Sri Lankan defence industry expected to reach $ 2.6 b by 2019
Wednesday, 6 May 2015 01:18
Sri Lanka’s defence industry, valued at $ 1.8 billion in 2014, is anticipated to record a Compound Annual Growth Rate (CAGR) of 8.06% over the next five years to reach $ 2.6 billion by 2019, a recently released market report said.
Dublin-based market analysts, Research and Markets in its latest report on the Sri Lankan defence industry, ‘Future of the Sri Lankan Defence Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2019,’ expects Sri Lanka to strengthen its maritime security and surveillance to counter the problems of terrorism, piracy, oil pollution spills, and illegal drug and arms trafficking. Sri Lankan homeland security expenditure stands at $ 500 million in 2014 and is expected to grow at a CAGR of 4.41% over the forecast period, to reach $ 600 million in 2019.
Over the forecast period, the country is expected to procure fighter aircraft, transport helicopters, offshore patrol vessels, surveillance systems, armoured vehicles, and ambush-protected (MRAP) vehicles, among many others.
The report provides detailed analysis of both historic and forecast Sri Lankan defence industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
It says that an increased threat of the re-emergence of the separatist militant organisation, demining, and rehabilitation efforts by the military forces following the Eelam war, and the strained relationship with India are factors driving military expenditure.