Sri Lanka to commence virtual road shows to strengthen investor relations
Sri Lanka’s State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal has reportedly stated that the government of Sri Lanka will commence regular virtual road shows to strengthen investor relations following the announcement of the National Budget for 2021 in Parliament next month.
“Those interactions will provide further clarity on the Government’s medium term fiscal and financing plans, as well as keep Investors posted on the progress relating to the economic initiatives of the new Government,” the State Minister has said.
Commenting on the Government’s commitment to its Investors as deep and unwavering, Cabraal, who is a former Central Bank Governor, has been quoted as saying in the Daily News, “Sri Lanka re-affirms to foreign investors that it remains willing and able to meet its debt obligations, as it has done impeccably in the past.”
All payment transactions for the repayment of the International Sovereign Bond of US$ 1 billion which matured on 4 October 2020 were lined up, and funds were credited to the paying agent’s account on 2 October2020, the local media report stated.
“Official reserves of the CBSL increased to US$ 7.4 billion by end August 2020. The recently introduced measures to entice foreign investors to the government securities market and the real economy through an attractive foreign exchange SWAP arrangement are likely to help enhance foreign currency inflows,” he has stated
“This is in addition to the support of friendly countries, such as the SWAP arrangement of USD 400 million with the Reserve Bank of India in July 2020, and the expected disbursement of the 2nd tranche of the Foreign Currency Term Financing Facility of US$ 700 million from the China Development Bank in October 2020,” Cabraal has further noted.
He has added, “Sri Lanka’s policy environment remains facilitative of enabling high economic growth beyond the recovery phase while preserving the macro-economic stability and the public enterprise management improvements planned will be designed to get to the 25th rank in “Doing Business” Indicators by 2025.”
OSL take:
The government of Sri Lanka is in the process of gearing to brace for the economic activities that would open up when the global Covid 19 pandemic eases. Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region. Therefore Sri Lanka’s economic activities will see a quicker return to normal than other economies. Foreign businesses/investors could therefore explore business opportunities in Sri Lanka.
| Article Code : | VBS/AT/13102020/Z_3 |