WHY FOREIGN FUND MANAGERS AVOID CSE

Well said

When regime change all the policies are changed and they turn the economy upside down.

I think we nedd national policy which will not change with the regime

Remove Ravi k is a must requirement

Teller wrote:Remove Ravi k is a must requirement

I dont think that is possible because Ravi has a UNP political base and what we are possible to protest against bad elements of the budget via strong collective action

LTV 70/30 to 90/10 and back to 70/30.

 So, there is a clear imbalance between the left & Right brain, if at all there is a brain.

The role played is "Ray Daniel Dawal Migel".

GameUP1030 wrote:

Teller wrote:Remove Ravi k is a must requirement

I dont think that is possible because Ravi has a UNP political base and what we are possible to protest against bad elements of the budget via strong collective action

why none of you guys not interest of these taxes, hena hathama gahanna oni me vidiyat a data gahanawta

samaritan wrote:IT WAS ONLY RECENTLY THE FOREIGN MINISTER WENT TO ATTEND THE SEMINARS HELD IN WESTERN COUNTRIES TO PROMOTE THE CSE. EXPLAINING THE BENEFITS IN INVESTING IN THE CSE AS AN EMERGING MARKET. FAIR ENOUGH.


 SAY,IF SUBSEQUENTLY CONVINCED BY THE PERSUASION OF THE FM SOME FUND MANAGERS IDENTIFY OUR BANKING SECTOR TO BE ATTRACTIVE TO INVEST(WHICH WAS A FACT) AND INVEST LARGE SUMS OF THEIR FUNDS.


AFTER THAT AND NOT VERY LONG AFTER THE PROMOTIONAL TOUR THE FM IMPOSES A BAN ON THE BANKS FROM DOING LEASING BUSINESS IN THE FORTHCOMING BUDGET NEGATIVELY IMPACTING THEIR PROFIT MARGINS.


WHAT WOULD BE THE PLIGHT OF THE FOREIGN INVESTMENTS THAT CAME INTO THE BANKING SECTOR?????????????????????????? OVERNIGHT THEY ARE BOUND TO LOSE SUBSTANTIAL SUMS. HENCE, THE PROMOTION AMOUNTS TO AN INVITATION TO GET SCREWED.


SO, ITS CLEAR THAT THE FOREIGN FUND MANAGERS WANT TO SAVE THEIR BACKSIDE BY SHUNNING THE CSE.


MEMBERS COMMENTS ARE MOST WELCOME ON THE ABOVE.

Why do Foreign fund managers worry about only bank shares?There are ample opportunities in others sectors in the budget.Manufactoring ACL,KCAB,etc ;Property sector OSEA...;Other financial institutions LFIN.VFIN,PLC,CFIN,LOFC...

Yahapalanaya wrote:

Why do Foreign fund managers worry about only bank shares?There are ample opportunities in others sectors in the budget.Manufactoring ACL,KCAB,etc ;Property sector OSEA...;Other financial institutions LFIN.VFIN,PLC,CFIN,LOFC...

Because some of those are too small for a fund manager. So they find liquidity issues when they want to exit. 
If we assume fund managers aim to invest about £50m to £100m in a small emerging market. In rupees its like 10bn to 20bn. Thats a huge amount of money....

things get changed overnight in Sri lanka, they bring something today and someone opposes it tomorrow and they will reverse it, this  is why foreign fund managers doesn't want to invest here.

Yahapalanaya wrote wrote:
Why do Foreign fund managers worry about only bank shares?There are ample opportunities in others sectors in the budget.Manufactoring ACL,KCAB,etc ;Property sector OSEA...;Other financial institutions LFIN.VFIN,PLC,CFIN,LOFC...
:roll: :roll: :roll:

Its up to them to decide on the sectors they wish to invest based on the fundamentals of the particular share at the time they make the decision, unless they were cautioned of stupid changes of this nature.  

Imagine a situation where they have invested in Finance Companies and if the FM introduces a surtax of 25% on Finance Companies only.

So, who allows a safety margin for stupid changes of this nature?????

All regime has been testing trial & errors. Bad aspect is overnight changes in such practices. Policy decisions are to be made after long brainy sessions though no perfect solution is achieved.

I know one company with foreign capital and expertise collaboration  was investing to establish renewable energy connected electric car charging stations in Sri Lanka.
I cannot imagine what will happen to their plans and already spent money.
Last month I saw foreign personnel from charging equip supplier they selected were doing some work in Colombo.

