Sri Lanka could greatly benefit from China’s BRI says globally renowned investment expert
Macroeconomist and internationally renowned emerging markets investment expert Dr. Jim Walker has reportedly said that Sri Lanka could be a big beneficiary of China’s Belt and Road Initiative (BRI) such as other Asian frontier markets, given that macroeconomic fundamentals are improved.
Dr. Walker has made this observation delivering the keynote address at Asia Securities 3rd Annual Sri Lanka Investment Conference titled ‘Global Growth and Geopolitics – More Pain or Progress?’
He has noted that despite the investment relative on return on equity (ROE) and broad money growth are all negative in Sri Lanka and there was still hope to turn around situation.
Dr. Walker is the Founder and Chief Economist of Asianomics Group, and the Chief Economist at Aletheia Capital.
According to reports, he has said Asian frontier markets partnered with the BRI as these markets also get upside. Sri Lanka’s growth has been relatively low during the past five years, but hopefully things can turnaround if macroeconomic fundamentals particularly in the areas of credit, investment, lending, ROE and interest rates improve.
Although most emerging Asian countries had stagnated in the past decade, Dr. Walker pointed out that they however held up the economic growth rates incredibly well as a result of the domestic demand created through e-commerce, the Daily FT has stated.
Given that Sri Lanka is also highly penetrated via mobile and broadband connectivity he predicted that e-commerce will drive the economic growth in the country in years to come, the local media has reported.
“We can now bridge emerging markets with information and then create domestic market good and services supply. This way it pushes the domestic demand much higher through mobile technology and internet. The penetration was incredible over the past decade and that is what will drive economic growth in Sri Lanka,” he has been quoted as saying.
OSL take:
The statement by the investment expert about opportunities in Sri Lanka would further boost the island’s image as a business/investment destination. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have already made it an attractive business destination in the South Asian region. China’s BRI would now further promote Sri Lanka as a business destination in the region. Foreign businesses/investors could therefore explore business opportunities in Sri Lanka.
| Article Code : | VBS/AT/18122019/Z_1 |