‘Investor attention now on Asia’

Finance and Planning Deputy Minister and Senior Presidential Advisor, Dr Sarath Amunugama said the CSE has become a driver of economic growth.

At present, there is a tremendous change in capital inflows, he said speaking at the Investment Day 2010 held at BMICH yesterday.

SEC DDG Malik Cader, SEC Chairperson Indrani Sugathadasa and Finance and Planning Deputy Minister Dr Sarath Amunugama at the opening of the Investment Day 2010 held yesterday.

He said the expected economic recovery in the advanced western economies was sluggish and the investors have looked out of the box from their traditional markets. The investor attention is now focused into Asia and BRIC countries such as Brazil, Russia, India and China. “BRIC countries has shown an upward revaluation and as a result the currencies have become much stronger, while ASEAN countries also picking up. It is one of the reasons why the Chinese Yuan, Indian Rupee and also the Sri Lankan Rupee have appreciated. Sri Lanka is also emerging with greater potential. However, it is timely that the country aggressively be active and attracts the reversed funds flowing to Asia,” Dr Amunugama said.

“The country maintained an average economic growth of six percent and expects an eight percent economic growth during this year. During this favourable economic condition there has been a remarkable social transformation especially in the middle class community,” he said.

He said that the middle class people are getting richer, but the rural development has not improved. It is important that the disparity of these two should be removed. The benefits of the growth must trickle down to all segments of the society. The foreign exchange rates are stable with many foreign inflows and investors come in. The stock market will become more attractive with the reduced interest rates and the banking sector will have to have a good competition with the CSE.

“The expanded economic activities have increased the number of investments. However, it is necessary to have more companies listed in the CSE to have a better market capitalization. The time is right for Sri Lanka to think in a bigger picture in this economic transformation point,” Dr Amunugama said. (CdeS)