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ANALYSIS ON ATTRACTING FDIS INTO SRI LANKA

By DIMANTHA MATHEW Student ID: 200909026 INTERNATIONAL BUSINESS

IMPERIAL INSTITUTE OF HIGHER EDUCATION Validated Centre for UNIVERSITY OF WALES UK

Date: 03.12.2010

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TableofContents

INTRODUCTION .................................................................................... 6 CHAPTER 1: OVERVIEW ON FOREIGN DIRECT INVESTMENTS ............................................................ 7

1.1 What is Foreign Direct Investments ................................................................. 7 1.2 Methods and Types of FDIs ............................................................................. 8 1.3 Benefits of FDIs ............................................................................................... 9

CHAPTER 2: ATTRACTING FOREIGN DIRECT INVESTMENTS .......................................................... 13

2.1 Political and Economic Stability .................................................................... 13 2.2 Fiscal and Financial and Other Incentives ..................................................... 15 2.3 Infrastructure Required .................................................................................. 15 2.4 Other Requirements ........................................................................................ 16

CHAPTER 3: SRI LANKA AND FOREIGN DIRECT INVESTMENTS .......................................................... 17

3.1 Global FDI Outlook ....................................................................................... 17 3.2 Sri Lankas Position ....................................................................................... 19 3.3 The influence from SAARC Region .............................................................. 22 3.4 Sri Lankas Advantages over India ................................................................ 24

CHAPTER 4: CONCLUSION ............................................................ 26 REFERENCES ...................................................................................... 27

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INTRODUCTION

The context of the report analyzes and evaluates foreign direct investments and its impact on Sri Lanka.

The report defines and understands foreign direct investments and highlights the benefits of these investments to a country like Sri Lanka. It also identifies the relevant requirements and the necessary infrastructure that needs to be in place to attract FDIs.

The study area recognizes Sri Lankas position in attracting FDIs and the impact of the SAARC region. Further consideration have been enlightened in relation to India being a BRIC country, the effect it would have on Sri Lanka and the comparative and absolute advantages Sri Lanka would have over India.

Research for this report has been conducted via gathering of data from books, journals, articles and websites.

With the view of gathering further insights, an interview was conducted with Prof, Indraratne, a well renowned and respected economist in the country.

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CHAPTER 1 OVERVIEW ON FOREIGN DIRECT INVESTMENTS

1.1

What are Foreign Direct Investments?

Foreign direct investment, in its classic definition, is defined as a company from one country making a physical investment into building a factory in another country. The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment. Graham, J.P. and Spaulding, R. B. (2004)

FDI or Foreign Direct Investment is any form of investment that earns interest in enterprises which function outside of the domestic territory of the investor. For an investment to be regarded as an FDI, the parent firm needs to have at least 10% of the ordinary shares of its foreign affiliates. The investing firm may also qualify for an FDI if it owns voting power in a business enterprise operating in a foreign country. (www.economywatch.com)

Hill and Jain (2009) state that, foreign direct investment occurs when a firm directly facilitates to produce and / or market a product in a foreign country.

Once an enterprise enters another country for the above purpose or in other undertakes an FDI such a firm could be recognized as a multinational enterprise. Coca Cola Company which is one of the biggest multinationals in the world operates in over 200 countries.

FDIs could be classified as horizontal and vertical FDIs. Horizontal FDI is where the firm invests in the same industry as in the home country. Firms prefer establishing operations through FDIs compared exporting or licensing due to different reasons.

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The main reason for this question is transportation costs, especially when it is a long distance the high transportation cost added on to the production cost makes it commercially unprofitable.

Further the high importation taxes in countries that the products are exported to may act as an impediment for exportation of the products. Also the parent may not want to license because they may loose their edge from technological and / or market and / or any other field.

In addition companies may also prefer horizontal FDIs due to strategic reasons such as to take advantages of oligopoly markets.

