BMI View: We expect Sri Lanka s construction industry to grow by -.- in ---- and ----, up from -.- in ----, as investors return to Sri Lanka amid a more stable political environment. The government s commitment to renegotiate mutually beneficial agreements with Chinese developers (on key projects such as the Colombo International Financial City) will instil confidence and re-attract Chinese investors who were spooked by the policy U-turn in March ---- after President Sirisena took office in early ----. ...BMI View: We expect Sri Lanka s construction industry to grow by -.- in ---- and ----, up from -.- in ----, as investors return to Sri Lanka amid a more stable political environment. The government s commitment to renegotiate mutually beneficial agreements with Chinese developers (on key projects such as the Colombo International Financial City) will instil confidence and re-attract Chinese investors who were spooked by the policy U-turn in March ---- after President Sirisena took office in early ----. Sri Lanka s Urban Development Authority, the Ministry of Megapolis and Western Development and China Harbour Engineering Company have signed a tripartite deal to replace a controversial agreement to build a port city. ...The project involves upgrading the city s water system to ensure continuous day and night water supplies, as well as construction of a sewer system in unserved areas of Kirulapone. Work will be carried out by the Colombo Municipal Council
...We believe efforts to develop the country s tourism sector will also provide a boost to non-residential construction, with the tourism sector becoming increasingly important to the country s economic well-being. Despite continued political uncertainty surrounding the general election in the island-nation, there has been little political and social unrest, which has benefited the service sector. ...We believe efforts to develop the country s tourism sector will also provide a boost to non-residential construction, with the tourism sector becoming increasingly important to the country s economic well-being. Despite continued political uncertainty surrounding the general election in the island-nation, there has been little political and social unrest, which has benefited the service sector. This has allowed Sri Lanka s tourism sector to continue expanding, with tourist arrivals growing by -- y-o-y in ---- to nearly -.-mn visitors. ...The two Asian giants combined accounted for one-quarter of total tourist arrivals in ----.
...Despite a deterioration in Sri Lanka s public finances, we believe that the ---- budget nonetheless demonstrates the government s focus on infrastructure development and should be marginally supportive of growth. Based on the budget, allocation of funds for public investments has increased to -- from -- in ----, which amounts to approximately -.- of the country s GDP. ...
