'Following the cessation of the 20-year civil war, we think Sri Lanka is on course for a period of long-term economic expansion and represents another exciting opportunity,' Lim said.

'The reconstruction is beginning in earnest, as funds that were previously earmarked for defence spending are redirected. Growth should also come from the regeneration of tourism, one of the key strengths of Sri Lanka, and there are reports that hotel occupancy is already at, or near, full capacity.'

Baring ASEAN Frontiers currently have two holdings in Sri Lanka; John Keells and Sampath Bank.

Since its launch in August 2008, the ASEAN Frontiers fund has returned 31.4% in dollar terms compared to a 29.1% rise in the MSCI South East Asia index. The objective of the Baring ASEAN Frontiers Fund is to achieve long-term capital growth in the value of assets by investing in companies in Asia which the manager believes will benefit from the economic growth and development of the region.