This PPT is on the PEST analysis of Sri Lanka

1. PEST
ANALYSIS
OF
SRI LANKA
SUBHANKAR DE
MBA 2ND SEM
NIT SILCHAR
1SUBHANKAR DE (MBA 2ND SEM, NIT SILCHAR)

2. ABOUT SRI LANKA
 Sri Lanka, formerly known as Ceylon, is an island country lying in the
Indian Ocean and separated from peninsular India by the Palk Strait.
 The island nation is located 30 km southeast of the southern coast of
India in the Indian Ocean, between the Laccadive Sea in the west and the
Bay of Bengal in the east.
 The nation has a total area of 65,610 km², with 64,740 km² of land and
870 km² of water.
 In 1948, after nearly 150 years of British rule, Sri Lanka became an
independent country.
 The country has been divided into nine provinces and subdivided into
25 district.
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3. CONTINUED……..
 The current population of Sri Lanka is 21 million.
 Colombo is the capital and the official languages spoken are Sinhala, Tamil
and English.
 The currency of Sri Lanka is Sri Lankan Rupee.
 According to the latest WHO data published in 2018 life expectancy in Sri
Lanka is 75.3 years.
 GDP in Sri Lanka is expected to be 90.60 USD Billion.
 Unemployment Rate in Sri Lanka is 16.60 % .
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4. Continued……..
 Ranil Wickremesinghe is the current Prime Minister of Sri lanka.
 Maithripala Sirisena is the President of Sri Lanka.
 Sri Lanka is ranked 100 among 190 economies in the ease of doing business.
The rank of Sri Lanka improved to 100 in 2018 from 111 in 2017.
Ranil Wickremesinghe Maithripala Sirisena
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5. HISTORICAL IMPORTANCE
 Tamils and Sinhalese are the two major ethnic groups In Sri Lanka. Sinhalese eternal conflict
with Tamils for power had been gathering strength since before independence.
 Post independence Sinhalese nationalism sought to curb the Tamil presence in education
and civil administration.
 As a result of open discrimination, in 1976 Liberation Tigers of Tamil Eelam (LTTE) was
formed to fight for Tamil rights and in 1983 Civil war started.
 The bilateral relations between India and Sri Lanka deteriorated in 1980’s with a rising of the
Tamil militant separatism in Sri Lanka.
 In 1987 with the objective of improving the ties, Indo-Sri Lankan Accord was signed between
India and Sri Lanka.
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6. CONTINUED…….
 India also deployed Indian Peace Keeping Force in Sri Lanka intended to
perform a peacekeeping.
 After two years of constant military engagement, the IPKF was
withdrawn as it failed to defeat LTTE.
 Finally, in 2009, 25 years of violence ended when Sri Lankan
government seized the last area controlled by Tamil Tiger rebels.
 Also, the relationship started deteriorating when India voted against Sri
Lanka in 2009, 2012 and 2013 at the US-sponsored UNHRC resolution to
investigate alleged human rights violations by the state against the Tamil
rebels.
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7. POLITICAL ENVIRONMENT
 Sri Lanka is a democratic republic with an Executive
Presidency based on the French Model .
 The head of the State and Government is the
President.
 The prominent political parties in Sri Lanka are The
United National Party, People’s United Front, United
People’s Freedom Alliance, etc.
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8. 8SUBHANKAR DE (MBA 2ND SEM, NIT SILCHAR)

9. ECONOMIC ENVIRONMENT
 Sri Lanka has been a priority destination for direct investment from India.
 India is among the top five foreign investors in Sri Lanka. The value of bilateral trade
increased from US$ 658 million in 2000 to US$ 3.6 billion.
 India and Sri Lanka also share the membership in other regional and multilateral trading
arrangements viz.
a) Asia Pacific Trade Agreement (APTA)
b) South Asia Free Trade Agreement (SAFTA) in the SAARC context,
c) BIMSTEC (Bay of Bengal Initiative for Multicultural Technical and Economic
Cooperation)
d) Global System of Trade Preferences (GSTP) and the World Trade Origination (WTO)
which were influential in strengthening and further advancing trade and economic ties.
9SUBHANKAR DE (MBA 2ND SEM, NIT SILCHAR)

10. CONTINUED…….
India is one of the leading investors in Sri Lanka with the presence of major Indian companies including:
CEAT Limited
 Indian Oil Corporation Limited
Neelkamal Plastics Limited
Gujarat Ambuja Limited
Bharti Airtel Limited
National Thermal Power Corporation
Indian Hotels Co. Limited
State Bank of India
Indian Bank
ICICI bank
10SUBHANKAR DE (MBA 2ND SEM, NIT SILCHAR)

11. CONTINUED…….
The Sri Lankan investors in India include :-
Aitken Spence Hotel Managements
Bank of Ceylon
Damro Furniture (Pvt) Ltd
DSI Tyre India (Pvt) Ltd
Hatton National bank
Senid Software (India) Pvt. Ltd
John Keells Logistics India Pvt Ltd
Regency International Clothing P Ltd
Sri Lankan Airlines Ltd
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12. SOCIO CULTURAL ENVIRONMENT
 The Indian Cultural Centre in Colombo actively Promotes
awareness of Indian Culture by offering classes in Indian Music,
Indian Dance, Hindi and Yoga.
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13. CONTINUED…….
 Buddhism is a connecting link between India and Sri Lanka on
religious lines.
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14. CONTINUED…….
 Education is another important area of co-operation between
India and Sri Lanka. India offers scholarship annually to deserving
Sri Lankan students.
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15. TECHNOLOGICAL ENVIRONMENT
 Sri Lanka is emerging as a global IT Business Process Outsouring (BPO)
destination. Sri Lanka has relatively low labour costs compared to other
BPO destinations.
 HSBC, Astron, Hellocorp, etc. have setup call centres in Sri lanka.
15SUBHANKAR DE (MBA 2ND SEM, NIT SILCHAR)

16. CONTINUED……
 The telecommunication, computer and information services
are key growth component within the services sector and
delivered steady growth in 2017.
 In 2017, the country initiated the process of adopting fifth
generation (5G) technology which will enable futuristic
technology applications using robotics and digital business
solutions.
16SUBHANKAR DE (MBA 2ND SEM, NIT SILCHAR)

17. CONTINUED……
In a move to counter China’s growing presence in Sri Lanka, the
Airports Authority of India wants to pick up a controlling stake in
Sri Lanka’s Mattala Rajapaksa International Airport. This will be
first time when India will own an airport outside India.
17SUBHANKAR DE (MBA 2ND SEM, NIT SILCHAR)

18. CONTINUED…….
India will invest in a port in Sri Lanka . Moreover once the energy
infrastructure is finalized in Trincomall, India will ensure that no
other country can use the harbour for military purposes.
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19. END OF PRESENTATION
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