Craig McGuckin said....., page-28

I was having a bit of fun. My emoji should have come thru. I did say sri lanka had issues. I also did say elections could cause civil chaos. Keeping these in mind i also did say there could be delays to the process of permits and production. 63 thousand police/army deployed. That is a good sign for SL as less prospect of corruption and intimidation. It is also a sign that the government is trying to promote a fair election.
No one disputes that in reality sovereign risk exists and it is greater in a developing nation than a developed one. This can be as basic as business disruption to nationalisation projects where businesses are completely lost. Local business has always thrived in sri lanka. True corruption is endemic but the people affected most are the common people. Business people will navigate thru these issues.
My issue was not that. It is the impression that SL thru whatever political turmoil will head towards civil war again or something as drastic - it is wrong.
The other issue is political turmoil can affect mrl directly - wrong unless it publicly supported one party. In sri lanka in business you support all major and minor candidates. That will appease them.
However one thing is for certain - foreign money is required to generate wealth to the Lankan economy and whichever major party comes to power, moral and foreign business will be promoted by the BOI. that was my point - sovereign risk is thrown about but in business there is perceived and real. To understand real risk one needs to understand how the country works. Not just look at the superficial headlines.
The only threat politically is if the communist party in JVP comes to power (they claim by 2020 they will a power again. One needs to be reminded they were brutally rejected in the 1980s and now is a non violent part with minimal clout). For the moment forget this.
The only caveat to whatever statement is if any global issue takes place i.e. GFC or Asian wars.