Global organisations are recognized as organizations working through various nations and cultures. Global organizations and their development since World War II have been tremendous, global organizations have been everywhere and require a deep understanding of the economic and political environment in which they work. They require efficient management to be productive and to keep a competitive advantage over other local or international business rivals. Global arbitration preparation and implementation are particularly difficult, as companies are attempting to establish a standardized framework in many jurisdictions(O’Neill et al., 2017). Organizations must face a variety of obstacles when it comes to reimbursing for a globally distributed workforce.

In recent years, the international economic climate has changed dramatically and drastically. The global economic transition reflects the enhancement and deterioration of living standards in every region. The economic climate influences global economic transition, including the job standards, inflation, rate of interest, taxes and exchange rates, etc. Consequently, the execution of economic policy has a significant direct effect on international business and that is how, in terms of international economic policies, they are presented for international businesses. Globally there are a variety of issues which have influenced both the world economy and the domestic economy like the challenges of foreign trade, illnesses like bird flu, the circumstances of the climate like disasters like the Japanese tsunami and other financial crises (Giridhar, 2008). This report is aimed at analyzing the Sri Lankan economy to represent certain recommendations to new international businesses in the region. This report will also discuss the Investment Policy Statements and the importance of analyzing markets before starting a business in its later parts.

Growth Rate of Sri Lankan in Recent Past

In 2017, the Sri Lankan economy only grew around 3.1% well under the average that was predicted by the Central Bank of Sri Lanka as a result of droughts and floods, and policy tightening. The CBSL (Central Bank of Sri Lanka) however expected a rebound in 2018 and a 4.5% growth in the economy. Initially, the ADB (Asian Development Bank) and IMF (International Monetary Funds) have projected 4.2% and 4.8% growth rates respectively for Sri Lankan economy, with a possible revival of the agricultural sector which was badly hit by natural disasters, in 2017(Indicators, 2009). The Department of Census and Statistics states, however, that the economy has only improved by 3.3% in the first nine months of 2018 and the Central Bank of Sri Lanka has many times deferred the growth estimate of the nation over the first quarter of 2018 to only 3.7%. Moreover, because of adverse trends both domestically and internationally, Asian Development Bank and the International Monetary Funds also decreased their projections for Sri Lanka’s growth to 3.8 per cent and 3.7 percent respectively for the year 2018. In 2018, Sri Lanka's economic success in comparison to its global aristocracies was not adequate (W. Madurapperuma, 2016). The growth rates of other neighboring countries of Sri Lanka remained slightly around 5% that shows that the growth rate of Sri Lanka slowed significantly in recent times.

The reasons for subdued production in Sri Lanka could be weak domestic demand, steady currency tightening as well as government spending, declining fixed investment, and lower net exports. Strengthening monetary policy contributes to both internal demand and expenditure depreciation (W. Madurapperuma, 2016). Furthermore, contradictory political instability-led economic policies may have impacted delays in investment from the private and government sectors which are main drivers of economic growth.

Future Challenges to Sri Lankan Economy

Amid a string of reverses in 2017 and 2018, a crippling suicide attack, followed by a constitutional crisis in the three-quarters of 2018 Sri Lankan economy is undergoing gradual recovery. The economy's general positioning in 2019 is poor with slow GDP growth of about 3% and strong foreign debt settlements (Jayasekara, 2009). This is following substantial changes in economic, monetary and foreign exchange policy management from mid-2016 as a result of macro adjustment initiatives. In setting the stage for a new period of economic growth and development after the definitive elections in 2019-2020, Sri Lanka will take into account new instruments for measuring and recognizing competitiveness. The Fourth Industrial Revolution (4IR) demonstrates intrusive, dynamic and destructive automation innovations such as artificial intelligence (AI), robotics and 3D printing (Bekchanov and Mirzabaev, 2018).

