Sri Lanka’s Central Bank Governor tells foreign investors of absolute buying opportunity in CSE
Governor of the Central Bank of Sri Lanka Dr. Indrajit Coomaraswamy has reportedly told foreign institutional investors that the Colombo stock market (Colombo Stock Exchange) is an “absolute buying opportunity.”
The Governor has made this observation while addressing the fourth CT CLSA Asia Frontier Forum which kicked off yesterday (11)..
Dr. Coomaraswamy has reportedly said “macroeconomic fundamentals are good” though in recent months there has been net foreign outflow.
It was pointed out that the reduction in policy rates by 50 basis points recently was a boost for investment in listed equities, the local media reported.
According to the Governor, the global investor community and financial markets have adjusted post-Easter Sunday setback.
He has further stated that as of 18 April the rupee had appreciated by 4.6% and as of 7 June, the appreciation remained at 3.6%. “There is a fair degree of stability,” he added.
The Governor has been quoted in the media as saying that since 21 April, there had been six Treasury Bill issuances and yields have come down whilst the country also saw the largest ever Bond auction worth Rs. 120 billion. In terms of Sri Lanka’s International Sovereign Bonds (ISBs) the yields have more or less remained intact, he said adding that markets are still favourable to Sri Lanka.
“Investors know that Sri Lanka will do whatever to honour its external payments,” the Governor has added.
OSL take:
The statement by the Governor of the Central Bank of Sri Lanka is a positive sign on the investment opportunities in Sri Lanka. Multilateral and bilateral financial agencies have expressed confidence in Sri Lanka by extending financial support for the country’s development programme. Therefore, foreign investors could confidently explore investment opportunities in the Sri Lankan economy.
| Article Code : | VBS/AT/13062019/Z_1 |