Vertical FDIs has two forms, namely, backward vertical FDIs and forward vertical FDIs. Backward vertical FDI is where the investment is made in company that could provide the inputs for the existing business. Forward vertical FDI is where investment is made in a firm which could sell the products that are produced by the existing firm.

1.2

Methods and Types of Foreign Direct Investments

According to CUTS Centre for International Trade, Economics & Environment, firms may invest as FDIs in 3 different methods.

First it could be through equity capital where the firm purchases shares of a company of another country. Secondly the foreign firm may reinvest its share of earnings that are not remitted back as dividends in the host country itself. Finally FDIs may be provided in the form of working capital where the parent company may provide short term or long term borrowings to the firm in the host country.

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Hill and Jain (2009), identifies two main types of FDIs. One is Greenfield investment which is where a firm would sets up operations in a foreign country. A perfect example would be Nestle starting up its operations in Sri Lanka or Unilever setting up operations in Sri Lanka.

The second type of FDIs would be where a firm acquires or mergers with an entity in a foreign firm. Al-Futtaim

Engineering, a Dubai based conglomerates acquisition of the Singaporean Group retailer, and the
(Fig: 1, Quarterly FDI inflows of 36 selected economies, Source: UNCTAD, 2010)

Robinson

acquisition of the Sri Lankan based automobile dealer, Associated Motorways would represent examples of FDIs through acquisition.

1.3

Benefits of Foreign Direct Investments

Foreign Direct Investment to a country would lead to a number of benefits. The benefits could be listed down as follows:

1.3.1 Resource Transfer Effects

FDIs into a country positively affects the country as the foreign company is likely to introduce new capital, technology and management resources which would have not been available in the country.

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Capital is one of the main resources that would be introduced by a firm undertaking FDIs. According to Hill and Jain (2009) due to the size and financial strength of these large multinationals they may have the financial resources which the country might not have. The funds that are available to this firm, could be internal company funds or funds borrowed through capital markets which would be much more easier for these firms than the firms in the host nation.

The technological progress is also a major advantage for the host nation. It would assist to increase productivity of the firm, thereby leading to economic growth. The introduction of new technology may even revolutionise the industry leading to a rapid technological advancement.

This was quite apparent in the telecom sector in Sri Lanka where Dialog and Mobitel were competing on the introduction of new technology.

Management resources another advantage for the host country, as foreign managers trained in the latest management techniques would help to improve efficiency and productivity of the organization.

These foreign managers are likely to introduce the latest management techniques to our skilled and unskilled labour whom have been recruited from the home country. Thereby the knowledge on the latest management techniques would trickle down work force of the host nation.

1.3.2 Employment Effects

With FDIs the creation of new jobs through opening of new companies or via expansion of the existing firms should be identified as a major advantage for the host nation. As a result the demand for labour increases in the host nation.

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The increase in demand for labour would lead to wage hikes as well. In a country like Sri Lanka this would further reduce the unemployment level and also lead to a decline in the poverty level in the country.

In addition to the creation of direct employment opportunities the setting up of new ventures would give rise to employment opportunities indirectly as well with the creation or expansion of local suppliers.

1.3.3 Balance of Payments Effects

FDIs would positively impact the balance of payments position firstly with initial capital inflows which benefits the capital account of the host nation. Secondly if the goods or services produced through the FDI are a substitute for imports it would improve the balance of payments of the host country.

Thirdly the host nation also benefits if the if the foreign subsidiary is a export oriented company which increase the overall exports of the host country improving the balance of payments position.

Stretchline company in Sri Lanka is a joint venture between Stretchline Holdings, which is a foreign multinational and MAS which uses the Sri Lankan subsidiary to export the production all around the world improving Sri Lankas balance of payments position.

As a result for a country like Sri Lanka FDIs play a vital role with Sri Lanka constantly having a current account deficits. Not only does initial capital inflow help the position but depending on how the cash is spent it may lead to increase in exports or a decrease in imports if the product or service is a substitute of an import.

