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Five reasons why Sri Lanka needs to attract foreign direct investments

Tatiana Nenova's picture
Sri Lanka’s government has recognized the need to foster private-sector and beef up exports to attain the overarching objective of becoming an upper-middle-income economy.
Sri Lanka’s government has recognized the need to foster private-sector and beef up exports to attain the overarching objective of becoming an upper-middle-income economy.

To facilitate Foreign Direct Investment (FDI), Sri Lanka is launching this week an innovative online one-stop shop to help investors obtain all official approvals. To mark the occasion, this blog series explores different aspects of FDI in Sri Lanka. Part 2 will explore how the country can attract more FDI. Part 3 will relate how the World Bank is helping to create an enabling environment for FDI in Sri Lanka.

You may have heard that Sri Lanka is intent on drumming up more foreign direct investments up to $5 billion by 2020. At the same time, the government aims to improve the lives of Sri Lanka’s citizens by generating one million new and better jobs.
 
This isn’t a pipe dream. Thanks to its many advantages like a rich natural resource base, its strategic geographic position, highly literate workforce and fascinating culture, the island nation is ripe for investment in sectors such as tourism, logistics, information technology-enabled services, and high-value-added food processing and apparel.
 
What is foreign direct investment and why does Sri Lanka need it?
 
Very simply, foreign direct investment (or FDI) is an investment made by a company or an individual in a foreign country. Such investments can take the form of establishing a business in Sri Lanka, building a new facility, reinvesting profits earned from Sri Lanka operations or intra-company loans to subsidiaries in Sri Lanka.
 
The hope is that these investment inflows will bring good jobs and higher wages for Sri Lankan workers, increase productivity, and make the economy more competitive.  
 
Sri Lanka’s government has recognized the need to foster private-sector and beef up exports to attain the overarching objective of becoming an upper-middle-income economy.
 
Attracting more FDI can help achieve that goal and fulfill the promise of better jobs.
 
Here are five reasons why:

The 2018 Atlas of Sustainable Development Goals: an all-new visual guide to data and development

World Bank Data Team's picture
Download PDF (30Mb) / View Online

“The World Bank is one of the world’s largest producers of development data and research. But our responsibility does not stop with making these global public goods available; we need to make them understandable to a general audience.

When both the public and policy makers share an evidence-based view of the world, real advances in social and economic development, such as achieving the Sustainable Development Goals (SDGs), become possible.” - Shanta Devarajan

We’re pleased to release the 2018 Atlas of Sustainable Development Goals. With over 180 maps and charts, the new publication shows the progress societies are making towards the 17 SDGs.

It’s filled with annotated data visualizations, which can be reproducibly built from source code and data. You can view the SDG Atlas online, download the PDF publication (30Mb), and access the data and source code behind the figures.

This Atlas would not be possible without the efforts of statisticians and data scientists working in national and international agencies around the world. It is produced in collaboration with the professionals across the World Bank’s data and research groups, and our sectoral global practices.
 

Trends and analysis for the 17 SDGs

Why commodity prices are rising, in nine charts

John Baffes's picture
Commodity prices strengthened in early 2018, supported by supply and demand factors, including accelerated global growth, which has lifted demand for most industrial commodities, and supply constraints affecting others.

Chart 1: Commodity prices are forecast to rise across the board

The energy price index is anticipated to rise 20 percent in 2018, largely on strengthening of oil prices. The increase is a 16-percentage point upward revision from October 2017. Metal prices are projected to increase 9 percent in 2018 due to a further pickup in demand. Agricultural prices are forecast to gain more than 2 percent.
 
2018 commodity price rise forecasts (percent change from 2017 to 2018)
Source: World Bank

Investment in emerging and developing economies: Accelerating but still subpar

Dana Vorisek's picture

After a prolonged slowdown, investment growth in emerging markets and developing economies (EMDEs) picked up to 4.5 percent in 2017, and is projected to accelerate to 5.2 percent in 2018 and 2019 (investment refers to real gross fixed capital formation, public and private combined). Yet projected investment growth is below its long-term (1990–2017) average, inhibited by political uncertainty, trade risks, and expectations of rising interest rates. This will likely limit potential output growth and delay per-capita income convergence between EMDEs and advanced economies.

