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Wall Street Journal says Sri Lanka’s post war economic boom is on the rise

Dec 30, 2010 10:27:13 AM - itnnews.lk

The Wall Street Journal says Sri Lanka’s post-war economic boom is only just beginning. The potential in the island goes well beyond a boost in tourism.

In an year end analysis on the Sri Lankan economy, it said adjusted for inflation, economic growth could be close to 8% this year, up from an average of 5% in the prior decade. Bond market strategists are now expecting Sri Lanka’s credit rating to be revised upward next year.

The report stated that Sri Lanka’s location within East-to-West shipping lanes is promising. Large areas of farmland and coastline in the northeast can be developed now that fighting has ended. It said that the government, recently implemented tax cuts and other reforms aimed at boosting foreign investment. Adjusted for inflation, economic growth could be close to 8% this year, up from an average of 5% in the prior decade. Stocks face a possible headwind too.

The report also stated that as many as 60 companies are likely to conduct Initial Public Offerings next year.