Sri Lanka was the world’s top performing stock market in 2010, with an increase of 96%. In this study we examine the progress that the country is making now that the 30 year long insurgency is over. We find that economic growth is likely to continue at 8%. We examine the tax reductions, at corporate, investor and individual levels, that were introduced in the latest Budget.  We believe that every strategist and investment manager with geographic allocation responsibilities needs to be aware of developments in this market.   This research has been produced in association with Asia Securities of Colombo, and is the first of a series that we shall be producing on Sri Lanka.  

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