It's been a good run for Sri Lanka of late. In mid-July, all three major ratings agencies upped their views on the country, pointing to the ongoing recovery and broad economic stabilization, the Global Finance website said.

Investors have good reason to be enthusiastic. Sri Lanka's GDP moved up 8% in 2010, and forecasts are for a repeat of that figure this year. Inflation, which the IMF says will clock in at 7.9% in 2011, is high but well under control, the website added.

Foreign investment, particularly from China, is rising. Reflecting its increasing comfort with the economy's trajectory, the IMF which has a $2.5 billion stand-by agreement with the government recently decided to shift from quarterly to semiannual reviews.

Since the country's 26-year civil war between the government and the separatistTamil minority ended in May 2009, tourists are returning in droves.

Read the full report at: http://www.gfmag.com/archives/141-september-2011/11351-investors-optimistic-on-sri-lankan-growth.html?#axzz1XHZjyapv