This website here shows a comprehensive comparison of term deposit rates in Sri Lanka.
Currently you can get a 12 month term deposit at a rate of 10.75% with an AA+ rated bank.
Compare this to what I could get in Australia - and you're looking at about 2.25% for a 12 month term deposit.
Now ok - 'Inflation is higher in Sri Lanka' you say.
Looking at this website - we can see that over the last 5 years inflation has swung between 1% and 8% and that it's currently around 5%.
Australia on the otherhand, has been between 1% and 3% and is currently about 1.25%.
Ugh.. ok I think I've answered my own question - it seems like in both cases the term deposit rate is about 2x inflation.
So to turn this into a useful question - is there a scenario where doing a term deposit in a developing country can be considered about similar risk/reward as an index fund in a developed country?
The context is - my partner is Sri Lankan and has savings in Sri Lanka - and it's a question of whether she should just continue with her savings in a term deposit there - or whether it's worth moving that money to Australia and putting it in an index fund.