By Lynn Ockersz
‘The third anti-Lanka resolution passed by the UNHRC in late March this year is having no negative impact on Sri Lanka’s share market. The market, in fact, is doing very well, Securities and Exchange Commission of Sri Lanka chairman Dr. Nalaka Godahewa said.
Speaking to The Island Financial Review in an exclusive interview Dr. Godahewa explained that he had predicted, even before the latest resolution against Lanka was passed, that it would not adversely impact this country’s share market.’We were of the view that the resolution would in no way nagatively affect our share market in the immediate or mid terms. If at all anything is to happen it would be very much later, but there is enough time before that for things to change, he said.
The chairman also said in response to a question that more and more foreign funds are entering Sri Lanka’s share market. For instance, in 2013, there was a Rs 38 billion inflow of funds to the stock market through foreigners. More and more foreign funds are entering the market and these have been growing over the past two years in both value and numbers, he explained.
The SEC chief said in answer to another question that some misconceptions about the local share market which had been doing the rounds in the past, that is, 2011 and the early 2012 period, have now all been cleared up. Since the latter part of 2012, through 2013 to date, share market operations have been free of controversy, he observed. This is a beneficial result of the SEC consistently educating the public now on how investments ought to be made in the share market.
One such misconception which abounded among some sections of the public was the notion that the share market was dominated by a few who made money while the others did not. This view was current, for instance, close on the heels of the war ending, which saw many persons willing to invest in shares. Unfortunately, share transactions were likened by some of them to gambling in a casino, for instance, where quick and easy money could be made. These people did not understand the modalities of market behaviour. They lacked a knowledge of the market and of the best investment opportunities. As a result their expectations were not fulfilled and they thought something was wrong with the market.
Whereas, nothing was wrong with the market. A prospective investor must have a sound knowledge of the market and of the products available before he invests. Rather than expecting quick and easy returns, he must have a long term vision and should be willing to wait until his investment yields the expected returns, the SEC Head said.
www.island.lk
‘The third anti-Lanka resolution passed by the UNHRC in late March this year is having no negative impact on Sri Lanka’s share market. The market, in fact, is doing very well, Securities and Exchange Commission of Sri Lanka chairman Dr. Nalaka Godahewa said.
Speaking to The Island Financial Review in an exclusive interview Dr. Godahewa explained that he had predicted, even before the latest resolution against Lanka was passed, that it would not adversely impact this country’s share market.’We were of the view that the resolution would in no way nagatively affect our share market in the immediate or mid terms. If at all anything is to happen it would be very much later, but there is enough time before that for things to change, he said.
The chairman also said in response to a question that more and more foreign funds are entering Sri Lanka’s share market. For instance, in 2013, there was a Rs 38 billion inflow of funds to the stock market through foreigners. More and more foreign funds are entering the market and these have been growing over the past two years in both value and numbers, he explained.
The SEC chief said in answer to another question that some misconceptions about the local share market which had been doing the rounds in the past, that is, 2011 and the early 2012 period, have now all been cleared up. Since the latter part of 2012, through 2013 to date, share market operations have been free of controversy, he observed. This is a beneficial result of the SEC consistently educating the public now on how investments ought to be made in the share market.
One such misconception which abounded among some sections of the public was the notion that the share market was dominated by a few who made money while the others did not. This view was current, for instance, close on the heels of the war ending, which saw many persons willing to invest in shares. Unfortunately, share transactions were likened by some of them to gambling in a casino, for instance, where quick and easy money could be made. These people did not understand the modalities of market behaviour. They lacked a knowledge of the market and of the best investment opportunities. As a result their expectations were not fulfilled and they thought something was wrong with the market.
Whereas, nothing was wrong with the market. A prospective investor must have a sound knowledge of the market and of the products available before he invests. Rather than expecting quick and easy returns, he must have a long term vision and should be willing to wait until his investment yields the expected returns, the SEC Head said.
www.island.lk
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