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1.3.4 Effect on Competition and Economic Growth

Hill and Jain (2009) recognise that FDIs in the form of Greenfield investments would increase the number of players in the market which would give rise to higher level of competition. This may assist upgrading of the quality level of the products in the whole market. Further it may lead to a decline in prices in the consumer market leading increase in economic welfare for consumers.

With the increase in the number of players in the telecom sector in Sri Lanka, a drastic reduction of call charges were observed which was beneficial for the consumers leading a strong growth in the call volumes in the long run.

Further the decline in communication charges helped the long term prospects of the economy leading to economic growth. Communication requirement is a vital aspect of any economy.

In addition FDIs could lead to growth in productivity, innovations and introduction of new products and processes which improves the economic growth of a country.

1.3.5 Effect on Government Revenue

Another major aspect of FDIs mainly in the form of Greenfield investments is its impact on tax revenue. These investments would enhance the business activities of the country leading increase in tax revenue for the government.

Investments in the form of Mergers and Acquisitions would help this aspect if the acquirer manages to increase profitability or expand the business operations leading to increase in the business activity where again it would lead increase in tax revenue.

This is one of the major reasons for successive Sri Lankan governments to provide various programs to attract FDIs to the economy.

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CHAPTER 2 ATTRACTING FOREIGN DIRECT INVESTMENTS

There are number of essential requirement that a country needs to focus on if it is interested in attracting foreign direct investments. In a foreign investors perspective he or she would be looking at different aspects in accessing whether a country would be suitable for investment. It will also depend on the companys risk appetite and type of concessions that they perceive.

2.1

Political and Economic Stability

Political stability is one of the primary concerns of foreign investors. Political change or government changes would generally bring changes in policy and strategy for the particular country. If the particular government has a completely new ideology it may change long term vision for the country as well.

This is a significant risk for the foreign investor because if the investor undertakes FDIs in the country it would be for a longer term. If there is political instability the business environment in that country will not be great as there would continuous changes in rules, procedures and policies.

There is also a chance of government which is not foreign investor friendly. In such a situation restrictions may be imposed on foreign ownership and foreign investments.

The report released by the Organization for Economic Co-operation and Development (OECD) (2001), Anabel Gonzlez highlighted the case of Intel in Costa Rica. According to the case Intel has short listed 4 countries Brazil, Chile, Costa Rica and Mexico in order to locate a semiconductor assembly and testing plant.

Costa Rica was chosen over the other 4 countries primarily because of its long history of political and social stability. In addition to this the government of Costa Rica has

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lso ary ities within a given tim and othe me er al assured all necessa permits and authori sp pecific conce essions.

(Fig: 2, 2010 FDI Confiden Index, Sou 0 nce urce: Kearney, 2010)

Similarly eco onomic stability for a bu usiness is par ramount. If t country d the does not hav ve croeconomic and regula atory framew work the ris for a for sk reign investo or a stable mac would be high. In a coun like Zim w ntry mbabwe wher the countr is going t re ry through hype er in nflation the investment o a foreign investor wo i of ould be wort thless in a matter of day m ys or months. r

A foreign inv vestor would always be l d looking at th long term value of the assets in that he e co ountry once an investm ment is made. In addition he would be consideri the retur n ing rn on investmen from that asset. n nt a

Therefore in o T order to attra FDIs a co act ountrys pol litical and macro econom condition mic ns sh hould be stab foreign investor frien ble i ndly.

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2.2

Fiscal and Financial and Other Incentives

Foreign firms considering FDIs would be looking at the incentives offered by that particular country very seriously as the companies would want to maximize their return on investment and to recover their investment as soon as possible. In providing incentives for FDIs there are different types of incentives governments can offer.

Fiscal incentives would amount to the reduction in taxes for FDIs and tax reductions available for the specific industry and any other incentives on taxes.

