Finally at peace, Sri lanka poised to join asia's fast growing economies
Published: 28/11/2011 at 12:00 AM
Newspaper section: Business
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Nearly three decades of conflict with the secessionist Tamil Tigers seriously debilitated Sri Lanka's economic development. With financial and human resources diverted to fighting a war that, though largely confined to the country's north and east, spilled over to other areas including the capital city Colombo, development was largely stultified.
The terrorist attacks in Colombo and some other major cities had a deleterious effect on one of Sri Lanka's major foreign currency earners _ tourism _ leaving hoteliers and ancillary industries feeding the tourism sector struggling to survive in a shrinking market.
But all that has changed. Foreign tourists are back in much larger numbers. Business delegations from countries as far apart as the US, India, Singapore and Vietnam are making their way to Colombo.
The military defeat of the LTTE or Tamil Tigers in May 2009 has wrought a perceptible change in Sri Lanka's economic climate, recognised by international financial institutions, foreign media and economic analysts. Today they see Sri Lanka as one of Asia's fast-growing nations with huge potential.
One of the most visible changes to Sri Lanka today is the peaceful atmosphere that prevails whether it be Colombo or the countryside. Foreign visitors are returning to the beaches, historic cities and eco-tourism and health resorts in unprecedented numbers.
Just one year after the war ended the New York Times ranked Sri Lanka as the first place to visit in its list of "31 Places to go to in 2010."
Areas in the north and east which were of cultural, religious and touristic significance are now open and teeming with curious visitors. They watch blue whales frolicking in the famous Trincomalee natural harbour in the northeast or windsurfing off the eastern coast at Arugam Bay.
While some European countries have seen an influx well over 50% in recent months, there is also a sharp increase in tourists from neighbouring India and even China.
The return of tourists has spurred more foreign hotel investors from five-star chains to expand in Colombo and Hambantota in the deep south, which is emerging as an important city with an international airport and modern sports facilities on the cards.
A modern highway from Colombo to the southern port city of Galle spans 100 kilometres along the Indian Ocean, and is studded with hotels, tourist complexes and spas providing traditional medical treatment.
What has all this meant in development terms? The Asian Development Bank in its outlook for 2011-12 is upbeat about Sri Lanka retaining its growth forecast unchanged during this period.
In its revised forecast, ADB expected Sri Lanka to record the second highest economic growth in Asia this year. It kept Sri Lanka's 8% growth forecast for 2011-12 intact because of robust exports and tourism.
"Sri Lanka's economic growth accelerated in the second quarter on higher investment and as the central bank avoided the interest-rate increases that have contributed to a slowdown elsewhere in Asia," said Samantha Amerasinghe, a Colombo-based economist at Standard Chartered Plc.
"Sri Lanka's economy is reaping the benefits of peace."
With the country's economic prospects looking bright, the Sri Lanka Export Development Board is preparing to showcase its growth in an event called Sri Lanka Expo 2012 planned for March 28-30.
"The main objectives are to promote and re-position Sri Lanka trade, investment and tourism, and instil confidence in the country's high quality products and services among international buyers," says Janaka Ratnayake, chairman and chief executive of the EDB.
With 300-odd stalls where some of Sri Lanka's leading manufacturers and service providers will display their products, Thai businesses and entrepreneurs can see an exhibition of Sri Lanka's world famous gems and classic jewellery in addition to traditional produce like tea. Modern ventures in ecotourism, health resorts and luxury-boat building are also on offer.
Newspaper section: Business
================================================
Nearly three decades of conflict with the secessionist Tamil Tigers seriously debilitated Sri Lanka's economic development. With financial and human resources diverted to fighting a war that, though largely confined to the country's north and east, spilled over to other areas including the capital city Colombo, development was largely stultified.
The terrorist attacks in Colombo and some other major cities had a deleterious effect on one of Sri Lanka's major foreign currency earners _ tourism _ leaving hoteliers and ancillary industries feeding the tourism sector struggling to survive in a shrinking market.
But all that has changed. Foreign tourists are back in much larger numbers. Business delegations from countries as far apart as the US, India, Singapore and Vietnam are making their way to Colombo.
The military defeat of the LTTE or Tamil Tigers in May 2009 has wrought a perceptible change in Sri Lanka's economic climate, recognised by international financial institutions, foreign media and economic analysts. Today they see Sri Lanka as one of Asia's fast-growing nations with huge potential.
One of the most visible changes to Sri Lanka today is the peaceful atmosphere that prevails whether it be Colombo or the countryside. Foreign visitors are returning to the beaches, historic cities and eco-tourism and health resorts in unprecedented numbers.
Just one year after the war ended the New York Times ranked Sri Lanka as the first place to visit in its list of "31 Places to go to in 2010."
Areas in the north and east which were of cultural, religious and touristic significance are now open and teeming with curious visitors. They watch blue whales frolicking in the famous Trincomalee natural harbour in the northeast or windsurfing off the eastern coast at Arugam Bay.
While some European countries have seen an influx well over 50% in recent months, there is also a sharp increase in tourists from neighbouring India and even China.
The return of tourists has spurred more foreign hotel investors from five-star chains to expand in Colombo and Hambantota in the deep south, which is emerging as an important city with an international airport and modern sports facilities on the cards.
A modern highway from Colombo to the southern port city of Galle spans 100 kilometres along the Indian Ocean, and is studded with hotels, tourist complexes and spas providing traditional medical treatment.
What has all this meant in development terms? The Asian Development Bank in its outlook for 2011-12 is upbeat about Sri Lanka retaining its growth forecast unchanged during this period.
In its revised forecast, ADB expected Sri Lanka to record the second highest economic growth in Asia this year. It kept Sri Lanka's 8% growth forecast for 2011-12 intact because of robust exports and tourism.
"Sri Lanka's economic growth accelerated in the second quarter on higher investment and as the central bank avoided the interest-rate increases that have contributed to a slowdown elsewhere in Asia," said Samantha Amerasinghe, a Colombo-based economist at Standard Chartered Plc.
"Sri Lanka's economy is reaping the benefits of peace."
With the country's economic prospects looking bright, the Sri Lanka Export Development Board is preparing to showcase its growth in an event called Sri Lanka Expo 2012 planned for March 28-30.
"The main objectives are to promote and re-position Sri Lanka trade, investment and tourism, and instil confidence in the country's high quality products and services among international buyers," says Janaka Ratnayake, chairman and chief executive of the EDB.
With 300-odd stalls where some of Sri Lanka's leading manufacturers and service providers will display their products, Thai businesses and entrepreneurs can see an exhibition of Sri Lanka's world famous gems and classic jewellery in addition to traditional produce like tea. Modern ventures in ecotourism, health resorts and luxury-boat building are also on offer.
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bangkokpost.com/business/economics/268212/finally-at-peace-sri-lanka-poised-to-join-asia-s-fast-growing-economies
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