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Ruchir Sharma urges Sri Lanka to spring a ‘surprise on the upside’ to catch foreign investors’ eye

Published

3 years ago

2024/01/8

Sahan Weerasooriya

Ruchir Sharma

By Sanath Nanayakkare

When a country is in an economic crisis, it creates an environment conducive to implementing economic reforms which would be difficult to do in good times, however, it still depends on how far the reformist leaders can shape the opinion of the people and the people’s willingness to take those reforms on board, Rockefeller International Chairman and Breakout Capital Founder/ CIO Ruchir Sharma said in Colombo recently.

He made this comment while delivering a public lecture at the Central Bank of Sri Lanka where Sharma shared key insights from his newest book, ‘The 10 Rules of Successful Nations’, illustrating what Sri Lanka can do to catch the eye of indifferent foreign investors.

“At a time of crisis, when a new reformist leader is elected to navigate the country through it, the reforms will be painful in the beginning. If the people say,” Okay, go ahead and do something to contain the crisis, that’s fine. That happened in Greece and today the country is a shining star in Europe. But what happened in Argentina was different as the people didn’t want to go ahead with reforms despite the crisis,” he said.

In this book, Sharma delves deep into 10 rules and areas of growth which are namely; demographics, politics, state, debt, currency, investment, inflation geography, inequality and sentiment. He said that he has given his weightings to the above rules from the perspective of an investor looking at a country’s investment outlook.

The following are some select excerpts from his speech particularly indicating where Sri Lanka is ranked on his 10 rules.

Rule 1- Demographics

“We noticed Sri Lanka’s working age population is projected to grow in the next 5-10 years at only 0.1% a year. That is a very low level. This means you need to do something else to offset it. It is very difficult for Sri Lanka to grow at a rate of more than 6% when your working age population is only growing at 0.1% unless it relies on immigration, automation or increase the retirement age of the labour force.”

Rule 2 –Politics

“Most countries carry out painful economic reforms only when they hit a crisis because the population is also ready to back the reformer. Even India made reforms under crisis. Sri Lanka is going to have elections this year and I don’t know which way people are going to be voting. However, implementing economic reforms and maintaining fiscal stability in the foreseeable future would be crucial for any political party that comes to power.”

Rule 3- State

“We have noticed Sri Lanka’s spending as a share of GDP is now under control. Spending is not the problem. But taxes as a share of GDP are very low in Sri Lanka.”

Rule 4- Debt

“Greece was in crisis and today it is a growing economy in Europe. They followed the right policies and got the debt under control and capitalized on tourism and exports to boost the economy. Sri Lanka can take a smooth and continuous trajectory down this path.”

Rule 5- Currency

“Sri Lankan currency ranks pretty well because it is very cheap in the eyes of investors which is at present stable and effective”.

Rule 6- Investment

Successful countries have investments as a share of their GDP of about 25-35% .That is the sweet spot. And more successful countries have a manufacturing base with a share of their GDP at about 20% or so. Sri Lanka is in the middle in this aspect.

Rule 7- Inflation

Sri Lanka has a success story on containing inflation because of reigning in monetary expansion and having a good monetary policy framework. Most central bankers are stuck in the old framework and focus a lot on consumer price increases. But we also need to consider asset price inflation (property prices), stock prices as well. If those too increase and are backed by a lot of debt financing, that could pose a problem.

Rule 8- Geography

Sri Lanka is on the right trade route but has not fully exploited it. Also, the growth isn’t spread out internally. So much of the population and growth activity are concentrated in Colombo area and the country needs to think about new cities or new urban centres.

Rule 9- Inequality

Too much inequality is not great for a country. But Sri Lanka is not affected by this as the country has few billionaires.

Rule 10- Sentiment

Countries which are in a crisis mode are the ones that carry out economic reforms and Sri Lanka can gain approval in this exercise.

“Generally Sri Lanka ranks relatively well from an investor’s perspective as there is a big improvement over the last couple of years. Now the talking point is what is going to happen on the political front. And once that is settled, Sri Lanka needs to determine its growth engine. The classic growth engine for Sri Lanka would be manufacturing-for- exports to enable rapid increase in per capita income.”

Sounding direct without being ruthless, Sharma said at the conclusion that the world’s investor community is indifferent to Sri Lanka and they don’t talk much about Sri Lanka as their expectations about the country are low.

However, he urged Sri Lanka to capitalize on its potential and spring a surprise on the upside to catch the investors’ eye.

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Related Topics:Rockefeller International Ruchir Sharma

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SLEIS 2026 to examine Sri Lanka’s energy transition and its implications

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7 hours ago

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Thilina Walpola

Reliable and affordable energy is essential to Sri Lanka’s economic growth, industrial development and competitiveness. As the country seeks to strengthen energy security while reducing its dependence on fossil fuels, the energy sector will be a key area of discussion at the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October 2026.

