As Sri Lanka stabilizes after an unprecedented default in 2022, global investors will return if they feel the country is on the right track, Sweden’s Tundra Fonder AB said.

Since Sri Lanka’s dollar bond restructuring in December, the country’s economic expansion has beaten forecasts and its credit rating has been upgraded, but it still has a weighting of 0.7% in the MSCI Frontier Emerging Markets Index. Global investors accounted for about 10% of the country’s equity turnover in 2024, more than double the 2021 level. Foreigners have been the sellers of shares so far this year, but the country’s market participants are holding a two-day conference in Colombo starting Thursday to try to drum up interest.