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Chapter 14 Reflection

This week while in Sri Lanka I met two investors who were discussing the current economic climate. The current interest rate in Sri Lanka is 14%, which makes it very attractive to leave money sitting in the bank. The older gentleman was close to retirement age, so at this point in life he is more interested in taking the action that will have a guaranteed result. The younger gentleman is more interested in building a legacy by founding new businesses. Because of the amount of capital required to start a business he recognizes that cash flow is critical for success, but is hesitant to take a loan from the bank because it would be difficult to stay afloat with such high payments. However, it can be difficult to persuade investors to take the risk on a new business, so additional incentives help.

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