Disruption, Digitisation, Resilience

19 DISRUPTION, DIGITISATION, RESILIENCE : The future of Asia-Pacific supply chains Figure 6: People and location are priorities for investment Characteristics that make a country attractive for investment in the last 12 months and next year (% of respondents ranking #1) Labour costs Geographic location Access to key markets Infrastructure Regulatory environment Productivity Skilled workforce/soft skills Government subsidies/incentives Skills Currency convertibility Political stability Tax rates Access to finance Source: The Economist Intelligence Unit 28.0% 25.1% 16.0% 5.7% 5.7% 5.1% 4.0% 2.9% 2.9% 1.7% 1.1% 1.1% 0.6% decade. 17 China is now among Sri Lanka’s biggest investors and creditors and is its largest export and import partner. Additionally, labour costs in Sri Lanka remain considerably low, and make it well suited for low-tech, labour-intensive manufacturing. This confluence of factors likely has a role in making Sri Lanka an attractive investment destination for supply-chain managers based in China. decisions. In the survey, 26% of supply-chain managers based in China picked Sri Lanka as one of the top three countries in which they have or are likely to invest — considerably higher managers based in other countries. The economic relationship between China and Sri Lanka has deepened considerably over the past 17 “The Economics of the China-India-Sri Lanka Triangle.” The Diplomat . 1 May 2021. Available online at https://thediplomat.com/2021/05/the-economics-of- the-china-india-sri-lanka-triangle/