The session, “Beyond Fossil Dependence: Balancing Security, Sustainability, and Growth,” will examine how Sri Lanka can diversify its energy sources, accelerate renewable energy adoption and attract investment while ensuring a reliable energy supply for businesses and households. Discussions will also consider the infrastructure and policy frameworks needed to support the country’s transition towards a modern and competitive energy system.

Ms. Edore Onomakpome – Regional Infrastructure Industry Manager – Bangladesh, Sri Lanka and Nepal, at the International Finance Corporation will keynote the session, and join the panel discussion featuring G.M.R.D. Aponsu – Secretary to the Ministry of Energy, Damitha Kumarasinghe – Director General (Chief Executive Officer), Public Utilities Commission of Sri Lanka, and Manjula Perera – Managing Director, WindForce PLC. The discussion will be moderated by Sheran Fernando – Senior Advisor, Plus94.

The session will also explore the role of public-private collaboration in developing new energy solutions, encouraging investment and creating opportunities within Sri Lanka’s evolving energy sector. It will consider how energy policy and investment decisions can support both economic expansion and the country’s longer-term sustainability objectives.

The Sri Lanka Economic & Investment Summit 2026 is supported by its valued sponsors and partners. Platinum Sponsor – Standard Chartered Bank Sri Lanka, Gold Sponsor – VISA Worldwide (Pvt) Ltd., Bronze Sponsor – South Asia Gateway Terminals (Pvt) Ltd., Strategic Development Partner – Asian Development Bank, Telecommunication Partner – Dialog Telecommunication, Television Partner – Dialog Television, Session Sponsors – David Pieris Motor Company (Pvt) Ltd., Hemas Holdings PLC, Sunshine Holdings PLC, International Construction Consortium (Pvt) Ltd., Official Logistics Partner – Hayleys Advantis Limited, Official Airline – SriLankan Airlines Ltd., Official Hospitality Partner – Shangri-La Colombo, Airline Partner – China Eastern Air Holding Co. Ltd.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).

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A fresh chapter for the George Keyt Foundation: A renewed commitment to the Sri Lankan art ecosystem

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7 hours ago

2026/09/26

Thilina Walpola

The George Keyt Foundation (GKF), dedicated to preserving the legacy of modernist painter George Keyt and fostering local art, has announced strategic appointments to its leadership team, bringing together a mix of global academic expertise, corporate leadership, and artistic passion. These enhancements aim to inject fresh expertise and academic depth into the Foundation’s long-term vision.

Establishment of the New Advisory Committee

To broaden its operational reach and deepen its engagement with the global art market, the George Keyt Foundation has established an Advisory Committee. The newly appointed committee members include:

• Dr Sujatha Meegama is a Senior Lecturer in Buddhist Art History at the Courtauld. She is an acclaimed art historian, author and academic, bringing specialised knowledge in South Asian art history to guide the foundation’s curatorial and educational directives.

• Dr Shamil Wanigaratne: A clinical psychologist, author, and avid art historian, Shamil will lend his unique perspective to help the foundation design meaningful public outreach and cultural preservation strategies.

• Abbas Esufally: A veteran corporate leader and patron of the arts, Abbas is transitioning from his role as a GKF Trustee to this advisory position, where he will continue to offer his sharp business acumen and extensive network.

New Trustee Appointment

Leesha Captain has been appointed to the Board of Trustees. Inspired by Sri Lankan artists, Leesha is a recognised supporter of the local art scene. Leesha’s hands-on perspective will strengthen the foundation’s core team as they develop and design new art programs.

A Vision for the Future

“These new appointments mark an exciting chapter for us as we build on our decades-long history of promoting Sri Lankan artists,” says Malaka Talwatte, Chairman of the Foundation. “The combination of Leesha on the board, alongside the diverse expertise of our new Advisory Committee, will significantly amplify our efforts in curating high-profile exhibitions and expanding local and international partnerships”.

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Sun Siyam Pasikudah celebrates World Tourism Day with culture, cuisine and community

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Thilina Walpola

Sun Siyam Pasikudah, part of the Privé Collection under Maldivian-owned Sun Siyam Resorts, will mark World Tourism Day on 27 September 2026 with a full day programme celebrating the culture, cuisine and natural beauty of Sri Lanka’s east coast, paired with community focused sustainability activities.

The celebrations open with a special buffet of authentic Sri Lankan cuisine, followed by a street food festival showcasing regional snacks and traditional sweets rarely found on resort menus. A signature World Tourism Day mocktail and cocktail, created for the occasion, will be served through the day, while traditional Sri Lankan cultural dance performances bring the island’s heritage to life for guests.

Beyond the festivities, the resort has planned a tree planting activity with guests and a beach or park clean up campaign, both reflecting Sun Siyam Pasikudah’s ongoing commitment to responsible tourism along Sri Lanka’s northeast coast.