The problems and opportunities need to be recognized in countries with growing demographics such as Sri Lanka, which need development as a major engine for potential growth. The 2019 study on "The transformation of Sri Lanka's economy in the fourth industrial revolution (4IR)" covers Sri Lanka's many sectors of economic activity, including employment, education, migration, ethnicity, health and financial inclusion as well as commerce, agriculture and climate change. Sri Lanka's economy faces two challenges: to maintain its strong economic growth since the end of the war and to recover the macroeconomic stability required to create the conditions that will help this development (Bekchanov and Mirzabaev, 2018). As the government needs to be heavily dependent on the involvement of the private sector in economic activities, the private sector needs to create adequate basis conditions to invest its money in companies which generate wealth for the country.

Recommendations for the Investor

Based on the above-mentioned analysis of ongoing slow growth rate and future planning of the government of Sri Lanka I will recommend the following investments to the overseas investor who is willing to invest 50 million US dollars in Sri Lankan market.

Following the three-decade civil war ended in 2009, and the continuing policy instability, Sri Lanka was struggling to resume economic development. Since the war has ended and the industry profits are on the books, tourism arrivals have risen by over five (Kamble and Bouchon, 2014). Sri Lanka will shortly issue free visas to Indian holders of passports to facilitate tourism from the end of this year and onwards. Indians are the country's main travel community, after China, which also has a visa-free program. I would suggest the tourism industry as the area of investment. Sri Lanka’s tourism scope is much higher than its neighboring countries and after the political instability and after facing issues regarding growth rate the tourism industry in Sri Lanka is flourishing again.

While other business sectors are performing badly for Sri Lanka which is represented by the sluggish growth rate of Sri Lankan economy in past few decades the tourism industry is only the hope for private investors as well as for the government of Sri Lanka (Michael Hall and Page, 2016). Sri Lanka is renowned as a paradise on earth due to numerous eye-catching and beautiful sceneries across the country. Consequently, a large number of visitors desire to visit the country. To invest in the tourism industry in Sri Lanka will make sense because the country has now become the safe place to visit as the government and the military have taken control over militants who disrupted the peace in Sri Lanka.

Investment Policy Statement

Investment policy statement refers to an agreement drawn up by a portfolio manager and a client that defines a manager's general principles. This statement presents a client with general investment objectives and priorities and explains the methods that the planner will employ to meet these targets. The investment policy statement provides detailed information on issues including asset distribution, risk appetite and liquidity criteria. Investment policy statements are commonly used for the analysis of an investment program for the client by investor counselors and financial advisors (Blessing and Onoja, 2015). This drives responsible decision making and acts both as a blueprint for productive investment and as a safeguard against errors or misconducts. A well-conceived IPS with only actionable guidelines to be implemented will help advisors who decide to adjust the direction of their portfolio dramatically as the markets continue to crash.

Objectives of IPS of Investment Portfolio Management

We plan to build a balanced portfolio with a risk that is suitable for your return after inflation, achieving real growth. Below are the objectives for your investment portfolio.

· To grow and generate long-term sustainable income

· To decrease short-term requirements of liquidity

· To minimize the risks against investment by selecting the most appropriate industry which suits the internal and external of the particular country.

· The general investment aim is to construct reserves for future use with the accompanying responsibility to fulfill existing commitments and potential requirements to maintain the necessary amount of assets. The tracking of short-term investment outcomes is critical for the institution's long-term performance in adhering to a sound long-lasting investment strategy that balance short-term spending needs and maintain its true asset value (Ahlbeck, 2003).

Financial Advisor’s Role and Duties

Unbiased respected Financial advisors would be responsible for helping investors to meet long-term financial targets. To contact the client for the asset allocation. A financial advisor would be responsible to pick investments that have appropriate risk diversification and returns concerning the asset allocation. A financial advisor would be responsible for monitoring any occurring expenses during the project (Allen et al., 2004). Financial advisor would track both investment opportunities and client portfolio. He would also be responsible for weight daily all portfolio securities and furnish monthly accounts of debt, cash balance, profits and month-to-month interest adjustments.