This is the most unsuccessful budget in the history. Farmers strikes, fertilizer subsidary was given. Bike and threewheeler were realesed from omission test. And many more changes will happen further.
So they can earn estimated tax from the budget??? Deficit will be widen and many more loans to be granted to balance the budget.

samaritan wrote:

Yahapalanaya wrote wrote:
Why do Foreign fund managers worry about only bank shares?There are ample opportunities in others sectors in the budget.Manufactoring ACL,KCAB,etc ;Property sector OSEA...;Other financial institutions LFIN.VFIN,PLC,CFIN,LOFC...

Its up to them to decide on the sectors they wish to invest based on the fundamentals of the particular share at the time they make the decision, unless they were cautioned of stupid changes of this nature.  

Imagine a situation where they have invested in Finance Companies and if the FM introduces a surtax of 25% on Finance Companies only.

So, who allows a safety margin for stupid changes of this nature?????

We cannot stay with same tax system to please those so called fund managers.We have to change tax system suitable to our country.Wait and see how those so called fund managers will come...

chamith wrote:

Yahapalanaya wrote:

Why do Foreign fund managers worry about only bank shares?There are ample opportunities in others sectors in the budget.Manufactoring ACL,KCAB,etc ;Property sector OSEA...;Other financial institutions LFIN.VFIN,PLC,CFIN,LOFC...

Because some of those are too small for a fund manager. So they find liquidity issues when they want to exit. 
If we assume fund managers aim to invest about £50m to £100m in a small emerging market. In rupees its like 10bn to 20bn. Thats a huge amount of money....

OTHER SHARE
OSEA 19 Billion rupees worth shares
PLC    30 Billion rupees worth shares
LFIN   17 Billion rupees worth shares

BANKING SHARES
NDB  32 Billion rupees worth share
NTB   19 Billion rupees worth share

Above some of bank shares and other sector shares.I couldn't agree with your argument.

Yahapalanaya wrote:

chamith wrote:

Yahapalanaya wrote:

Why do Foreign fund managers worry about only bank shares?There are ample opportunities in others sectors in the budget.Manufactoring ACL,KCAB,etc ;Property sector OSEA...;Other financial institutions LFIN.VFIN,PLC,CFIN,LOFC...

Because some of those are too small for a fund manager. So they find liquidity issues when they want to exit. 
If we assume fund managers aim to invest about £50m to £100m in a small emerging market. In rupees its like 10bn to 20bn. Thats a huge amount of money....

OTHER SHARE
OSEA 19 Billion rupees worth shares
PLC    30 Billion rupees worth shares
LFIN   17 Billion rupees worth shares

BANKING SHARES
NDB  32 Billion rupees worth share
NTB   19 Billion rupees worth share

Above some of bank shares and other sector shares.I couldn't agree with your argument.

Did u mean couldn't agree with you more ?

Its actually interesting to look into this issue;
For example as you mention PLC's market cap is around Rs 34bn. But out of this 75% is held by people's bank. So you can get an idea of how much is actually available in the market.  

Imagine having too much of money that u cant buy or sell without affecting the market. This is why ppl came up with this crossings. Off the market deals.

Leasing allowed 90 %
Leasing only 70 % investors start selling, some with loss
Go back to 90 %  Now what to do ?

Bank  do leasing
Banks cannot do leasing  Investors start selling, some with loss
No no they can Now what to do ?

Tile import protection
Tile protection removed Investors start selling, some with loss
future possible : Re-introduce tile protection ( reason : Dollar drain )
   Then what to do ?

Invite expatriate/locals to bring and deposit money
You Deposit money
Introduce withholding tax (in addition to deteriorating Dollar/Rupee ratio )
Possible : You deposit money elsewhere

Foreign aided projects bring foreign exchange
Stopped project  on 8th Jan
Foreign Investors lost or struck with billions + Foreign Exchange crisis for the country


No vehicle permits hereafter
No no we Pay money
[Possible: Islandwide strike]
Possible: No no who said no permits ?  we give permits

ETF + EPF
[Possible : Islandwide strike]
Possible: No no.  no merging ETF ,  EPF

Dollar @ 130
Foreigner buys 1 million ABC @ Rs.130/- . cost 1 million US$
Rupee dropped Dollar possible @ 144/-  ABC @ 130/-
Value of his investment 90,000  US$
If ABC @ 115/- Value of his investment US$  79,000.


Many more ... to come

Who will come to this Sakala Bujan Hutan land to invest ?

Chinwi wrote:Leasing allowed 90 %
Leasing only 70 % investors start selling, some with loss
Go back to 90 %  Now what to do ?

Bank  do leasing
Banks cannot do leasing  Investors start selling, some with loss
No no they can Now what to do ?

