| Author | Perera, K. A. S. S. K. |
| Call Number | AIT RSPR no.SM-02-21 |
| Subject(s) | Investments, Foreign--Sri Lanka
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-02-21 |
| Abstract | After liberalization policies for the Sri Lankan economy were introduced in 1977, the flow
of Foreign Direct Investment (FDI) increased. FDI is very important to Sri Lanka because
it is a developing country. FDI is required to fill the gap between investments and savings
and also the gap between export earnings and import expenditures. The availability of
concessional borrowings for development activities is getting lower and has become a
burden for the economy. Therefore, this study aims to find future possibilities and propose
strategies for increasing FDI.
Due to their global competitiveness, developing countries like China, Vietnam have
attracted more FDI. The focus in this study is the possibility of attracting more FDI to Sri
Lanka. FDI plays a crucial role in the context of development in Sri Lanka, and it is needed
to payback loans, generate employment, earn foreign exchange, and introduce state of the
art technology. The objective is to identify the problems that result in less FDI in Sri
Lanka; studying these problems can help to develop a methodology to find some solutions
and suggest some recommendations.
Policy papers published by the government and Board of Investment in Sri Lanka were
studied. In addition, interviews were conducted with various policy institutions and with
foreign investors, foreign banks and embassies.
This study identifies the fo llowing areas to make Sri Lanka more competitive for FDI:
flexible policies for labor and customs, inviting green-field investors and the investors with
popular brand names, use of natural resources, developing infrastructure and understanding
global competitiveness, reacting to foreign investment, ending the prevailing ethnic issue,
learning how to compete without a quota system in a foreign market, strategies for
increasing the efficiency and effectiveness in the economy and strategies for overcoming
power problems are some key challenges. |
| Year | 2002 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-02-21 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Johri, Lalit M. |
| Examination Committee(s) | Ramachandran, N.;
Truong Quang |
| Scholarship Donor(s) | UNDP
United Nations Development Programme |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2002 |