Sri Lankan financial research company sees accelerated economic recovery for the country
Sri Lanka’s First Capital Research has reportedly stated that the country was likely to experience an accelerated economic recovery since the months after the Easter Sunday attacks had shown a faster return to normalcy, quicker removal of travel advisories, and unexpected signs of resilience.
First Capital Research in its latest update has stated that despite the Easter Sunday attacks, Sri Lanka’s economic outlook has shown signs of resilience and ability to recover quickly, as economic activities were seen returning to normalcy while removal of travel advisories were faster than anticipated.
“Though the unfortunate attacks and the subsequent events are likely to have directly or indirectly impacted all sectors, affecting earnings of most companies, we believe that the impact has now been factored into the market and an accelerated recovery is more likely than not,” First Capital has been quoted as stating in its latest update published in the local media.
The successful and early issuance of the US$ 2 billion Sovereign Bond by the Central Bank of Sri Lanka (CBSL) was also a major confidence booster, and the heavy investor interest, which was reflected by the three times oversubscription, was seen as encouraging by First Capital Research.
According to the research company, with most economic indicators such as inflation, credit growth and liquidity suggests decline in yields, strong reserve position supports sustainability of the lower yields. In line with expectations Bank 1-Yr FD ceiling has fallen to 9.83% as of 1 Jul 2019.
OSL take:
The report by First Capital Research is an expression of confidence in Sri Lanka’s economy and growth. As pointed out by the research company, Sri Lanka has shown excellent signs of returning to normalcy following the Easter Sunday attacks. Also, the resilience shown by the island when faced with adverse situations has resulted in the increase in business/investor confidence in Sri Lanka. Therefore, foreign businesses/investors could explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/05072019/Z_1 |