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Sri Lanka investments could rise with transparency: IMF

June 10, 2011 (LBO) - Sri Lanka may see a more investments, if perceptions about transparency are addressed and there is clarity on the role of the state in the economy, an International Monetary Fund mission said.
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"Increased transparency and improved governance could also bolster market confidence and lead to higher investment," an IMF mission said in a statement after a fact finding mission to Colombo.

"However there is a perception that the government is sending some potentially conflicting signal about the role of the private sector in economic development.

"This could be deterring investment and should be addressed.


IMF gets the views from a cross section of people including civil society and private sector in addition to state officials.

IMF mission chief Brian Aitken said recent investments in banks by the Central Bank using funds of the Employees Provident Fund to buy stocks in banks had raised fears that the state is controlling the banks.

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"To the extent that the government can make clear its intention, that also creates more certainty for private sector investment, both foreign and domestic," Aitken said.

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Two years after the war Sri Lanka is getting relatively small amount

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