Queries on tax and financial implications by foreign investors increase
More and more foreign investors are requesting reports on Sri Lanka’s tax and finance viability for their investments, top consultancy firms said.
“The frequency of foreign investors requesting feasibility and tax and financial implications about investments in Sri Lanka has increased,” a top official from a tax consultancy firm told The Sunday Times Business on Wednesday.
An official from a second tax consultancy firm agreed, noting that now that political stability is intact and things are settled in the country, more queries are trickling in. “By next year, some investments may come in,” he added.
Some hotels that were in the market to be sold have been revamped and are resuming operations, hotel owners said. This is mainly to do with the increase in tourism numbers, which has given them new impetus to go on with their operations.
Sri Lanka surpassed 2 million tourist arrivals on Thursday, data from the Sri Lanka Tourism Authority (SLTDA) showed. In the first half of December, the country saw 97,115 visitors, with an average of about 6,474 arrivals per day, an increase from November’s 6,138 daily arrivals. Stock market analysts noted that hotel stocks have been rising in the past couple of weeks and there is a lot of potential in hotel operations.
“Now there is a lot of demand for hotels with tourism numbers on the rise.”
A businessman noted that investments from neighbouring India seem positive in the next year after President Anura Kumar Dissanayake’s visit recently.
In November, the Asian Development Bank pledged support for investment in Sri Lanka due to rising foreign interest following government financial reforms. In a meeting led by ADB’s Regional Head of Private Sector Development, Takeo Koike, and Senior Additional Secretary to the President, G.N.R.D. Aponsu, ADB highlighted foreign investors’ enthusiasm for various sectors. Discussions included opportunities in climate change, agriculture, and energy sectors, focusing on direct investments and public-private partnerships. The donor agency pledged commitment to collaborating with Sri Lanka for sustainable investments aligned with development goals.
Several businessmen noted that the business sentiment is rapidly improving. They pointed out that perennial issues that the country has had for 70-plus years can be eliminated by a different system.
“Indicators are showing confidence. There is an improvement in the share index as well as the turnover, which is a big win for business. Going forward, many investments are likely to come if this confidence continues,” one businessman said.
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