returned to Sri Lanka and started to attack the very citizens whose tax money and goodwill paid for his education and foreign travels, with the airplanes that the LTTE managed to acquire during the CeaseFire Agreement.

9. The recent restrictive access to aid agencies in the displacement camps or concentration camps (whatever one may call it), is only a restriction on vehicle usage within the camps and not any other aspect of their operation. This restriction only came about following incidents of people being smuggled out of these camps in aid agency vehicles. This was accepted by Gordon Weiss - UN Spokesman Sri Lankan Spokesman.

Of course, the final stages of Sri Lanka’s war was ugly and tragic. Crimes were certainly committed by both sides. One must also not forget that the conflict went to such extremes after the constant pleas of successive Sri Lankan govts to combat the LTTE problem through negotiations or war was constantly ignored by the European and North American bloc of nations, where most of the funds of the group were coming from.

Now that the conflict has finally ended, the best options available is to work alongside the Sri Lankan govt and all it’s people - a population and a state mechanism just as distraught after three decades of fighting. Instead of criticism at this juncture, cooperation is the best solution to help the displaced people and all of Sri Lanka’s people. One must not forget the govt is very raw and weary right now and it’s always best not to rub an open wound further.

Sri Lanka will have to work out an extensive devolution of power to all its provinces so that power goes back to the people. It will be a long and tedious process but the current all party conference in devising this plan will hopefully work.

Sri Lanka is a beautiful island with beautiful people. I have faith and have seen its people live together, from all different communities. Never have I seen a place where places of worship are so intertwined and communities so well knitted. The civil war has been tragic and has left many wounds open and many souls scarred. Its end is something to appreciate so that all communities in Sri Lanka can heal, address the root causes of this problem and move ahead. Let Sri Lankans, esp. those who live there, heal their wounds, unite and progress. The Diaspora community should assist their people in this progress. Stop funding rebel/terror groups which only bring more pain and suffering to people.Yes, I can understand it's done mostly out of the anger and frustration for the discrimination endured by an older generation. But bombings and guns don't make things any better. Contribute to rebuilding your land, both economically as well as socially, so that your children or grandchildren can go back and call it their home.

2
Tamiya

oh. cough, cough.

Sure, there are 300,000 Tamils IDPs ready to be exploited for cheap or no labour, who most probably are willing to work to their bones.

Definitely an excellent place to invest.

1
senthil5000

It is all blood money that is going to Sri Lanka !!

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