From foreign hotel towers sprouting on Colombo‘s seafront to the new motorbikes and mobile phones buzzing in war-ravaged Jaffna, at first glance, Sri Lanka seems to be living up to its claim as Asia’s latest frontier market.

But private businesses are not investing enough, threatening the boom that has swept the island since the end of a long ethnic conflict, while President Mahinda Rajapaksa and his family are tightening their grip on the economy and institutions with what critics see as an unusually personalized system of government.

The global economy may be in poor shape, but with 17 percent growth since the war ended in 2009 and an eye-popping 200 percent rise in the stock market, investors should be flocking to Sri Lanka’s palm-fringed shores.

Read Here – Reuters