Governments in order to promote FDIs could offer different types of financial incentives. Mehta and Dugal (2003) of CUTS Centre for International Trade, Economics & Environment identifies that these financial incentives are offered as government grants, credit subsidies, duty free import of materials, government equity participation and insurance at preferential rates.

Setting up of free trade zone and export processing zones are also an attraction for foreign investors as all types of facilities and incentives are already provided t these zones. Further easy access routes to the ports and air ports also may be creates specially for these zones.

2.3

Infrastructure Required

Infrastructure facilities of a country plays a vital role in supporting FDIs and business as a whole. Basic infrastructure such as electricity, water, road network and communication network is required at least in the areas where FDIs are attracted.

If these basic facilities are not available and the trouble to make them available is high, then foreign investors would be less interested in the location. Even things such as storage facilities, cost involved in doing business including customs clearing and

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investment approvals and even proper regulatory and legal framework covering intellectual property rights are the other supporting areas relating to infrastructure that gains foreign investor attention.

Further the level and type of natural and human resources would also be important criteria to concentrate. A high concentration of high skilled labour force would be a big attraction for the BPO ventures searching FDI opportunities. Certain unique natural resources would also be important for a country in promoting FDIs.

2.4

Other Requirements

The supporting services in an economy would create the edge for a in attracting FDIs. Hassel free procedure to start up businesses and to do business creates an untold advantage.

Further a healthy banking system which are well capitalized and governed by proper procedure is very important for a economy and creates an investor friendly atmosphere in the country.

Having a large domestic market is in itself a attraction for FDIs, but the governments should concentrate to focus the FDIs into areas that require foreign investment and their skills and knowledge.

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CHAPTER 3 SRI LANKA AND FOREIGN DIRECT INVESTMENTS

3.1

Global FDI Outlook

With the global economic crisis in 2008 sharp decline in global trade was witnessed leading to a significant reduction in FDIs.

The United Nations Conference on Trade and Development (UNCTAD) estimates that the global foreign direct investments as at 2008 stood at US $ 1.7 Trillion which was a decline of almost 14%. The UNCTAD states that FDIs in 2009 dropped as much as 39% to US $ 1 Trillion.

(Table: 1, Global FDI Flows, Source: UNCTAD, World Investment Report, 2009)

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FDI Inflows and Cross Border M&As

(Table: 2, FDI Inflows and Cross Border M&As, Report, 2009)

Source: UNCTAD, World Investment

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Asean Investment Report 2009 identifies that the decline of FDI flows in 2008 has been uneven where the developed countries have experience a significant dip amounting to almost 29% while the developing countries across all regions have been resilient recording a growth rate of 17%.

This reflected a decline of cross border Acquisitions project Mergers and a and

Greenfield rise in

while

divestments were apparent.

However in 2009, UNCTAD notes that the decline in FDIs were widespread affecting all regions. The FDIs of developed nations continued with the

downfall as FDIs dropped a further 41%. In contrast to 2008, in 2009 the FDIs to the developing and transition

economies registered a decline of 39%.

(Fig: 3, Value and Number of Cross Border M&As and Greenfield FDI Projects, Source: UNCTAD, 2010)

UNCTAD reports that cross border Mergers and Acquisitions fell almost 66% while the international Greenfield projects dipped 23%.

3.2

Sri Lankas Position

With Sri Lanka adopting market oriented economic policies a couple of decades ago a steady growth in foreign inflows were seen. From time to time Sri Lanka has

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liberalized its restrictions in order to create an investor friendly atmosphere to the foreign investors.

Currently Sri Lanka has no restrictions on the repatriation of earnings, profits, and capital proceeds (http://www.tradechakra.com). Attractive fiscal incentives are granted to selected investments and industries. Sri Lanka awards attractive packages for extensive use of foreign capital or sophisticated technology, in export-oriented manufacturing, and in large- scale infrastructure projects.

