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*CB Governor tells RFCs
December 2, 2011, 7:38 pm
By Ravi Ladduwahetty
Central Bank Governor Ajit Nivaard Cabraal yesterday called upon the Registered Finance Companies to increase their non banking assets from Rs. 450 billion to Rs. 1 trillion, which, he said, will help Sri Lanka double its per capita income.
The Governor made these remarks, while addressing the Central Bank Directors’ Symposium for Non Banking Financial Institutions under the theme: "Repositioning the non banking sector for a sustainable and inclusive growth" at the Galadari Hotel yesterday.
He also said that Sri Lanka has benefitted from a resilient non banking sector which accounted for around 6% of the financial system. Substantiating this claim, he said that there were 38 Registered Finance Companies and 17 Sri Lanka with total assets to the tune of Rs. 455 billion, with a total lending portfolio of Rs. 354 million, deposits to the value of Rs. 182 billion and a network of 648 countrywide branches and that they provide financial services which were not covered by the banking sector. They also contributed to the overall stability to the financial stability of the financial system, he said.
The Governor also stressed that the US$ 50 billion economy was tipped to grow at a record 8.3% this year, up from a 32- year high of 8% posted in 2010 to the US$ 100 billion in 2016.
He also stressed that the market capitalization of the Colombo Stock Exchange would increase from the currentb30% of GDP to more than 70% by 2016.
He also said that it was important for the banking sector to reposition itself to maintain growth. One of the main factors that drew the attention of the governor was also the need for the private sector to borrow more funds from the global markets and he added that the domestic savings alone was insufficient for funding projects.
He also called upon the private sector to internationalize its approach by tapping international sources with significant foreign exchange inflows for various projects such as tourism, ports. Telecommunications and manufacturing and assembly industries along with the government’s infrastructure projects
He also said that Sri Lanka’s current strengths had to be made use of along with the macro -economic fundamentals and added that Sri Lanka remained resilient during the global financial crisis.
He also said that there was a need for improvement in the unemployment level which was 4.2% in the second quarter of 2011. Unemployment has been reducing from 7.7% in 2005, 6.5% in 2006, 6% in 2007, 5.8% in 2008 and 4.9% in 2010.
He also said that the fiscal deficit should also gradually reduced from the 8% of GDP to 5% of GDP by 2015. The Government debt to GDP was targeted to decline to around 60% by 2016 from the 79% in 2011, he said
He also said that the external reserves also should be maintained at comfortable levels. The maintenance of the stability of the exchange rates was also stressed upon.
Commenting in the need to making on the improvements in international rankings, he said that Sri Lanka is considered the second fastest growing economy in Asia and that Sri Lanka was upgraded to middle income emerging market status last year.
He also called upon the private sector to harness the required resources and build a platform to support the vision of the country’s vision by expanding the capacities, resources. Technology and outreach, enhance the capacity and the staff processes and enhance efficiency and productivity.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=40281
December 2, 2011, 7:38 pm
By Ravi Ladduwahetty
Central Bank Governor Ajit Nivaard Cabraal yesterday called upon the Registered Finance Companies to increase their non banking assets from Rs. 450 billion to Rs. 1 trillion, which, he said, will help Sri Lanka double its per capita income.
The Governor made these remarks, while addressing the Central Bank Directors’ Symposium for Non Banking Financial Institutions under the theme: "Repositioning the non banking sector for a sustainable and inclusive growth" at the Galadari Hotel yesterday.
He also said that Sri Lanka has benefitted from a resilient non banking sector which accounted for around 6% of the financial system. Substantiating this claim, he said that there were 38 Registered Finance Companies and 17 Sri Lanka with total assets to the tune of Rs. 455 billion, with a total lending portfolio of Rs. 354 million, deposits to the value of Rs. 182 billion and a network of 648 countrywide branches and that they provide financial services which were not covered by the banking sector. They also contributed to the overall stability to the financial stability of the financial system, he said.
The Governor also stressed that the US$ 50 billion economy was tipped to grow at a record 8.3% this year, up from a 32- year high of 8% posted in 2010 to the US$ 100 billion in 2016.
He also stressed that the market capitalization of the Colombo Stock Exchange would increase from the currentb30% of GDP to more than 70% by 2016.
He also said that it was important for the banking sector to reposition itself to maintain growth. One of the main factors that drew the attention of the governor was also the need for the private sector to borrow more funds from the global markets and he added that the domestic savings alone was insufficient for funding projects.
He also called upon the private sector to internationalize its approach by tapping international sources with significant foreign exchange inflows for various projects such as tourism, ports. Telecommunications and manufacturing and assembly industries along with the government’s infrastructure projects
He also said that Sri Lanka’s current strengths had to be made use of along with the macro -economic fundamentals and added that Sri Lanka remained resilient during the global financial crisis.
He also said that there was a need for improvement in the unemployment level which was 4.2% in the second quarter of 2011. Unemployment has been reducing from 7.7% in 2005, 6.5% in 2006, 6% in 2007, 5.8% in 2008 and 4.9% in 2010.
He also said that the fiscal deficit should also gradually reduced from the 8% of GDP to 5% of GDP by 2015. The Government debt to GDP was targeted to decline to around 60% by 2016 from the 79% in 2011, he said
He also said that the external reserves also should be maintained at comfortable levels. The maintenance of the stability of the exchange rates was also stressed upon.
Commenting in the need to making on the improvements in international rankings, he said that Sri Lanka is considered the second fastest growing economy in Asia and that Sri Lanka was upgraded to middle income emerging market status last year.
He also called upon the private sector to harness the required resources and build a platform to support the vision of the country’s vision by expanding the capacities, resources. Technology and outreach, enhance the capacity and the staff processes and enhance efficiency and productivity.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=40281
