STAX Inc., a global strategy consulting firm, has been working in collaboration with International Enterprise Singapore (IE) for over two years to inform Singaporean companies and investors on investment opportunities in Sri Lanka. IE is a statutory board under Singapore’s Ministry of Trade & Industry that facilitates the overseas growth of Singaporean companies and promotes international trade.
Given this liaison with IE, STAX has presented regularly to business communities in Singapore on the macro-economic landscape and investment opportunities in Sri Lanka. STAX was recently invited by IE and the Singapore Water Association (SWA) to present an overview of the opportunities in Sri Lanka’s water sector. “The presentation provides potential investors with a comprehensive view of the required investments relating to the water sector in Sri Lanka,” says Dr. Kumudu Gunasekera, a Director at STAX.
Sri Lanka has an ample water supply with 52.8 billion cubic meters (BCM) of surface, ground, and overlap between surface and groundwater. The country’s water consumption in 2013 was 16 BCM and is set to reach 20 BCM by 2018. Of the 120 BCM of annual rainfall received, only about 36% is available for use due to run-offs in the river system and lack of dam capacity. Over 64% of annual rainfall is currently non-utilisable because of insufficient catchment capacity.
Despite the ample rainfall and the broad supply of water resources available to the populace, dry zones in the island are expected to face absolute water scarcity by 2025, largely owing to the forecasted increase in water-intensive paddy cultivation. The situation is exacerbated by poor adoption of water saving techniques and technological advancements; high losses associated with storage, distribution, and on-farm utilisation of water; and lack of incentives for conservation due to free state supply of water for irrigation.
Hence, there is an increasing need for efficient water management to ensure sufficient water availability for all consumption sectors. “Our team at STAX is committed to not only researching the global best practices in these areas, but also to harnessing investment potential to bring those much-needed best practices to Sri Lanka,” added Dr. Gunasekera.