In different era in the last 3 decades Sri Lanka has created 6 free trade zones consisting of Katunayake (1978), Biyagama (1986) Koggala (1991) Pallekelle (1996) Mirigama (1997) and Malwatte (1997) in which Sri Lanka accommodates over 155 foreign export oriented firms.

With these incentives Sri Lanka managed to grow its FDIs gradually over the last decade with the FDIs peaking in 2008 amounting to US $ 889 Million.

In 2009 Sri Lanka ended its 3 decade long war giving rise to thoughts of brighter economic conditions. Making this a reality the macro economic conditions within the country improved significantly led by low inflation and interest rates, sharp increase in foreign exchange reserves, strong growth in consumer demand.

Sri Lanka was granted the IMF standby facility in mid 2009 as well amounting to US $ 2.6 Billion. In addition Sri Lanka successfully completed US $ 500 million Eurobond issue in October 2009 and US $ 1 Billion Sovereign Bond issue in September 2010 which were overwhelmingly oversubscribed indicating high global investor confidence.

However with the global downturn despite the above mentioned developments FDI figures started witness a drastic decline from 2009. In 2009 FDIs fell 32% to US $ 602 Million. With the recessionary environment continuing in the world Sri Lankas

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FDIs continued to decline in 2010 as well. For 2010 1st FDIs declined 16.8% to US $ 208 Miilion compared to US $ 250 Million in 1st half of 2009.

In 2010 the telecom sector continued to lead the way with FDIs amounting to US $ 85m and the manufacturing sector following by attracting FDIs of US $ 56 Million.

(Table: 3, FDI Overview, Source: UNCTAD, World Investment Report, 2010)

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Economy Azerbaijan Finland Germany Spain Greece SriLanka Lithuania UnitedStates Indonesia Iran,IslamicRepublicof Bangladesh

InwardFDIPerformance 2007 2008 2009 140 135 111 68 139 112 107 127 113 76 59 114 132 118 115 118 108 116 65 69 117 116 99 118 120 109 119 133 130 120 130 115 121

Economy Tajikistan Nicaragua SierraLeone Mozambique Yemen SriLanka UnitedRepublicofTanzania Sudan Bangladesh Myanmar Zambia

InwardFDIPotentialIndex 2007 2008 2009 111 112 109 113 122 114 110 115 116 116 119 117 117 118 121 119 118 120 114 121 126 122

(Table: 4, Inward FDI Performance & Inward FDI Potential Index, Source: UNCTAD, World Investment Report, 2010)
Crossbordermergerandacquisitionoverview,19952009(MillionsofDollars) Sales(net) Purchases(net) 19952005 2007 2008 2009 19952005 2007 2008 2009
(Annualaverage) (Annualaverage)

Region/economy SriLanka Memorandum India Maldives SouthAsia AsiaandOceania Developingeconomies World

52 584 942 19,142 40,624 357,132

6 4,405 5,371 71,657 100,381 1,022,725

370 10,427 3 12,654 68,167 104,812 706,543

36 6,049 6,094 38,295 39,077 249,732

612 620 18,927 25,868 357,132

12 29,083 29,096 94,743 144,830 1,022,725

6 13,482 13,488 95,167 105,849 706,543

291 291 67,534 73,975 249,732

(Table: 5, Cross Border M&A Overview, Source: UNCTAD, World Investment Report, 2010)

3.3

The influence from SAARC Region

De Mel (2010) highlights that; South Asia has been looking at regional economic integration since early 1990s. The countries agreed to sign South Asian Preferential Trade Agreement (SAPTA) in 1995. After signing of SAPTA, the idea of South Asian Free Trade Agreement (SAFTA) emerged in 1996. However the talks came to a deadlock with India and Pakistan competing with nuclear tests in 1998.

Sri Lanka has signed bilateral agreements for free trade with India which is known as Indo-Sri Lanka Free Trade Agreement (ILFTA). Following this in 2005, Sri Lanka signed a free trade agreement with Pakistan, identifies as the Pakistan-Sri Lanka Free Trade Agreement (PSFTA).