Portfolio Selection Guide of Investment Portfolio Management

Long-term success is usually determined by the value of properties. In the past, inventory reserves had low return values and greater uncertainty. In general, fixed investments yield lower return rates, a lower stock link and lower risk. It is advised to diversify between asset geography and scale. The fund asset distribution is focused on 60 percent stock reserves and 40 percent depending on the customer's cautious risk profile (Ahlbeck, 2003).

Rebalancing of Asset Allocation

Assets are diversified into and across three main asset groups, for instance, the financial sector, sooq capitalization and commerce. The goal of this diversification is to ensure fairly that there is no undue effect on asset prices and returns of a single security or class of securities. The foregoing provisions include sufficient diversification of portfolios and have complete responsibility for selection and diversification of investment and complete flexibility for the selection and diversification of shares and the distribution of assets under the limits listed below (Ahlbeck, 2003).

Performance Monitoring of Investment Portfolio Management

The controlled portfolios should be reviewed for stability, based on the asset allocation, comparatively exposure and market performance to adverse economic and financial trends, in implementation of the investment policy return specified by the Committee, relative to its investment strategy and investment risk. Within a whole business period (3-5 year), every asset class shall meet the requirements (Wetzstein et al., 2009). The committee must consult with the investment advisor at least quarterly to ensure that the conditions that have contributed to initial standards of results remain in place and to ensure that the approach of each investor is compatible with the fund's general goals and to track any sanctuaries.

Assumptions Regarding IPS

The investment policy statement is aimed at long-term income and profit generation of the client to sustain in a competitive market of fast-moving consumer goods. The portfolio includes proper monitoring and reviewing mechanism that will help in understanding the match between portfolio and market trends. Consequently, the investor will be in an improved position to make any strategic changes in a policy statement following the market requirements.

Importance of analyzing international markets for Global Organizations

Marketers with global goals typically see international markets as possibilities for revenue and earnings to increase. Domestic businesses are encouraged by policy officials to strive towards global development and job generation at an international level. Studies have demonstrated, on the other hand, that a significant constraint on the absence of access to the international market from the point of view of an organisation (Luo and Tung, 2007). This is common knowledge that choosing the best global markets is one of the biggest decisions that an internationalization company will take. However, the study has shown that lack of global market awareness disrupts many businesses from these countries. It is obvious that many businesses, medium-sized and small firms, rarely carry out analysis work. Knowledge inefficiencies tend to be another significant factor in hampering export behavior.

PESTEL Analysis of Markets of Investment Portfolio Management

The acronym PESTEL reflects political, economic, social, technological, environmental, and legal influences of a country. The international considerations include economic policy pertaining to the global economy, laws and legislation, taxes and other factors that might influence business in future (Planellas and Muni, 2019).

Political factors of Investment Portfolio Management

Political factors include whether a government is involved in the economy, and to what degree. These may include government policy, political stability and uncertainty in the seas, international exchange policy, taxation policies, labor regulations, environmental regulation, export restrictions, etc. From the aforementioned list, it is obvious that the political forces also influence companies and their way of doing business (SMI, 2013).

Economic factors of Investment Portfolio Management

Economic conditions influence how a company does business and even how profitable it is. Considerations are economic growth, interest rates, exchange rates, wages, household and sector disposable income etc. Governments are using the key tools for regulating interest rates, taxation policy and budget spending. The way people invest their money is all about micro-economic considerations (Llespie, 2011). Organizations must be able to adapt and change their communications strategy in compliance with existing and expected regulations.

Social and Technological factors

Social factors are those fields that include people's common values and attitudes. While technological factors include the factors related to technology that influence the productivity of firms.

Environmental factors

These factors influence international businesses regarding the environment. An international organization must follow the rules and regulations set by a country regarding the environment.

