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With the economy expected to pick up pace in 2018, and steady expansion forecast over the coming years, the insurance sector is well placed to benefit. Regulatory changes are creating challenges for weaker firms, and encouraging even healthy companies to reconsider their positions, particularly in the non-life segment. This should lead to further consolidation, with the stronger players looking to expand. Major international insurers are already playing a role in this process, and the scope for growing penetration from a low base may see new entrants in the medium term. This chapter contains an interview with Ajith Gunawardena, CEO, Ceylinco General Insurance.

Improving economic growth, an increasingly sophisticated domestic market and regulatory reform are the main factors shaping the Sri Lankan banking sector. Stability has become a watchword following a period of rapid credit growth, as a flourishing private sector boosted the development of a previously underbanked market. Although the sector has a healthy growth outlook, the central bank is keen to keep a lid on credit expansion, while higher regulatory standards may trigger long-awaited consolidation. Sound monetary policymaking has helped rein in credit growth to an extent, though respectable economic growth and increasing demand from small and medium-sized enterprises will ensure the rate remains in the double-digits for the coming years. This chapter contains an interview with Indrajit Coomaraswamy, Governor, Central Bank of Sri Lanka.

As the government continues its expansive reform agenda with Vision 2025, Sri Lanka’s economy is expected to record moderate improvements in 2018. In January 2018 the IMF projected that real GDP growth would increase to 4.6% in 2018 – up from 3.1% in 2017 – as the agriculture sector recovers from drought and flood, and construction is anticipated to lead robust services sector growth. Inflation is forecast to ease to 5% in 2018, while the current account deficit should contract to 2.5% of GDP in 2018. Meanwhile, medium-term growth will average 5% over the years leading up to 2022, according to IMF estimates. This chapter contains interviews with Mangala Samaraweera, Minister of Finance and Media; Changyong Rhee, Director, IMF Asia and Pacific Department; and Rajendra Theagarajah, Chairman, Ceylon Chamber of Commerce.

Trade and investment activities in Sri Lanka benefit from the country’s location along busy Indian Ocean trade routes, access to the larger markets of India and Pakistan, abundant agricultural and industrial exports, and a young skilled workforce. Value-added textiles have joined tea, rubber and spices to become a major export earner in recent years, while foreign direct investment (FDI) inflows hit record highs in 2017. Still, both FDI and exports continue to miss government targets, and subdued export growth and rising fuel imports have pushed the trade deficit to new highs. With this in mind, the country is embarking on a bold reform programme that should offer substantial new support mechanisms for trade and investment. This chapter contains interviews with Greg Hands, UK Minister of State for Trade Policy; and Malik Samarawickrama, Minister of Development Strategies and International Trade; and a viewpoint from Stuart Tait, Regional Head of Commercial Banking, Asia Pacific, HSBC.

Following global trends, the Tunisian telecoms industry has continued to move from fixed telephony into mobile, sustained by a rise in data use and the ongoing expansion of smartphone penetration rates. This has opened up the sector to new product development and expansion opportunities, despite the market’s small size relative to some of its regional neighbours. The telecommunications sector is certain to remain fundamentally important to Tunisia’s economic and social development in the years to come. However, the country’s continued sensitive fiscal position – which has pushed the government to look for additional revenue – presents a risk of lowering of the sector’s growth potential over the short-, medium and long term.