The Colombo Stock Exchange (CSE) in collaboration with the Securities and Exchange Commission of Sri Lanka (SEC) will host a Capital Market Conference in Sri Lanka on Thursday the 9th of October 2014. The event is scheduled to be held at the Cinnamon Lakeside Hotel in Colombo. His Excellency the President Mahinda Rajapaksa will inaugurate this conference.
The conference will bring together capital market industry participants and Institutional investors. The conference would provide an excellent opportunity to understand the potential investment opportunities available in the capital market and post war economic growth. Participants will be able to meet and interact with the Government, Regulators, Issuers and Market Intermediaries and hold one to one meetings with companies listed on the CSE. Institutional fund managers from East Asia, South Asia, Middle East, UK, Europe and the US are expected to attend the event.
A distinguished panel of speakers will address the gathering at the conference on investment opportunities available in the Sri Lankan capital market as well as experiences of investing in Sri Lanka. Secretary of the Treasury Dr.P.B Jayasundara, Governor of the Central Bank Mr. Ajith Nivard Cabraal, the Chairman of the Securities and Exchange Commission of Sri Lanka and the Chairman of the Colombo Stock Exchange have been invited to speak at the forum.
During the post war period the broad market index of the CSE, the ASPI has recorded a growth of over 300% from 1,800 to 7,200 level. The total value of the market, Market Capitalization too has appreciated significantly by over 350%. The Average Daily Turnover of the CSE has gone up from Rs 464 Mn to Rs 1,200 Mn in five years since 2009. During the post war period the Net Asset Value of Unit Trusts has gone up from Rs 6.7 Bn to Rs 75.7 Bn (1,029%).
The economy is expected to reach a level of over US$ 4,000 per capita before 2016. Accordingly, gross investment needs to rise above 33 % of GDP. Reducing the savings investment gap alone would notpromote growth. It is equally important to recognize mechanisms that could mobilize savings to productive investments. The Government has recognized the crucial role of the local equity market in mobilizing local and foreign investments towards productive and efficient investments in Sri Lanka.
This forum is part of a series of activities planned by the CSE and the SEC to educate local and foreign Investors of the investment opportunities available in the capital market of Sri Lanka. The two institutionsrecently concluded successful investor forums in Mumbai, Dubai, Hong Kong, ingapore, London and New York. In addition forums have been conducted throughout the country to educate the general public as well as other stakeholders. Forums of this nature had a positive impact on the market.
The CSE has recorded a YOY growth of 22% and has become one of the best performing markets globally in 2014. Foreign investors account for nearly 30% of the total market turnover of the CSE and foreign investors continue to be the net buyers in the market with net purchases of Rs 10 billion in 2014. The total net foreign inflow during the last three years exceeds Rs 70 Bn. Platinum sponsors for the event are Ceylon Guardian, Citi Bank and NDB Capital Holdings while the silver sponsors are Deutsche Bank, Hong Kong Shanghai Banking Corporation and Sampath Bank PLC. The bronze sponsor for the event is Hatton National Bank PLC and Sri Lankan Airlines is the official airline partner. The forum comes at an important juncture when there is significant worldwide focus on Sri Lanka’s growth prospects and it is anticipated that the forum will generate an overwhelming response from fund
managers based overseas.