Indrajith Fernando
(Director/ Chief Executive Officer (CEO) Bartleet TransCapital)

Lanka needs to develop agri sector

Sri Lanka is going through a regime of high bank interest rates, which discourages people to invest in other instruments like the share market and corporate bond markets in the country.

Hiran H.Senewiratne

Sri Lanka being an agriculture based economy needs to be developed concurrently with the financial sector as the majority of the population is involved in the sector.

Having a strong money market will enable to enhance the saving ratio in the country, Director/ Chief Executive Officer (CEO) Bartlect Trans Capital Indrajith Fernando said. He said one of the major problems hindering a strong financial market is the lack of awareness of the people in the country on the saving and investment habit.

Fernando said the agriculture sector of Sri Lanka has to be given special emphasise due to the looming food crisis not only locally but also internationally. Therefore food security and the safety are important factors now, which has not been given much importance by the respective authorities, he said.

With the world food crisis there is a great enthusiasm among the people in Sri Lanka to develop the agriculture sector to an organised level to pass the benefit to the public in the country, he said.

Domestic savings of Asians estimated rose to 28 per cent of the disposable income. This ranks as one of the world's highest. But in spite of this high savings rate, Asians are not still considered wealthy due to a lack of authentic financial plan.

He said investors in the normal course become content with savings and settle for whatever it produces without even realising of what it is really capable of. Saving money to meet future expenses is looked at but does not establish a connection between the purpose of like the dreams and savings which is left unexplored. Impulsive purchases of assets do not help in optimising the yield. It takes a systematic and a scientific approach.

Q: Bartleet TransCapital Limited provides financial market services in the country. How do you see the Sri Lankan financial sector at present?

A: Sri Lanka is going through a regime of high bank interest rates, which discourages people to invest in other instruments like the share market and corporate bond markets in the country.

This is not a healthy situation for the country for the development of a strong capital market in the country. This trend will have a short-term phenomenon, which is probably short lived. However, with all activities in the money/ capital market, Sri Lanka is one of the emerging markets in the region, which is only second to Pakistan.

Q: What problems do you see in the Sri Lankan capital market?

A: Today, I see one of the main problems is the lack of education among the public. Therefore, investor confidence lacks due to the non-availability of professional advice for long term investment opportunities where it has high- risk involvement especially for stocks. For long term investments it needs a lot of information on companies that are performing well. Long-term investments needs specialist advice.

Q: Bartleet TransCapital has introduced a new systematic investment process known as "wealth factor". What is this new concept?

A: I would answer this question this way. Firstly, wealth is the freedom to attain whatever you want, whenever you want to. There is nothing called the best investment we believe it is only the right mix. This planning process will be done according to each client's needs, customised to suit the individual and also dynamic to cater to changes.

This plan will help to grow, manage and protect assets without having the constant bother of monitoring the investor, which helps to achieve avenues to fulfill long term investment choices especially after the person's retirement.

Q: Bartleet TransCapital Limited is going to propose an integrated system to promote professional investment. What is your opinion?

A: We are going to introduce a network system to provide investment advise with the financial advisors, insurance consultants and Sri Lankan accountants. Further, we have signed a Memorandum of Understanding (MoU) with the Professional Investment Service (PIS) of Australia to adopt a success model, which is a joint venture.

Therefore, accountants, insurance consultants and financial advisors will work as a network to offer investment services to the public on the creation and preservation of wealth. We have also associations in India, Pakistan and other South Asian countries to provide credible advice to everybody.

Q: Today, the stock market is a very popular instrument for investment. But it still lacks the awareness level where short-term investments are concerned. How would do you look at this issue.

A: There are two types of investors in the share market that is trading portfolio. They are short term investors and the portfolio of investment people investing on a long term basis. For, portfolio investors they need proper and professional advice to invest them in good stocks in the Colombo Stock Market.

Q: Do you think that the Central Bank is responsible for the inflation to go up?

A: The role of the Central Bank is to stabilise the monetary system in the country. But going through the situation we cannot blame the Central Bank itself-alone. But I also could tell that inflation is high when a lot of development projects are happening in the country.

Q: How about the behaviour of the secondary market?

A: Our secondary market is doing reasonably well without foreign investors. Therefore, it is a strong market.

But I see that our liquid component is low compared to other countries in the region like Singapore and Malaysia. I also want to tell something about the Insurance sector, which only sell claims not risk to the public, which is a draw back in the sector.

Q: Just about your family?

A: My wife Sharaine is a medical professional and a university lecturer. We have two children, a son, Lakvy 15 years and a daughter, Chrismarie, 14 years.

I am very much a family man. I spend a lot of time with my family and we really enjoy each other. Both of them are schooling and studying for O/Ls. My son is the under 15 cricket captain at St. Thomans' Prep and daughter also involved in activities and sports.

Q: Who is the character most admired in your life?

A: My father, who is no more, taught me to work hard and my mother helped us to believe and pray. These fundamental things have really helped me to succeed in life. This generation of people lived a full life and enjoyed their simple in life. Dr G.C.B. Wijesinghe Senior Partner at KPMG who was like the Godfather of ICASL has also encouraged me.

Q: What are your future plans?

A: I wish to continue to serve the profession and society. In the South Asian region there are many challenges: poverty, corruption, governance issues and so on. I would like to make some impact on these pressing problems.

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Bio-data

Full Name : Asela Indrajith Fernando

Marital Status : Married, has two children

Professional : Fellow of the Chartered Institute of Management Qualifications(CIMA) UK, Fellow of the Institute of Chartered Accountants of Sri Lanka

Professional : President South Asian Federation of Accountants Affiliations 2007, Immediate Past President of ICA Sri Lanka 2006 todate

Work : Director/Chief Executive Officer Bartleet Experience TransCapital Limited, Bartleet TransCapital Pvt. Ltd (November 2004 to date),

Education : S. Thomas' College, Preparatory School Kollupitiya Sri Lanka (1967 -1976) and S. Thoma's College MountLavania (1977-1981).