Digital Investment - Sri Lanka

Sri Lanka

Highlights

Total transaction value in the Digital Investment market is projected to reach US$641.70m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.88% resulting in a projected total amount of US$895.10m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$641.70m in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Sri Lanka is experiencing significant growth and development.

Customer preferences: Customers in Sri Lanka are increasingly turning to digital investment platforms due to the convenience and accessibility they offer. With the rise of smartphones and internet penetration, investors are now able to access investment opportunities at their fingertips. The younger generation, in particular, is attracted to the ease of use and flexibility provided by digital investment platforms.

Trends in the market: One major trend in the digital investment market in Sri Lanka is the increasing popularity of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on the investor's risk profile and financial goals. Robo-advisors provide a low-cost and efficient way for individuals to invest in a diversified portfolio without the need for extensive financial knowledge or expertise. Another trend in the market is the emergence of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial institutions. This allows individuals and small businesses to access loans at competitive rates, while providing investors with an alternative investment opportunity. Peer-to-peer lending platforms are gaining traction in Sri Lanka as they offer higher returns compared to traditional savings accounts or fixed deposits.

Local special circumstances: Sri Lanka has a growing middle class with increasing disposable income, which is driving the demand for investment opportunities. Traditional investment options such as real estate and gold are no longer the only choices for investors. Digital investment platforms provide a wider range of investment options, including stocks, bonds, and mutual funds, allowing individuals to diversify their portfolios and potentially earn higher returns.

Underlying macroeconomic factors: The Sri Lankan economy is experiencing steady economic growth, which is creating a favorable environment for investment. The government has implemented reforms to attract foreign direct investment and promote entrepreneurship. This has led to an increase in business opportunities and job creation, contributing to the overall economic growth of the country. Furthermore, the country's financial sector is becoming more robust and sophisticated, with improved regulatory frameworks and technological advancements. This has created a conducive environment for digital investment platforms to thrive and expand their services. In conclusion, the Digital Investment market in Sri Lanka is growing rapidly due to customer preferences for convenience and accessibility, as well as the emergence of new trends such as robo-advisors and peer-to-peer lending platforms. The local special circumstances, including a growing middle class and a favorable macroeconomic environment, are also contributing to the development of the market. With the continued advancement of technology and the increasing adoption of digital solutions, the Digital Investment market in Sri Lanka is expected to continue its upward trajectory.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.