Energy prices advanced, fertilizer prices declined in April -- Pink Sheet

John Baffes's picture
Energy commodity prices gained 8.2 percent in April, led by a 40 percent increase in U.S. natural gas prices, the World Bank’s Pink Sheet reported.

Non-energy prices advanced 1.8 percent while agricultural prices increased 1.7 percent on higher prices for wheat (up 11 percent), rice and cocoa (4 percent rises each), soybean meal and tea (4 percent gains each). Fertilizer prices decreased 0.7 percent, led by a 5 percent drop in urea.

Metals prices gained 2.3 percent, led by gains in aluminum (up 9 percent) and nickel (4 percent rise).

Three Opportunities and Three Risks of the Belt and Road Initiative

Michele Ruta's picture

The Belt and Road Initiative (BRI) is an ambitious effort to deepen regional cooperation and improve connectivity on a trans-continental scale. While the scope of the initiative is still taking shape, the BRI consists primarily of the Silk Road Economic Belt, linking China to Central and South Asia and onwards to Europe, and the New Maritime Silk Road, linking China to the nations of South East Asia, the Gulf Countries, North Africa, and on to Europe. Six other economic corridors have been identified to link other countries to the Belt and the Road.

Global inflation: Stubbornly low, but subject to upward pressures

Marc Stocker's picture

Global inflation has been trending up over the last two years, but is still subdued despite a broad-based recovery in economic activity. The reasons for this include the lingering impact of the 2007-2009 financial crisis on price and wage formation in advanced economies, as well as downward pressures associated with rapid technological changes and foreign competition.

The future of transport is here. Are you ready?

Stephen Muzira's picture
Photo: Max Talbot-Minkin/Flickr
Technology is transforming transport with a speed and scale that are hard to comprehend. The transport systems of tomorrow will be connected, data-driven, shared, on-demand, electric, and highly automated. Ideas are moving swiftly from conception, research and design, testbed to early adoption, and, finally, mass acceptance. And according to projections, the pace of innovation is only going to accelerate.

Autonomous cars are expected to comprise about 25% of the global market by 2040. Flying taxis are already tested in Dubai. Cargo drones will become more economical than motorcycle delivery by 2020. Three Hyperloop systems are expected by 2021. Maglev trains are already operating in Japan, South Korea, and China, and being constructed or planned in Europe, Asia, Australia, and the USA. Blockchain technology has already been used to streamline the procedures for shipping exports, reducing the processing and handling times for key documents, increasing efficiency and reliability,

Amp up your 2018 Spring Meetings experience

Bassam Sebti's picture


Our 2018 Spring Meetings is just around the corner and it’s time to get organized. Mainstage speakers include representatives from top-notch institutions such as LinkedIn, Oxford University, Financial Times, Brookings Institution — in addition to influencers Bill Gates and Jeff Weiner.

Connect, engage and watch to take full advantage of everything the #WBGMeetings has to offer. 

Sustainable Mobility for All: Bringing the vision to life

Nancy Vandycke's picture
Photo: Imedagoze/Flickr

Making sustainable transport a reality requires a coordinated strategy that reflects the contributions and various interests of stakeholders around the world.
 
The Sustainable Mobility for All partnership has a critical part to play in kickstarting this process. The initiative is working to raise the profile of sustainable mobility in the global development agenda and unite the international community around a vision of transport that is equitable, efficient, safe, and green.
 
The issue of mobility and sustainability resonates well with countries’ concerns. The recent UN Resolution focusing on the role of transport and transit corridors in sustainable development demonstrates the continuing importance attached to the issue of transport and mobility by national governments around the world.

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