Dec 03, 2014 (LBO) – Sri Lanka’s Securities and Exchange Commission (SEC) said that, they are very much near in achieving targets which were set in 2012 to address the limitations of the market and to develop the overall capital market.
“We are very much near achieving our targets,” Nalaka Godahewa, the Chairman of Securities and Exchange Commission told LBO.
“We have only completed two year and we have another year left.”
The SEC and Colombo Stock Exchange point out a three year market development plan or 10 point action plan in November 2012 addressing seven areas, strengthening regulations, upgrading infrastructure, expanding product portfolio, increasing market liquidity, improving capital market awareness, increasing foreign participation in CSE and de-mutualizing the CSE.
“There are three things left to be done,” Godahewa said.
“First one is the implantation of the new SEC act. Ministry consultant committee is going though that and as soon as if finishes we will move on the next phase of capital market development,”
“Second is the de-mutulization of Colombo Stock Exchange and again the initial proposal of the CSE is completed and within the next couple of weeks or months we will deliberate that and make our recommendation to the ministry,”
“The third most important thing is implementation of CCP (Central Counter Party System). It’s a joint initiative of Central Bank, SEC and CSE. So the constant’s are studying and negotiating. We are looking at 12 months to 18 months period with CCP. So in mid-2015 or end-2015 the CCP will be in place.”
“So those three things are not completed yet but the act is already handed over to the prime minister of fiancé and as soon as the minister of finance present it to the parliament it is ready to go after the debate.”
Godahewa also said that SEC expects the market capitalization to GDP to grow 40 – 50 percent by end 2015.
“In our 3 year action plan which was launch 2012, we spoke about market capitalization to percentage of the GDP 40-50 percent by 2015,” Godahewa said.
“Today our market capital GDP ratio is 37 percent. So we are moving well and it’s very likely by end 2015 we will be move ahead from where we are.”
In 2012 the market capital GDP ratio was 20 percent Godahewa said.
“We are very much near achieving our targets,” Nalaka Godahewa, the Chairman of Securities and Exchange Commission told LBO.
“We have only completed two year and we have another year left.”
The SEC and Colombo Stock Exchange point out a three year market development plan or 10 point action plan in November 2012 addressing seven areas, strengthening regulations, upgrading infrastructure, expanding product portfolio, increasing market liquidity, improving capital market awareness, increasing foreign participation in CSE and de-mutualizing the CSE.
“There are three things left to be done,” Godahewa said.
“First one is the implantation of the new SEC act. Ministry consultant committee is going though that and as soon as if finishes we will move on the next phase of capital market development,”
“Second is the de-mutulization of Colombo Stock Exchange and again the initial proposal of the CSE is completed and within the next couple of weeks or months we will deliberate that and make our recommendation to the ministry,”
“The third most important thing is implementation of CCP (Central Counter Party System). It’s a joint initiative of Central Bank, SEC and CSE. So the constant’s are studying and negotiating. We are looking at 12 months to 18 months period with CCP. So in mid-2015 or end-2015 the CCP will be in place.”
“So those three things are not completed yet but the act is already handed over to the prime minister of fiancé and as soon as the minister of finance present it to the parliament it is ready to go after the debate.”
Godahewa also said that SEC expects the market capitalization to GDP to grow 40 – 50 percent by end 2015.
“In our 3 year action plan which was launch 2012, we spoke about market capitalization to percentage of the GDP 40-50 percent by 2015,” Godahewa said.
“Today our market capital GDP ratio is 37 percent. So we are moving well and it’s very likely by end 2015 we will be move ahead from where we are.”
In 2012 the market capital GDP ratio was 20 percent Godahewa said.
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