Legal factors of Investment Portfolio Management

Health and safety, fair access, advertising practices, consumer rights and regulations, drug labeling and food protection are also legal considerations. It is clear that businesses need to know what is and what is not legal for effective trade (Yüksel, 2012).

Conclusion of Investment Portfolio Management

Business globalization has become the most significant topic for investors around the world. On the other hand, it is essential to analyze the markets of other countries to accomplish the defined objectives of investors (Hill, 2008). Rules, regulations, growth rates, currency values, and demand for certain products may vary from country to country. Consequently, it is essential to observe and analyze particular markets of specific countries to wisely invest in areas that may help the investors to achieve their desired goals.

References of Investment Portfolio Management

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Allen, L. et al. (2004) ‘The Role of Bank Advisors in Mergers and Acquisitions’, Journal of Money, Credit, and Banking, 36(2), pp. 197–224. doi: 10.1353/mcb.2004.0008.

Bekchanov, M. and Mirzabaev, A. (2018) ‘Circular economy of composting in Sri Lanka: Opportunities and challenges for reducing waste related pollution and improving soil health’, Journal of Cleaner Production, 202, pp. 1107–1119. doi: 10.1016/j.jclepro.2018.08.186.

Blessing, A. and Onoja, E. E. (2015) ‘The role of financial statements on investment decision making: a case of united bank for africa plc (2004-2013)’, European Journal of Business, Economics and Accountancy, 3(2), pp. 12–37.

Hill, C. (2008) ‘International Business: Competing in the Global Market Place’, Strategic Direction, 24(9), pp. 2–4. doi: 10.1108/sd.2008.05624iae.001.

Indicators, S. E. (2009) ‘Central Bank of Sri Lanka Selected’, Annual Report, (March).

Jayasekara, R. S. (2009) ‘Issues, challenges and vision for the future of the nursing profession in Sri Lanka: A review’, International Nursing Review, 56(1), pp. 21–27. doi: 10.1111/j.1466-7657.2008.00657.x.

Kamble, Z. and Bouchon, F. (2014) ‘Tourism Planning and a Nation’s Vision: A Review of the Tourism Policy of Sri Lanka’, Procedia - Social and Behavioral Sciences, 144, pp. 229–236. doi: 10.1016/j.sbspro.2014.07.291.

Llespie, G. (2011) ‘PESTEL analysis of the macro-environment’, Oxford University Press, pp. 1–5.

Luo, Y. and Tung, R. L. (2007) ‘International expansion of emerging market enterprises: A springboard perspective’, Journal of International Business Studies, 38(4), pp. 481–498. doi: 10.1057/palgrave.jibs.8400275.

Michael Hall, C. and Page, S. J. (2016) ‘The Routledge Handbook of Tourism in Asia’, in The Routledge Handbook of Tourism in Asia, pp. 1–393. doi: 10.4324/9781315768250.

O’Neill, B. C. et al. (2017) ‘The roads ahead: Narratives for shared socioeconomic pathways describing world futures in the 21st century’, Global Environmental Change, 42, pp. 169–180. doi: 10.1016/j.gloenvcha.2015.01.004.

Planellas, M. and Muni, A. (2019) ‘PESTEL Analysis’, in Strategic Decisions, pp. 72–75. doi: 10.1017/9781108665797.012.

SMI (2013) ‘PEST & PESTEL Analysis’, Strategic Management Insight. Available at: https://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html.

W. Madurapperuma, M. (2016) ‘Impact of Inflation on Economic Growth in Sri Lanka’, Journal of World Economic Research, 5(1), p. 1. doi: 10.11648/j.jwer.20160501.11.

Wetzstein, B. et al. (2009) ‘Monitoring and analyzing influential factors of business process performance’, in Proceedings - 13th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2009, pp. 141–150. doi: 10.1109/EDOC.2009.18.

Yüksel, I. (2012) ‘Developing a Multi-Criteria Decision Making Model for PESTEL Analysis’, International Journal of Business and Management, 7(24). doi: 10.5539/ijbm.v7n24p52.