Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» AAIC - Profit over one billion!!!!!
by wisdom79 Today at 7:36 pm

» Positive News
by Promoney Today at 7:24 pm

» Bansei Royal Resorts BRR up 23%
by Invest-Wise Today at 4:52 pm

» BIL පුපුරා යාමට ආසන්නයි
by Winner123 Today at 4:30 pm

» Market again heading to 4800? :D
by Ahcha Today at 3:38 pm

» RAL....RAL, Renuka Agri
by nirowat Today at 3:33 pm

» Massive Fraud At AEL subsidiry
by ThilinaM Today at 2:30 pm

» Just About Prima Glass – GLAS
by KOLAA Today at 1:18 pm

by Eugine Fernando Today at 12:51 pm

» SEMB.N predictions
by 4Corners Today at 10:14 am

by CITIZEN Today at 10:10 am

» After Advanced level what is
by lankaspeaker Today at 9:57 am

» LOTUS TOWER economy
by CITIZEN Today at 9:55 am

by Ahcha Today at 7:21 am

by Teller Yesterday at 11:23 pm

» Why AAIC Should trade above RS.50/-
by wisdom79 Yesterday at 7:56 pm

» Stupid fucking UNP and ranils ass hole economics
by samaritan Yesterday at 7:14 pm

» KAPI (MDT Walkers PLc)
by samaritan Yesterday at 7:12 pm

» Learn To Invest Yourself.
by Asoka Samarakone Yesterday at 5:56 pm

by Beta1 Yesterday at 3:12 pm

» lOFC definitely will hit 6/-
by Teller Yesterday at 1:04 am

» Renuka managemnt Treat SH as Trash
by Sanju121 Sun Sep 15, 2019 5:36 pm

» Blue Diamonds Voting & Non Voting
by Ahcha Sun Sep 15, 2019 6:35 am

» MULL trade up possibilities
by crs Sat Sep 14, 2019 7:22 pm

» MARA marai
by SECsux Fri Sep 13, 2019 6:22 pm

by Eng Krishantha Fri Sep 13, 2019 5:06 pm

» LIOC shares
by lakmal Fri Sep 13, 2019 12:47 pm

» JKH will touch 175 very soon
by Rare Fri Sep 13, 2019 11:10 am

» ඇවන්ගාඩ් අල්ලස් නඩුවෙන් ගෝඨාභය නිදහස්
by samansilva Fri Sep 13, 2019 12:25 am

» Invest AEL and TKYO return more than 30%...
by samaritan Thu Sep 12, 2019 5:15 pm

» Watch Out for MAL.X
by Cricketman Thu Sep 12, 2019 1:56 pm

by Sanju121 Thu Sep 12, 2019 1:02 pm

by Sanju121 Thu Sep 12, 2019 12:28 pm

» BIL. N mandatory offer at Rs 6.80
by Equityinvestor Thu Sep 12, 2019 12:05 pm

» PAP vs RAL
by Teller Thu Sep 12, 2019 11:04 am

by Ahcha Thu Sep 12, 2019 10:40 am

» Look PAP Amazing company
by reyaz Thu Sep 12, 2019 10:21 am

by ThilinaM Thu Sep 12, 2019 9:56 am

by Sanju121 Thu Sep 12, 2019 9:45 am

by samaritan Thu Sep 12, 2019 7:39 am

» Kzoo vs onal
by fireshelter Wed Sep 11, 2019 5:56 pm

» Still you can Enter to CFVF.N0000 :
by Trader321 Wed Sep 11, 2019 4:55 pm

» Only equity stocks are discussed here!
by reyaz Wed Sep 11, 2019 4:36 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Diversification of Sri Lankan economy, must to garner more economic benefits

Diversification of Sri Lankan economy, must to garner more economic benefits

Go down  Message [Page 1 of 1]


Equity Analytic
Equity Analytic
Diversification of Lankan economy, must to garner more economic benefits
Diversification of Sri Lankan economy, must to garner more economic benefits Z_pi-Diversification

Thilan Wijesinghe
The diversification of Sri Lankan economy and the greater representation of the diversified companies in the local stock market will help Sri Lanka to better garner more economic benefits, Thilan Wijesinghe, Chairman of National Agency for Public Private Partnership said.
Noting that Sri Lankan government doesn’t have any more low hanging fruits to generate economic growth due to its inability to focus on issues relating to the micro level, especially when it comes to problem solving and execution, he said that it is important to address sources of revenue linkages, divesture of minority stakes and dead assets in certain SOEs, introduce SOEs reforms through PPPs and SOEs efficiency through process improvements to achieve set targets in the economy.
“We have a fantastic Central Bank and have a great brain trust in the Finance Ministry, but we have not been able to address issues at the micro level especially when it comes to planning, problem solving and execution.” he told at the 7th edition of Capital Markets conference held in Colombo yesterday.
Noting that PPP process is not working efficiently, in Sri Lanka, he said country is using limited policy options for the fiscal consolidations. He also pointed out that implementation priorities should create a virtual circle of investor confidence, private capital inflows, SOE reforms and capital market deepening to reduce fiscal dependency on the treasury.
The PPP Agency needs to facilitate PPPs and divesture through common set of guidelines.SOE reforms and efficiency building should be multifaceted; it shouldn’t not be just one formula. Divesture and privatization is only one formula. There are other models where you can take unproductive assets, just like what happened with in the case of Hambantota Port. The Hambantota Port loan was eating into all the profits that Colombo port was making. And the moment, the repayment of that loan was taken off, Sri Lanka Ports Authority balance sheet became profitable and US $ 1.2 billion was received by the government.” he said.
He pointed out the need to divest non strategic assets of SOEs to strengthen the SOE balance sheet and dividends of the treasury.

Noting that most boards of loss making state enterprises comprise political appointees, Wijesinghe stressed that the Finance Ministry should look at the advisory or executive boards predominantly, manned by Finance Ministry officials as the final beneficiary of all these state owned enterprises is the Finance ministry.
Citing an example to prove this he said that the Building Materials Corporation (BMC) is not in a position to service its Rs. 600 million loan due to insufficient income. However, he said BMC has Rs. 6 - 7 billion worth of unproductive prime lands.
Furthermore, he cited sectors such as tourism, Ports, Shipping and Aviation, Knowledge based services, Financial services and Agri business as key economic drivers in the country.
Speaking on capital market, he said capital market is a curial link in mobilizing private sector financing, however he said that limited availability of long term debt, single borrowing limits, limited liquidity, under developed derivatives market, high transactions costs, and legal and regulatory impediments are some of the major impediments that hamper the growth of the market to a great extent.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum