SEC Investment Day draws over 7,500: Basil says capital market must be vibrant, secure

Monday, 8 July 2013 01:08 - - {{hitsCtrl.values.hits}}

The SEC-organised Investment Day on Saturday drew over 7,500 people as Economic Development Minister Basil Rajapaksa emphasised a vibrant and secure capital market was crucial for the country’s socio-economic prosperity. Organised on a larger scale this year, the full day event comprising seminars and booths providing advice and various products and services, the Investment Day at the Sri Lanka Exhibition and Convention Centre was a success, a spokesman for the Securities and Exchange Commission said.

At the inauguration, the presence of Chief Guest Economic Development Minister Basil Rajapaksa in spite of having only flown back a few hours earlier from his important visit to New Delhi, India confirmed the Government’s emphasis on capital market. In his speech, