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With rapidly rising arrivals and revenues in 2014 and 2015, Sri Lanka is currently in the midst of a tourism growth spurt, which has the potential to turn the small South Asian island nation into one of the world’s most popular tourist destinations in the years to come. In 2015 some 1.8m tourists visited the country, according to data from the regulator, the Sri Lanka Tourism Development Authority. This is up nearly 18% on the previous year. The newly elected government has made ambitious plans to attract 2.2m visitors in 2016 and 4m by 2020. This chapter contains an interview with Rajan Brito, Deputy Chairman and Managing Director, Aitken Spence.

Sri Lanka’s construction industry has been a major beneficiary of the country’s rapid economic development over the past six years. Since the end of the civil war in May 2009, the country has rushed to make up for more than two and a half decades of intermittent building activity across most segments, from high-end residential housing to commercial and office space to a variety of key infrastructure segments. In 2015 and early 2016 Sri Lanka’s real estate market expanded rapidly, continuing a medium-term growth trend that has been fuelled by an increased appetite for residential property among the nation’s wealthy and middle-class population, growing demand for grade-A office and commercial space from local and foreign corporates, and rising interest in the country as a tourist destination. This chapter contains a viewpoint from Patali Champika Ranawaka, Minister of Megopolis and Western Region Development; and an interview with Ranjit Fernando, Chairman, Urban Development Authority.

Spanning 65,000 sq km and with a moderate climate, fertile soil and an abundant supply of groundwater, Sri Lanka has long benefitted from favourable agricultural conditions. The sector remains an economic mainstay and primary national employer. As manufacturing and industrial activities have expanded, agriculture’s position as the primary economic engine has been eroded in recent years, although it remains a major strength, with high-value tea, rubber, coconut and spice production contributing significantly to export earnings. This is despite falling global commodities prices and reduced production hitting export crops in recent years. This chapter contains interviews with Rohan Pethiyagoda, Chairman, Sri Lanka Tea Board; and Merrill Fernando, Founder and Chairman, Dilmah Tea.

Often referred to as the pearl of South Asia, Sri Lanka’s strategic position at the southernmost point between Africa, the Middle East and East Asia has supported its transformation into a leading global shipping hub. The Port of Colombo now stands as the largest and busiest in the region, benefitting from years of investment that have significantly increased handling capacity and cargo volumes. With a host of ambitious upgrades to the country’s ports now completed, the administration of newly elected President Maithripala Sirisena is renewing its focus on the island’s interior, where poor transport infrastructure has constrained access to basic services and overall economic growth, while stifling tourism potential. This chapter contains interviews with Nelson Liu, Overseas Operations Officer, China Merchants Holdings International; and Hanif Yusoof, Group CEO, ExpoLanka Holdings.

Buoyed by its powerhouse apparel, tea, coconut, rubber and gemstone segments, Sri Lanka’s industrial sector has recorded significant expansion in export volumes and earnings in recent years. Although rubber and tea have been affected by falling global commodities prices and volatility in key export markets, rising demand for value-added products, a specialty of the sector, is expected to offset any near-term losses, while growing opportunities for foreign direct investment demonstrate the country’s positive long-term growth prospects. Investment in transportation and increasingly pro-business policies are also expected to help the sector maintain its upwards trajectory, as will a spate of planned free trade agreements and the reinstatement of key trade concessions with the critical markets of the US and the EU. This chapter contains an interview with Mahesh Amalean, Chairman, MAS Holdings.

As Sri Lanka’s economy has expanded over the past half decade, its insurance industry has grown apace, in the process becoming a vibrant and competitive market in its own right. Some 29 insurance companies were operating in Sri Lanka as of the beginning of 2016, at which point the sector’s total assets were valued at LKR394.2bn ($2.8bn), according to data from the industry regulator. This figure is up slightly from the same period the previous year, although down from an end-2014 total of LKR406.8bn ($2.9bn). Recent short-term fluctuations aside, over the past five years the industry has grown considerably, with total assets nearly doubling over the 2010-14 period. On the back of a raft of recent regulatory improvements and demand-driven uptake, local players expect to see continued expansion for the foreseeable future. This chapter contains an interview with Damayanthi Fernando, Director General, Insurance Board of Sri Lanka.