Corporate Finance - Sri Lanka

Sri Lanka

The Corporate Finance market market in Sri Lanka is projected to generate a revenue of US$276.10m in 2024.
This sector is expected to exhibit a steady annual growth rate (CAGR 2024-2028) of -8.98%, resulting in a projected total revenue of US$189.50m by 2028.
In 2024, the average transaction value in the Corporate Finance market market is estimated to be US$60.85m.
When compared globally, it is noteworthy that the United States leads in terms of revenue, with a projected amount of US$119.10bn in 2024.
Sri Lanka's corporate finance market is experiencing a surge in mergers and acquisitions, driven by increased foreign investment and market liberalization.

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Currency

Analyst Opinion

The Corporate Finance market in Sri Lanka is experiencing a notable shift in recent years, driven by various factors influencing the financial landscape of the country.

Customer preferences: Customers in Sri Lanka are increasingly seeking more diverse and sophisticated financial products and services, reflecting a growing appetite for tailored corporate finance solutions that cater to their specific needs. This shift in preferences is pushing financial institutions to innovate and offer a wider range of services to meet the evolving demands of corporate clients.

Trends in the market: One prominent trend in the Corporate Finance market in Sri Lanka is the rise of mergers and acquisitions activity among local businesses. This trend is fueled by a desire for expansion, consolidation, and strategic partnerships in a competitive business environment. Additionally, there is a growing interest in alternative financing options such as venture capital and private equity investments, indicating a maturing market seeking new avenues for capital infusion.

Local special circumstances: Sri Lanka's unique geopolitical position and its strategic initiatives to position itself as a regional financial hub are influencing the Corporate Finance market. The government's focus on infrastructure development and economic reforms is creating opportunities for increased investment and financing activities, further stimulating the growth of the corporate finance sector.

Underlying macroeconomic factors: The stability of Sri Lanka's economy, coupled with favorable government policies and regulatory frameworks, is fostering a conducive environment for corporate finance activities to thrive. Additionally, the increasing integration of Sri Lanka into the global economy through trade agreements and partnerships is attracting foreign investors and expanding the scope of corporate finance opportunities in the country.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.