By Charumini de Silva
Minister of Investment Promotion, Highways and Higher Education Kabir Hashim this week outlined six areas the capital market must focus on for future development and asserted that Sri Lanka needs a strategised plan to attract Foreign Direct Investments (FDIs).
“There is a clear need to restructure our investment policies, while having consistent policies to win the trust of investors,” he told the inauguration of the 3rd Capital Market Conference 2015 under the title ‘Consolidation, Innovation and Initiative’ organised by the UTO EduConsult.
The Minister’s six areas of focus were increase listing of companies, market awareness and education, attracting foreign investors, developing new products, corporate debt market and developing unit trust market. Despite admitting that it was challenging, Hashim stressed that it was nevertheless possible.
He went on to say that despite the change in political leadership, the country should have a ‘national policy’ to attract FDIs, which would support capital growth of the economy.
“Attracting FDIs is not easy. We need to have the right balance of investments and confidence to compete in a global market. Thus, it is crucial to have consistent policies to ensure adequate foreign capital flowing into the country,” Minister Hashim added.
He highlighted that the lack of market liquidity had been a negative factor in attracting foreign investors to the capital market.
“Between March 2012 and March 2015, only nine additional companies have listed on the Colombo Stock Exchange (CSE). Many of these companies are Colombo-centric and it is important that we reach out for private companies outside Colombo to encourage listing in the CSE, while looking at attracting State-Owned Enterprises (SOEs) to get listed, which would enhance capital, transparency and good governance,” he noted.
The Minister emphasised that inclusive development was paramount for Sri Lanka and added that although the Government encouraged FDIs with special concessions, they would support and protect local enterprises.
www.ft.lk
Minister of Investment Promotion, Highways and Higher Education Kabir Hashim this week outlined six areas the capital market must focus on for future development and asserted that Sri Lanka needs a strategised plan to attract Foreign Direct Investments (FDIs).
“There is a clear need to restructure our investment policies, while having consistent policies to win the trust of investors,” he told the inauguration of the 3rd Capital Market Conference 2015 under the title ‘Consolidation, Innovation and Initiative’ organised by the UTO EduConsult.
The Minister’s six areas of focus were increase listing of companies, market awareness and education, attracting foreign investors, developing new products, corporate debt market and developing unit trust market. Despite admitting that it was challenging, Hashim stressed that it was nevertheless possible.
He went on to say that despite the change in political leadership, the country should have a ‘national policy’ to attract FDIs, which would support capital growth of the economy.
“Attracting FDIs is not easy. We need to have the right balance of investments and confidence to compete in a global market. Thus, it is crucial to have consistent policies to ensure adequate foreign capital flowing into the country,” Minister Hashim added.
He highlighted that the lack of market liquidity had been a negative factor in attracting foreign investors to the capital market.
“Between March 2012 and March 2015, only nine additional companies have listed on the Colombo Stock Exchange (CSE). Many of these companies are Colombo-centric and it is important that we reach out for private companies outside Colombo to encourage listing in the CSE, while looking at attracting State-Owned Enterprises (SOEs) to get listed, which would enhance capital, transparency and good governance,” he noted.
The Minister emphasised that inclusive development was paramount for Sri Lanka and added that although the Government encouraged FDIs with special concessions, they would support and protect local enterprises.
www.ft.lk
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