HSBC on Post-War Sri Lanka May 30, 2009Posted by ravana in Uncategorized.
HSBC in an economic report compiled by their Singapore Branch on Sri Lanka, is very positive about the investment prospects in Sri Lanka. The report (link below) has lots of useful graphs and figures, which is probably one of the best summaries of the econ0mic situation here that I have seen recently.
Over the last 26 years massive resources
have been diverted to meet the needs of the
military. In chart 3 we have shown defence
expenditure as a percentage of GDP going
back to 1991 – on average the country has
spent more than 4% of GDP every year on
equipment/artillery purchases and salaries of
military staff. As a means of comparison
Pakistan has been spending roughly 3% of
GDP since 2000. No doubt both countries
needed this expenditure but this does
emphasise the high financial cost of war not
to mention the loss of life and high quality
labour on account of emigration. Over time
we think there is scope to cut back on military
expenditure, however in the near term
security concerns and counter-insurgency
measures would probably remain.