Sri Lanka’s bid to boost value of CSE set for analysis in 2018 report

A new report by the global research and consultancy firm Oxford Business Group (OBG) on Sri Lanka’s economy will highlight efforts under way to encourage the larger, State-owned banks to list on the Colombo Stock Exchange (CSE). 

‘The Report: Sri Lanka 2018’ will track the measures put in place to facilitate the listing of major lenders, which forms part of a broader, national bid to generate capital and boost the exchange’s value.

OBG’s publication will also provide wide-ranging analysis of the other segments that are expected to play a key role in the development of Sri Lanka’s capital markets. These include companies producing building materials such as cement and commercial vehicle retailers, both of which look set to benefit from heightened construction activity, fuelled by a growing project pipeline.

In addition, the report will consider the positive impact that improved access to the EU market under the Generalised System of Preferences Plus is having on Sri Lanka’s exports, which bodes well for manufacturers and firms operating in related sectors, such as transport and logistics. 

Investment Bank, First Capital Holdings PLC has signed a third memorandum of understanding (MoU) with OBG for its forthcoming publication. Under the MoU, the firm will once again share its experience of the local capital market to produce the Capital Markets Chapter of ‘The Report: Sri Lanka 2018,’ contributing in-depth analysis of both the Equity and Government Securities markets.

First Capital Director and CEO Dilshan Wirasekara said he looked forward to working with OBG’s team once again and documenting the latest developments in the investment landscape against Sri Lanka’s rapidly-evolving economy.

“Forecasts point to a revival in private sector credit growth in the second part of 2018, which is expected to boost the performance of Sri Lanka’s banks, enabling them to benefit from robust levels of capitalisation and, in turn, better returns on equity,” he said. “With the country’s major infrastructure drive and other construction projects already helping to stimulate economic activity and attract greater inflows, the outlook for capital market expansion looks bright.”

Welcoming First Capital on board, Michael Todemann, OBG’s Editorial Manager in Sri Lanka, agreed that while private sector credit growth had eased last year, data suggested it was on track to reach a targeted 16% in 2018.

“A national drive under way to support smaller enterprises and encourage FDI is steering the country towards the next phase of its economic development, with new measures aimed at enhancing the business climate expected to provide a further boost,” he said.

“The team at First Capitaare known to be experts in their field, with an in-depth knowledge of the local and regional markets. I’m delighted that our readers will once again benefit from their analysis of market activity and potential opportunities at the CSE.”

‘The Report: Sri Lanka 2018’ will mark the culmination of more than six months of field research by a team of analysts from Oxford Business Group. It will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. 

The publication will also contain contributions from leading representatives, including President Maithripala Sirisena, Greg Hands, the UK’s Minister of State for International Trade; Changyong Rhee, Director of Asia and Pacific Department for the IMF; and Qitao Liu, Chairman, China Communications Construction Company.  It will be available in print and online.