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Thereby Sri Lanka has already signed agreements for free trade with both the major economies in the region. As a result Sri Lanka, being a small country is at a major advantage due to these agreements. These agreements would benefit Sri Lanka immensely in attracting FDIs.

Sri Lankas trade with over the years have favoured India and before the signing of the FTA in 1999 import to export ratio with India was as high as 10.5:1. This was not compensated by the investment flows either where FDIs from India in 1998 stood at US $ 2.5 Million accounting for only 1.3% of FDIs.

With the ILFTA in 1999, things took a dramatic turn with exports from Sri Lanka rising faster than the imports from India significantly reducing the trade deficit where in 2006 the import to export ration declining to 4:1. Similar effect was seen in the FDIs from India as well where the cumulative FDIs from India amounting to US $ 191 Million which accounts for 8.3% of the total FDIs received by Sri Lanka. (De Mel, 2010).

De Mel (2010) explains that though PSFTA was implemented in 2005 is yet not fully operational and the complete tariff liberalization was supposed to be in 2010. However so far the Sri Lankas side of the bargain has not been positive as the higher focus seems to be on ILFTA.

Both India and Pakistan are interested in extending the FTA agreements into Comprehensive Economic Partnership Agreement (CEPA). The CEPA agreement with India to be signed in July 2008, but however was delayed.

If Sri Lanka goes ahead to sign the CEPA agreements with both India and Pakistan, Sri Lanka would be at a greater advantage in attracting FDIs. Already Sri Lanka possesses and advantage with the FTAs, but the CEPA would make Sri Lanka a greater attraction.

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Since Sri Lanka lacks the critical mass required by global markets Sri Lanka should push the region through SAARC to build a regional positioning to attract the FDIs. Sri Lanka needs to focus on becoming the entry point or the access point to the region. Therefore the focus needs to be on becoming the hub of South Asia. Thereby Sri Lanka would be positioned in a much more attractive way in order to win FDIs.

For example Singapore plays such an important role in South East Asian region where it acts as the hub, where Singapore operates as the intermediary within the region and exports high value goods within and outside the region. Singapores open economy, efficient trade handling and marketing capability give it the edge over other economies in the region. Further the collective action under ASEAN has helped significantly boost trading activities in the region and has made the region more attractive for FDIs. (www.mtiworldwide.com)

This is a good strategy Sri Lanka and the region to adopt where Sri Lanka needs to work closely with the countries in the region building up relationships and developing the FTAs into CEPAs which would give the opportunity for Sri Lanka to be the intermediary or hub for the South Asian Region.

3.4

Sri Lankas advantages over India

With India being one of the BRIC countries there is a natural tendency for foreign investors would be choosing India mainly due to Indias large domestic market.

Despite abovementioned factor there are a number of other factors that gives Sri Lanka comparative advantage over India and in certain instances Sri Lanka would have an absolute advantage over India as well.

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With Sri Lanka having signed FTAs with both India and Pakistan clearly amounts to an absolute advantage Sri Lanka to attractive as a FDI destination. This would give the opportunity for any business tap both Indian and Pakistani markets through Sri Lanka.

Further Pakistan has signed an FTA with China. Sri Lanka could convert this to a strength where any business in Sri Lanka could tap the Chinese market as well through Pakistan. This would mean that any business would have the opportunity to tap India, Pakistan and China through these FTAs.

Thereby it could stated that Sri Lanka has an absolute advantage over India with availability to tap 3 large markets through FTAs.

Sri Lanka is located in a geographically strategic location which the centre separating the East and the West. Over 200 ships pass the southern Sri Lanka each day. Due to this strategic location Sri Lanka could be promoted as a transportation hub. This would again give Sri Lanka an absolute advantage over India when it comes transporting goods.

