Sri Lanka’s Central Bank Governor invites foreign equity investors to focus on Sri Lanka due to strengthening economy
Governor of the Central Bank of Sri Lanka, Dr. Indrajit Coomaraswamy has reportedly invited foreign equity investors to focus on Sri Lanka as prospects look better since a framework for strengthening the economy is currently in motion following stabilization measures.
The local media reported that speaking to a group of over 60 foreign institutional investors (FIIs) brought together to Colombo last week by leading stock broking firm CT CLSA, the Central Bank Governor has said the stabilization programme was progressing satisfactorily, with the Government putting in place a sound framework to strengthen the economy.
Dr. Coomaraswamy has noted that although last year’s disappointing 3.1% economic growth was due to adverse weather conditions and slower pace of reforms, the economy has the potential to grow by over 5%.
In his presentation to representatives from 25 FIIs from Europe, Asia, Middle East and Africa along with CT CLSA partners in Pakistan, Bangladesh and Vietnam, Dr. Coomaraswamy has reportedly detailed efforts made and successes in achieving macroeconomic stability, as well as the Government’s measures to better manage the fiscal deficit and other challenges, including moves to institutionalise recent achievements to ensure sustainability.
According to the FIIs that were in Colombo represented some of the largest and longstanding investors in Sri Lankan equities, as well as those who made significant contribution towards foreign inflows in to Sri Lankan equities in the last 18 months.
According to Dr. Coomaraswamy, factors influencing a higher economic growth this year and beyond include favourable weather conditions leading to a turnaround in agriculture sector, expansion in trade policy helping greater exports, as well as envisaged higher private sector investments, both local and foreign.
Reports further state that the enhanced revenue-driven fiscal consolidation policies, as well as better management of external debt and public sector reforms, are supporting the growth momentum as well among other factors.
The investors were also updated on the various reforms on-going and those planned, covering the Monetary Law as well as the public sector and ease of doing business. He said some of the reforms are with the support of the IMF, with whom the Government has an Extended Fund Facility programme.
“For the first time since 1955, Sri Lanka achieved a primary surplus last year and a surplus in the current account of Budget since 1987,” Dr. Coomaraswamy has been quoted as saying in the media.
The Sri Lankan government has outlined major development programmes for the country creating many investment/business opportunities for foreign investors/businesses. As stated by the Governor of the Central Bank, the measures taken by the government to strengthen the country’s economy has made Sri Lanka an attractive destination for business.
|Article Code :||VBS/AT/18052018/Z_1|