Low interest rates, an added attraction:
Insurance industry has potential for growth
Charumini DE SILVA
At a time when the Colombo Stock Exchange (CSE), financial and other
instutions such as banks and leasing companies were becoming more active
due to the low interest rates and opening of the Central Bank capital
accounts the insurance industry has much potential for growth in the
local and international market, Securities
Securities and Exchange
Commission, Director General,
Channa de Silva |
and Exchange Commission, Director General, Channa de Silva told Daily
News Business.
He was speaking at the National Insurance Congress 2009 at the
Cinnamon Lakeside yesterday.
As an emerging market we feel the direct and indirect impact more
than the markets that were firmly established, given the fact that our
stock market recorded a 60 percent growth rate since May this year with
the ushering of peace.
The CSE is the fifth best performing stock market in the world with a
98 percent of return.
This is a significant achievement for us, which shows that foreign
investors are taking note of it.
We are assured of even further growth in the future, he said.
From left: Eagle Insurance PLC Chief Actuary, Frank Munro;
Institute of Actuaries UK, Immediate Past President, Chris
Daykin, Eagle Insurance PLC, Director Distribution/Life
Distribution, Upul Wijesinghe and Sri Lanka Insurance
Corporation, Actuary and Senior Consultant, Japp Plugge at the
head table. Picture by Sumanachandra Ariyawansa |
Though the United States and other industrial countries in the West
had held the international currency market, the world’s next economic
power would be Asia.
Countries such as China and India, which were not affected by the
global economic downturn, would contribute towards a new economic order.
Sri Lanka too has a role to play as an emerging market, de Silva said.
He said the country’s economy was performing well with inflation and
interest rates had been brought down to a single digit.
The Sri Lankan Rupee was stable against most international currencies
as the economy was strong even during the global economic crisis.
Therefore, international investors took an interest in the local
stock market and took to the industries and other economic sectors.
The Director General said the insurance industry too has to become an
international sector and to achieve that goal local insurance companies
should work together as an industry without seeking individual benefits. |