Sri Lanka would be an attractive and ideal location for any business having exports and imports from and to all round the world. It is a great opportunity for most of the multi nationals.

Further companies providing transportation and transportation services would clearly prefer Sri Lanka over India due to its strategic location. With the Hambantota port opening the opportunity has become far more attractive.

Sri Lanka would have a comparative advantage over India when it comes to tea due to its high quality. Thereby for large tea companies round the world, Sri Lanka would be a very attractive destination with its brand image on high quality tea.

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CHAPTER 4 CONCLUSION

FDIs are one of the most important parts of an economy. However, despite being an attractive destination for FDIs, the amount of FDIs has declined during the past 2 years.

Though this could be attributed to the global recession, it is necessary to note that Sri Lanka has not been marketed signify its true potential to the world. This is a major disadvantage for the country.

With the large number of infrastructure projects that take place in the country the problem of the deficiency proper transportation network within the country os slowly fading away.

However Sri Lanka still takes almost 3 years to approve an FDI and by the time approval is granted they have found alternative locations. This is a major drawback for the country.

In order to deal with this issue the Government now is planning to bring in new legislation to simplify and fast track the process.

By solving these deficiencies Sri Lanka should look to market itself highlighting its assets such as the strategic location and FTAs. Further Sri Lanka should push the regional organization, SAARC, to promote the regional marketing in order to attract FDIs to the region.

These measures are likely to improve Sri Lankas image and attract FDIs at a faster pace into Sri Lanka.

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REFERENCES

Anabel Gonzlez (2001), Key drivers for investing in Costa Rica: The Intel Experience, Global Forum on International Investment, OECD, Organization for Economic Co-operation and Development

Asean Investment Report 2009, Sustained FDI Flows Dependent on Global Economic Recovery, Asean Publications

De Mel, Deshal (2010), Bilateral Free Trade Agreements in SAARC and Implications for SAFTA, Chapter 4 of Promoting Economic Coorperation in South Asia : Beyond SAFTA, edited by Ahmed, S., Kelegama, S. and Ghani, E., Sage Publications, New Delhi

Foreign Direct Investment (FDI), http://www.economywatch.com/foreign-directinvestment/, Accessed on 03rd December 2010

Graham, J.P. and Spaulding, R. B. (2004), Understanding Foreign Direct Investments, JPG Consulting, http://www.goingglobal.com/articles/understanding_foreign_direct_investment.htm, Accessed on 03rd December 2010

Hill, C.W.L. and Jain, A.K. (2009), International Business : Competing in Global Marketplace, 6th Edition, Tata Mcgraw-Hill Publishing, New Delhi

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Mehta, P. S. and Dugal, M. (2003), ABC of FDI : Monographs on Globalisation and India Myths and Realities, #3, CUTS Centre for International Trade, Economics & Environment, CUTS, Jaipur, India

MTI Consulting, "SAARC can benefit from a regional investment and supply chain strategy", www.mtiworldwide.com, www.mtiworldwide.com/index.php/component/k2/item/download/13, on 03rd December 2010 Accessed

Trade Chakra, FDI in Sri Lanka, http://www.tradechakra.com/economy/srilanka/fdi-in-sri-lanka-337.php, Accessed on 03rd December 2010

United Nations Conference on Trade and Development (UNCTAD), Global and Regional FDI Trends in 2009, Global Investment Trends Monitor, No. 2, Geneva: 19 January 2010

United Nations Conference on Trade and Development (UNCTAD), Second and Third Quarters of 2010, Global Investment Trends Monitor, No. 4, 14 October 2010

United Nations Conference on Trade and Development (UNCTAD), World Investment Report 2009, www.unctad.org/fdistatistics, Accessed on 03rd December 2010

United Nations Conference on Trade and Development (UNCTAD), World Investment Report 2010, www.unctad.org/fdistatistics, Accessed on 03rd December 2010

PPEC 140

Master of Business Administration (MBA)

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