Corporate leaders must act positive despite obstacles - HNB Chairman

Ramani KANGARAARACHCHI

Corporate leaders must act positively to make the best use of present opportunities in tourism, health and education sectors without considering obstacles.

Speaking at the panel discussion of the CIMA CEO Forum on Tuesday on Private equity: an unused option , HNB Chairman Rienzie Wijetilleke said getting approval for various projects is a major obstacle.

He hoped this situation will improve with public and private sector reforms which has to be done without delay. “Many things have to be in place before people get confidence.”

If projects go along smoothly, bank credits will also start improving making a positive impact, he said.

Wijetillake said that inflow of funding to SMEs is a must today to develop the rural economy because the situation in the country five years ago was different and changes are required to suit the present scenario.

“There should be an attitude change in all parties concerned and real growth is creating employment for the people.

He said lot of companies enter into venture capital but get into trouble due to lack of management supervision. Therefore sourcing will have to be from large corporates.

International Monetary Fund Resident Representative Koshy Mathai said availability of finance for large companies in Sri Lanka is not a problem but it is very difficult for SMEs.

Developing the bond market is a solution to this. Private equity and increase listings on the stock exchange are other ways.

RAM Ratings Lanka CEO Adrian Perera said companies must know their investor and how well they could take the structure.

The forum addressed how private equity financing had seen tremendous growth in the Asian and Middle Eastern markets in the past few years, benefits of private equity to the corporate sector, ways and means of attracting private equity investors, and finally drawbacks that one may encounter in sourcing finances through private equity.