Factors Influencing Investment Decisions during Economic Crisis: With Reference to Investment Behaviour of Non-resident Sri Lankan Entrepreneurs and Professionals

Abstract

Foreign direct investments (FDI) are vital for a country to improve its economic stability, especially in a country like Sri Lanka, which is in a massive financial crisis. FDI can be made by expatriates or foreigners. This study focused on the factors Sri Lankan native professionals and entrepreneurs consider when investing in Sri Lanka. There is a lack of literature about the investment decisions of expatriates when investing in their homeland. This research paper explores bridging the gap by using a qualitative method and an inductive approach. Data were collected by conducting in-depth interviews with eligible businessmen and professionals. Eleven interviews were conducted to identify the codes and themes that affect investment decision patterns. This paper highlights that expatriate investments need more attention and awareness to enable an easy flow of forex into the nation. The study's findings showed that the Sri Lankan government’s decisions (exchange rates, political decisions, tax), the attitude of the Sri Lankans, the education system, and the emotional bond with Sri Lanka are affecting the investment decision. The study helps the Sri Lankan government and policymakers realise the difficulties investors face when investing in Sri Lanka. Also, this study reveals how the education system and attitude of the people should change to increase FDI flow.