Douglas Clayton’s Leopard Capital, which last year launched Cambodia’s first multi-sector investment fund, announced the launch of a Leopard Sri Lanka Fund LP for early 2010. “After several decades of civil war, peace has finally returned to the beautiful island of Sri Lanka, and a new investment cycle and growth upswing has begun. Leopard Sri Lanka Fund will provide expansion capital and strategic guidance to mid-market Sri Lankan companies, and also help some expand their businesses into other frontier economies,” the firm notes. Leopard Sri Lanka will be headed by Colombo-based managers Nirosh De Silva and Ramanan Govindasamy.
Investor confidence in the island is high, as country visits surged this summer and plans emerged to expand hotel and resort facilities. Moreover, official reserves surpassed the $4 billion mark in September–roughly equivalent to over 4.4 months of imports–and is Sri Lanka’s highest ever reserves level. The Central Bank noted that this level should strengthen in coming months on the back of increased foreign exchange inflows. Finally, the country’s exchange remains up over 40% since the offical cessation of violence in May.