Today: November 30, 2015, 6:02 pm

Sri Lanka defence market: Budget of only $1.7 billion in 2012
Future of the Sri Lankan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 - a new market research report on 2014-04-22 01:27:02
With a defense budget of US$1.7 billion and less than 5% marked for capital expenditure, Sri Lanka presents few opportunities for foreign defense companies. Rebuilding northern parts of the country, which were destroyed during the war and repayment of loans taken during the war, are expected to drive the country´s military expenditure, which is expected to grow at a CAGR of 6.12% over the forecast period.

The country is expected to maintain a low allocation for defense procurement over the forecast period, focusing only on procuring necessary arms as the country focuses on reducing its debt. During the forecast period the country is expected to invest US$10.7 billion in the fulfillment of its defense requirements, stimulated by factors such as post-war rehabilitation and a tense relationship with India.

During the forecast period the country is expected to invest US$10.7 billion in its armed forces, of which US$0.44 billion is forecast to be on the acquisition of military hardware, offering foreign OEMs limited opportunities to cater to the Sri Lankan defence industry. Furthermore, during the civil war the country procured weapons by taking loans and, therefore, over the next five years a portion of military expenditure will be spent on the repayment of existing loans. The country is focusing on increasing its revenue expenditure from an average of 94% during the review period to an average of 96% during the forecast period, a factor which is also expected to cause the acquisition of defence equipment to further decline. Such factors do not make the Sri Lankan defence market an attractive investment destination for foreign OEMs.

Incidents of malpractice within Sri Lanka´s military industrial base may limit the growth of the country´s defence sector. In addition to damaging the country´s image in the global arms market, it also discourages foreign OEMs from market entry. For example, in 2010 the former Sri Lankan army chief was found guilty of favoring the defence firm of his son-in-law, and was subsequently convicted. Furthermore, the government has been accused of siphoning off a portion of the contract money for the acquisition of four MiG-27 aircraft and the overhaul of three other MiG-27 craft and a MiG-23 UB trainer contract awarded to the Ukraine in 2006. The government has also been accused of transferring the money to a proxy firm in the UK. All these factors hamper the growth of the Sri Lankan defence industry.

Click for report details: ..

Browse all Defence Market Research Reports ..

Browse all Defence Company Profile Reports ..

Browse all Latest Market Research Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Press Information

Published by
Mike King
London: +44 (0) 203 086 8600

# 611 Words
Related Articles
More From Finance
USGFX Anticipates A Rise In Forex Trading [..]
The Shanghai Composite Index has been volatile and at one stage dropped more than 30% from its June 12 peak, [..]
Credit-Yogi Recommends Reputable Debt Solution Companies To [..]
Many people who have poor credit don’t know what to do about it. They realize that their bad credit prevents [..]
Credit-Yogi Reveals Special Considerations for Military Members [..]
No one wants to have their vehicle taken back by their banks. It’s a source of stress for the individual [..]
Credit-Yogi Teaches Consumers How To Use HAMP [..]
Be Prepared to Utilize HAMP Lenders do not like to help borrowers prevent foreclosure by accessing the Obama loan modification [..]
Credit-Yogi Informs Military Members Facing Auto Repossession [..]
No one wants to have their vehicle taken back by their banks. It’s a source of stress for the individual [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.