Sri Lanka is poised for a period of stable economic growth following years of crisis, according to Asia Frontier Capital (AFC) Fund Manager Ruchir Desai. Writing in International Banker on September 16, Desai said political stability, reforms, and attractive valuations make the country a compelling investment opportunity.
He noted GDP growth of 5% in 2024 and 4.9% in the second quarter of 2025, driven by consumption, infrastructure spending, and a strong tourism rebound. The Colombo Stock Exchange has surged nearly 200% in US dollar terms since early 2023, with confidence reinforced by the 2024 election victories of Anura Kumara Dissanayake and the NPP.
Desai credited reforms, IMF support, and Central Bank policies for stabilising the economy, adding that opportunities now lie in tourism, logistics, and leveraging Sri Lanka’s proximity to India.
