Monday, December 20, 2010

Sri Lanka Debt

Shouldn't we be looking at Sri Lankan Rupee denominated debt facilities?

The country is experiencing solid growth as peace appears secure for the near future. Tourism is picking up at a rate of knots; inward investment is expanding, everyone from the Chinese to the World Bank is supporting the replacement of infrastructure; the currency looks fairly valued with upside potential; inflation though a worry doesn't appear to be running out of control (and where in the world isn't it a worry?); and interest rates look very juicy in international terms.

Sure there are issues that have to be addressed, but any emerging markets/frontier markets investor would be wise to look in this direction.

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