Stax anticipates continued private equity interest in Sri Lanka through 2017
Stax, a global strategy consulting firm that advises leading private equity (PE) funds worldwide, noted that investment and merger & acquisition (M&A) activity in Sri Lanka has increased over the past two years. An ongoing high level of activity is expected in the near-term, mainly fueled by continued interest in the country’s healthcare, hospitality, education, and export sectors.
The company noted that M&A trends in Sri Lanka mirror those in Asia—some of the largest PE deals in the region (within the past two years) have been in the B2B and healthcare space. According to a media statement releaed by the company, deal value sizes in Sri Lanka often do not match those within the broader region, as mature APAC economies are such dominant forces. However, there is still scope to attract smart investors to the island if local businesses “think big” and position themselves attractively as high-growth options.
“Private secondary education, universities (foundation, pathway and degree programmes), and technical colleges are ripe for foreign investment, as there is increased spending on education, limited capacities at public universities and schools, and narrow study streams. Investors will also be eyeing earmarked export areas, which include knowledge-based exports (IT/BPO), and manufacturing-based wholesale and branded products.
The next three to five years will be a window of opportunity in which local companies in healthcare, hospitality, education, and export industries can attract smart capital. With the right positioning and evidence of high growth, such players stand a good chance of capitalizing on the PE interest in Sri Lanka” said the media statement.