Sri Lanka's sovereign rating outlook was raised to positive from stable by Moody's Investors Service, which cited a "peace dividend" of greater economic and financial stability.

On 14 September, Standard & Poor’s (S&P) upgraded Sri Lanka’s long-term foreign currency sovereign credit rating to B+ and the long term local currency rating to BB- with a stable outlook.

"Sri Lanka has started to reap a peace dividend that has accrued to the economy and the security environment," Moody's said in a statement. "The economy is expected to grow sustainably at around 8 to 9 percent over the medium term as confidence is further bolstered and investment picks up."

Central bank Governor Nivard Cabraal forecasts economic growth to accelerate to 8.5 percent this year, from a 32-year high of 8 percent in 2010, because of rising demand and investment after the conflict.

Sri Lanka received a record $236 million of foreign direct investment in the first quarter of 2011, with the tourism industry attracting most of the inflows, the Board of Investment said June 7.

Sri Lanka is a good story. We would like to see if the improved peace conditions can also attract more foreign direct investment and tourism, Morten Bugge, chief investment officer at Kolding, Denmark-based Global Evolution AS said.

The country also has “high growth, attractive labor costs and a unique strategic geographical location that could be the opportunity for the future, especially in port activities,” he further said.