Philanthropist and global investor George Soros is considering investing in Sri Lanka, a move that other international investors would follow, since Soros has a track record of success in choosing winning investments. According to the Sunday Times in Sri Lanka, Soros is expecting the country’s to move from an agricultural-based one to a knowledge-based economy. They also report that George Soros is pleased with the new government and their achievements so far.
Speaking at an economic conference on georgesoros.com held on the island nation in January of 2016, Soros praised Sri Lanka for its steps toward democracy. According to the Wall Street Journal, Soros was vague about any possible investment, although other international investors have favored the tourism sector in Sri Lanka. When an international investor like George Soros, who is known for identifying growth opportunities, says he is considering Sri Lanka, it is a major boost for the island nation. All George Soros had to do was mention that he had a new stake in Ferrari, the luxury car manufacturer, and the stock went up.
While in Sri Lanka, George Soros warned of another global economic crisis, saying Sri Lanka would be an exception. He said the currency volatility reminded him of the financial crisis of 2008, in addition, Soros predicted that China’s troubles would have a ripple effect, creating deflationary pressure in other world markets. While some economists say George Soros is overreacting, he didn’t amass a $27 billion, making him the world’s 22nd richest man, fortune by overreacting to world events. When the Japanese yen faltered, Soros Fund Management on investopedia.com saw a $1 billion profit, thanks to the foresight of its chairman. Soros’ words have carried a great deal of weight in financial circles since the legendary Quantum Fund’s performance decades ago. Currently, Sri Lanka is hoping that Soros’ endorsement will reflectively entice other global investors to the island nation.