Effects of political environment on ICT sector

Posted on April 28, 2006 / 4 Comments

LIRNEasia’s research from the outset has focused on the conditions for greater investment in the ICT sector. The effects of the larger political environment on the cost of capital in the ICT sector is one that was discussed in the research, but not fully supported by evidence.

It appears that the sad deterioration of the political environment in Sri Lanka offers a natural experiment in assessing how the qualitative and sudden deterioration (as opposed to gradual decline) of the political environment effects investment in ICTs. It is hoped that the Sri Lanka team of the 2006-07 research cycle will capture the evidence as it appears.

4 Comments

samarajiva
April 29, 2006, 11:42 pm
The Daily Mirror (28 April 2006) states:

“Shipping industry sources said at the moment rates for held covered region in which Sri Lanka was previous listed under was 0.1%. The rates are likely to go up next week. “Underwriters have issued the notice of cancellation and costs we will know after the effective date of cancellation which is 7th May 2006,” sources told the Daily FT.

Analysts said that the adverse re-rating of war risk for Sri Lanka poses a serious threat to Sri Lanka’s competitiveness. Sri Lanka was first included in the War risk list after the devastating LTTE attack on the Katunayake air base and airport. After protracted lobbying the war risk stated was lifted. “We are now back to square one,” analysts said.”

This is the cost of war.
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Sanjana Hattotuwa
April 30, 2006, 1:22 pm
Dear Rohan,

Thanks for the post – wrote some thought related to it, albeit with a slightly different emphasis, here – http://ict4peace.wordpress.com/2006/04/30/13/

Stay well,

Sanjana
£lliott
September 7, 2007, 5:40 pm
u chat shit this was last year n u dont evan have any fuckiing evidence saying this is going to happen u fucking sri lankan tits