South Asian Exchanges formulate road map for the future, at regional conference in Colombo

Colombo:

The South Asian Investment Conference (SAIC) organised by the Colombo Stock Exchange (CSE) in association with the South Asian Federation of Exchanges (SAFE), took place today (27th April) at the Galadari Hotel, Colombo. The Minister of Finance Hon. Ravi Karunanayake, the Deputy Minister of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs Dr. Harsha De Silva, the Chairman of the Securities and Exchange Commission of Sri Lanka Mr.Tilak Karunaratne, Chairman of SAFE and Chairman of CSE Mr. Vajira Kulatilaka and outgoing Chairman of SAFE Dr. Muhammad Abdul Mazid addressed the audience at the inaugural ceremony. 

Following the inaugural session, decision makers from Member Exchanges of SAFE made presentations and took part in panel discussions; charting the course for the future development of regional Exchanges. 

“South Asia has emerged as the 2nd fastest growing region in the world, with predicted growth rates of 6 to 8 percent to be continued until 2025. Confidence of the investors will rest not only on growth rates, but will also on market integrity, good governance and transparency coupled with political stability and the political will to embrace foreign investment with the right spirit. All such ingredients are abundant in the current political regime in power,” Minister of Finance Hon. Ravi Karunanayake said. 

“All of us in the SAFE are facing similar situations as developing countries, the need to and are elevate poverty and create a strong middle class. However Exchanges always develop instruments for the rich, for those who can invest Millions; they don’t pay enough attention to the small and medium enterprises. In order to create a market where, various investors are able to invest, we need to provide diverse asset classes for investment. Therefore we need to cooperate and create these various asset classes and present South Asia to the world as a unified whole that also serves the bottom of the pyramid. We also need to compete amongst ourselves I do not think that the extremes can compete, however markets of similar size can. However we need to formulate a structure where we can all compete and we all win,” Deputy Minister of Policy Planning, Economic Affairs, Child, Youth and Cultural Affairs Dr. Harsha De Silva said. 

“As we begin to show the various facets of our Exchanges, international investors who have been viewing this market cautiously as a risky investment have now changed their minds. All international investors now want to come to this part of the world, mainly because of high growth and the possibility of diversification. Therefore, I think we have a great opportunity to take SAFE to a different level. This conference which is aimed at exploring the true investment potential of our region, is a relevant forum to highlight the combined strength of South Asia. The conference has looked at the development of new products, and towards bringing diversity in investment choices to international investors,” Chairman of SAFE and Chairman of CSE Mr. Vajira Kulatilaka said. 

“Traditionally capital markets are considered as powerful engines of economic growth that mobilize savings towards productive corporate financing. Even though the role of the capital market is widely accepted, developing a robust and efficient capital market is a difficult task for many emerging economies – nonetheless we should work towards developing significant improvements in the capital markets of the region ,”Chairman of the SEC Mr.Tilak Karunaratne said. 

“South Asia is at the very brink of attaining new heights in the global order and this is witnessed through our capital markets. It is vital to sustain this momentum of growth, which is in our collective best interest. Thereby, integration allows for the less developed markets to grow exponentially by exposure to higher developed markets,” Outgoing Chairman of SAFE Dr. Muhammad Abdul Mazid said. 

Local Capital Market representatives, including CEO’s from Member Firms of the CSE and CEO’s from Unit Trusts and other market intermediaries will also attend the event. 

The sponsors of the SAIC are Thomson Reuters, MillenniumIT, Treet Corporation Limited, the Chittagong Stock Exchange, NDB Bank, BNP Paribas, Cyan Limited, Efu General Insurance, Hascol Petroleum, AKD Securities and Softlogic Stockbrokers and Lanka Securities (Bronze sponsor for Gala Cultural Night ).