Central Bank Governor Dr. Indrajit Coomaraswamy yesterday told foreign institutional investors that the Colombo stock market is an “absolute buying opportunity.”
Addressing the fourth CT CLSA Asia Frontier Forum which kicked off yesterday, the Governor said “macroeconomic fundamentals are good” though in recent months there has been net foreign outflow.
It was pointed out that the reduction in policy rates by 50 basis points recently was a boost for investment in listed equities.
He also said global investor community and financial markets have adjusted post-Easter Sunday setback.
He revealed that as of 18 April the rupee had appreciated by 4.6% and as of 7 June, the appreciation remained at 3.6%. “There is a fair degree of stability,” he added. The Central Bank had bought on a net basis $ 128 million from the market as part of building non-debt reserves.
The Governor said that since 21 April, there had been six Treasury Bill issuances and yields have come down whilst the country also saw the largest ever Bond auction worth Rs. 120 billion. In terms of Sri Lanka’s International Sovereign Bonds (ISBs) the yields have more or less remained intact, he said adding that markets are still favourable to Sri Lanka.
“Investors know that Sri Lanka will do whatever to honour its external payments,” he added.
Despite challenges and travel advisories, FII delegates from Africa, Asia and Europe will join over 20 institutional fund managers from Sri Lanka to access 19 top tier Sri Lankan corporates and six leading corporates from Bangladesh and Pakistan at the forum this year.