November 16, 2014, 12:00 pm
The strategy to conduct road shows in overseas locations has been successful in attracting foreign institutional investors to invest in the Lankan capital market
In a year that has proved to be record breaking, the Colombo Stock Exchange has reached yet another milestone in 2014 by recording its highest-ever inflow of foreign investment into the equity secondary market.
Foreign purchases in 2014 as at 14th November is Rs. 95,083.8 Million surpassing the previous highest foreign purchases of Rs.92, 425. 5 Million recorded in 2010.
The CSE in association with the Securities and Exchange Commission (SEC) initiated a strategy to attract foreign investors to the market, over the past two years. The strategy to conduct road shows in overseas locations has been successful in attracting foreign institutional investors to invest in the Lankan Capital Market.
These Forums have generated wide interest amongst international Fund managers and generated tangible results in the form of investments in equity and debt.
The "Invest Sri Lanka" Investor Forums were held in Mumbai, Dubai, Hong Kong, Singapore, London and New York and the purchases originating from these countries account for 60.3 per-cent of overall foreign purchases within 2014. The CSE also attractednew foreign entrants to the market, in 2014, from locations where these Investor Forums were hosted and they accounted for 44.4%.
Investors from the United Kingdom showed a remarkable interest in the market with the positive inflow from 2013 showing a phenomenal increase in 2014.
"It is only in the past 18 months that we have put serious capital to work and that is why I would say now is an excellent time to invest in Sri Lanka. I am very positive about the outlook of the Sri Lankan economy; in my opinion the best economic growth stories are very supply side led, here Sri Lanka can excel adding infrastructure where it did not exist before, Sri Lanka is adding port capacity to leverage its position on east-west shipment routes, developing itself into a transhipment hub, and working on more efficient and powerful power capacity - these very simple improvements will have a very large impact on the productive potential of the economy," Gordon Fraser, a Fund Manager, Member of the Emerging Markets Specialists Team, Blackrock said, during the Forum in London this May.
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