Huge expansion program:
Nextfinance to raise Rs180m
In share issue:
Sanjeevi Jayasuriya
[Nextfinance Limited]
* Healthy level of confidence- positive impact
on finance companies
* Nextfinance Limited to be a major
contributor to the economy
* Huge investment potential in war affected
areas
Nextfinance Limited one of the oldest finance companies in the
country plans to raise Rs 180 million through a share issue. The
Nextfinance is also in the process of listing the company in the Colombo
Stock Exchange by mid 2011.
Nextfinance CEO
Dammika Siriwardhana Picture by Saliya Rupasinghe |
The company’s huge expansion program includes setting up three
branches during the year, Nextfinance Limited Chief Executive Officer
Dammika Siriwardhana told Daily News Business.
“There is a healthy increase in the level of confidence among the
domestic investors and this has a positive impact on registered finance
companies in attracting funds.
The country’s main focus for the next five years would be on economic
development and being a registered finance company, we strive to be a
major contributor in this process,” he said.
The end of war and the low interest regime has provided impetus for
the investor sector to grow and the high performance of the stock market
too has fuelled the growth in the sector. This indicates that the
country’s business strategies are on a clear path, he said. The
confidence level of the domestic investors was at a low ebb due to
failed unregistered companies carrying out finance business.
However, the situation is now changing for the better and liquidity
levels are improving, he said. “The company will introduce new products
and services of fee and fund based activities. We target to generate
funds through equity to improve liquidity problem and to reduce the
dependability of fixed deposits. We need to be innovative in catering to
the niche market as traditional financing products have limited demand.
There is potential for a registered finance company to capture this
market,” Siriwardhana said.
The company plans to launch property homes, to deal with property
sales to improve our fee income.
Steps will be taken to capitalize the improvement in the real estate
market by launching two projects in Veyangoda and Wellawaya. There are a
few other real estate projects in the pipeline, he said. The reduction
in deposit and lending rates offered by the commercial banks has
positively contributed for an increase in the demand for the financial
instruments offered by the registered finance companies.
This has created a shift in the savings in the commercial banks to
finance companies thereby enhancing the demand, he said.
“We are willing to take a reasonable and calculated risk as there is
huge investment potential in the war affected areas.
The development drive in the North and the East provinces in the
sectors such as infrastructure and telecommunication have created
opportunities for investments.
This has enabled the finance companies to play a role in the leasing
and hire purchase requirements,” he said. |