Tile import protection
Tile protection removed Investors start selling, some with loss
future possible : Re-introduce tile protection ( reason : Dollar drain )
   Then what to do ?

Invite expatriate/locals to bring and deposit money
You Deposit money
Introduce withholding tax (in addition to deteriorating Dollar/Rupee ratio )
Possible : You deposit money elsewhere

Foreign aided projects bring foreign exchange
Stopped project  on 8th Jan
Foreign Investors lost or struck with billions + Foreign Exchange crisis for the country


No vehicle permits hereafter
No no we Pay money
[Possible: Islandwide strike]
Possible: No no who said no permits ?  we give permits

ETF + EPF
[Possible : Islandwide strike]
Possible: No no.  no merging ETF ,  EPF

Dollar @ 130
Foreigner buys 1 million ABC @ Rs.130/- . cost 1 million US$
Rupee dropped Dollar possible @ 144/-  ABC @ 130/-
Value of his investment 90,000  US$
If ABC @ 115/- Value of his investment US$  79,000.


Many more ... to come

Who will come to this Sakala Bujan Hutan land to invest ?

Anyway Sakala Bujan Hutan Land is struggling to get out of huge debt of previous regime which was utilized for while elephant projects like Mattala Airport/Port etc.

It was way worst that this when previous regime was handling the economy and in my opinion the investment will start to flow as we improve the environment for them.

What I appreciate is the ones who kept utter silence when previous regime was doing all business unfriendly actions like passing appropriation law etc are actively participating now for improvement of economy.

@ranferdi this govt came into power criticizing previous govt saying they borrowed money at 4.5% dollar denominated loans. For last Nine months we have raised nearly 2.5Bn dollars at 6.5%. Why no one is criticizing them now for that borrowing rate. 

They said JIAC is there to lend them huge amount at 1.5-2.5%. What happened to that?? did JIAC lie to UNP or UNP lied to us. 
We're borrowing money for consumption purposes. Most of the borrowings are going towards BOP and interest cover. Blame should be placed on previous govt also  for borrowing money to build Mattala airport and various other loss yielding projects, but current govt tactics are worse than previous govt.

http://www.economynext.com/Sri_Lankan_shares_fall_to_over_7_1_2_mth_closing_low_on_budget_worries-3-3640-3.html

http://www.economynext.com/Sri_Lanka_higher_spending,_deficits,_credit_negative__Moody_s-3-3635-1.html

http://www.economynext.com/Sri_Lanka_central_bank_kills_Rs15bn_excess_liquidity-3-3638-1.html 

http://www.economynext.com/Sri_Lanka_keeps_rates_down_as_credit_rages,_rupee_falls-3-3596.html 


go through following post and see what sought of mess they're doing right now to our economy.

both sides have done acts that are bad for investors. remember how MR friend  businessman  used thuggery to take control of hayles group. also takeover of suga and other   business.  giving sri lanka air line to old play boy brotherinlaw. mhinlanka to friend sajinbass to plunder govt money.

rafendy wrote:Anyway Sakala Bujan Hutan Land is struggling to get out of huge debt of previous regime which was utilized for while elephant projects like Mattala Airport/Port etc.

This is a completely wrong misconception spread by වැඩ බැරි lokkas of this government.

Ports are built as long term strategic investments. Paying back terms are designed before obtaining money. No country give us money if we cannot prove paying back capability and low stressed impact on yearly budgets .

Everybody is talking about Mattala and Hamban Habour because you can see them. At least they are there to use in future date.

How about billions debt created by this වැඩ බැරි mottayas from 8th Jan to this date ? Could have built many Mattalas and Ports using money wasted by වැඩ බැරි mottayas in 2015. No one knows or talks because nobody cannot see any physical structure.

Mahinda Rakapaksa Regime reduced debt of the country by over 15% of GDP from 92 % to 71 %.
No one can hide real facts.

Misconceptions are only good to deceive people and grab power. බොරුවෙන් ලබන දෙයි පැවැත්මක් නැත​. බොරුවෙන් වංචාවෙන් ලබා ගන්නා දේ පවත්වා ගැනීම ලැබීම තරම් ලෙහෙසි නැත​.

We do not supported Big headed low quality action of Sajin vas or any other man.
The current people came because of them , taking of fair and intelligent work.
Now what are they doing ? ඉඟුරු දී මිරිස් ගත්තා වගේ ද නැත​.
මේ ඉඟුරු අල වෙනුවට නියඟලා අල කෑවා වගේය​.

Depreciating rupee is another major problem for foreign investors especially in CSE.