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Sri Lanka was the first country in South Asia to roll out a nationwide 4G network, its mobile market is highly competitive and it is home to a number of major tech companies. Connectivity is improving quickly, the environment for innovation is undergoing a positive transformation and the government is starting to make significant investments in e-governance. While Sri Lanka may not have the critical mass of places like India and China, it has – as with manufacturing – been able to establish a strong regional position and lay the groundwork for future development. This chapter contains an interview with Jeevan Gnanam, CEO, Orion City.

As Sri Lanka’s second-largest industry after textiles and garments, tourism represents an opportunity to generate revenue and create jobs. The country is fast becoming a popular destination for international travellers, as well as for expatriates returning home to visit friends and family, suggesting that Sri Lanka is in the process of moving from the margins of global tourism to becoming a primary destination in its own right. The World Travel & Tourism Council put the sector’s overall contribution at LKR1.4trn ($9.1bn), or 11.4% of GDP in 2016, with an estimated increase of 5.5% in 2017. This chapter contains an interview with Sutheash Balasubramaniam, Managing Director, Sri Lanka Tourism Promotion Bureau.

Renewed growth in Sri Lanka’s construction industry is being supported by a combination of megaprojects with international partners, strong domestic demand and public investments in infrastructure. Following a slowdown in 2015, the sector is once again enjoying double-digit growth, possessing a strong order book with international investors increasingly present. Still, costs are high and rising, and there are risks to the outlook. Additionally, consistent income growth, urbanisation, the expansion of both domestic and foreign businesses, and the burgeoning appeal of property as an asset class among local investors have all contributed to the dynamism of Sri Lanka’s real estate sector. The real estate sector’s contribution to GDP grew by 2.7% year-on-year in the first half of 2017, according to the Central Bank of Sri Lanka. This chapter contains interviews with Qitao Liu, Chairman, China Communications Construction Company; Anthony Couse, CEO, JLL Asia Pacific; and Sumedha Ratnayake, Director-General, Urban Development Authority.

With a land area of more than 65,000 sq km, Sri Lanka’s agriculture sector is characterised by small-scale farming and a tropical climate that is highly variable. Agricultural output comprises rice, fruit, vegetables and livestock primarily for domestic consumption, and export-focused products such as tea, rubber and coconuts. Around 55% of land is used for agriculture. Traditionally the backbone of the economy, agriculture’s share of GDP has steadily declined over the decades, from 30.4% in 1975 to around 8% in 2015. While Sri Lanka is moving towards an urbanised manufacturing and services economy, the rural agriculture, forestry and fisheries industries are the source of income for more than 2.1m Sri Lankans, the 2016 Labour Force Survey reported. This chapter contains an interview with Navin Dissanayake, Minister of Plantation Industries.

Having a strategic location along one of the world’s busiest maritime trade routes, Sri Lanka is well positioned to capitalise on rising Indian Ocean trade volumes. Under the auspices of the economic development strategy Vision 2025, released in 2017, authorities are moving to transform the country into a leading global trans-shipment and logistics hub. Sri Lanka benefits from a deepwater coastline, giving it a competitive advantage over India. Cargo volumes at the country’s maritime hub, the Port of Colombo, have risen steadily in recent years, with the port recording double-digit growth in 2016. However, delays in building the East Container Terminal, the port’s next phase of expansion, weighed on operations in 2017. This chapter contains an interview with Julian Bevis, Senior Director, Group Relations, South Asia, Maersk Group.

Industry in Sri Lanka has developed over the years by taking the high road. In part driven by necessity, the country has tended to avoid low-margin, high-volume production in favour of value addition and customisation. The result has been solid demand for its goods and a strong international reputation. Meanwhile, investment in infrastructure has improved the operating environment, reforms are ongoing and efforts are being made to foster innovation and promote exports. Shopping is becoming increasingly convenient as modern outlets become more numerous, new malls are being built and an increasing number of global brands are arriving in the country. Most of all, local consumers are becoming more sophisticated and demanding better products as the middle class grows. This chapter contains an interview with Nandana Ekanayake, CEO, Siam City Cement (Lanka).