Sri Lanka

The FDI (Foreign Direct Investment) between January and August 2014 reached US$1.06 billion in Sri Lanka (+22.2% YOY) and with government expenditure to reach record highs in 2015, the recent visit of the Chinese President Xi Jinping, all bodes well for the blooming economic future.

Minister for Petroleum    In a recent visit to Colombo, the CEO of Connaught Finance, Paul Errington, met with the Minister of Petroleum Industries, Anura Priyadarshana Yapa, to discuss the future of the oil and gas industry in the country. Paul was accompanied by the Reverend Wijayapura. The existing oil refinery’s are going through major upgrades with new pipeline being laid across the country to increase efficiencies and Connaught Finance hope to assist with the development.

 

 

PereraOther government meetings were held with the Secretary for Transport, Dhammika Perera, for infrastructure growth discussions. Mr Perera has many business interests in the country which stretch from hotel chains and finance companies to casinos.

Another reflection of the economic performance is the growth in tourist numbers, with an increase of 13.8% (YOY) in August, according to the Sri Lankan Tourist Development Authority. China became the third largest source of tourists, surpassing Germany. The new airport in the south of the island is ready for the anticipated surge in volumes over the next 12 months.

In any growing economy the need to finance is essential and not just for SME’s but also the listed companies, multi –nationals and government bodies. Equipment finance is therefore integral to growth right across the market sectors, whether in tourism, infrastructure, green power or tea production and manufacturing.

One of the major issues holding back this development through local banks is their willingness or lack thereof, to look at product development. FDI is increasing but will the local banks miss out due to their preference to stay within their comfort zone of financing vehicles.

NO K

Reverend, Galagama and his associate met with the CEO of Connaught Finance on the arrival of Colombo.