Testing the Waters?

In the post-2009 era, focus on encouraging members of the diaspora to invest in Sri Lanka has been relatively high. However, there is lack of clarity on why such members would wish to financially invest in their “home” country, especially those who had left Sri Lanka during the conflict. Using the burgeoning tourist accommodation sector in Jaffna and Nallur, this study tracks such financial investments into the sector by diaspora members and further analyses the motivational dynamics underpinning such investments. Adapting a model proposed by authors Nielsen and Riddle (2010) the study found that while emotional and social status motivations are strong, political motivations are fundamental to understanding the decision-making process. However, rather than possessing an ‘edge’ over other investors because of their local knowledge and social networks, diaspora investors encounter a range of challenges in setting up and operating a business remotely.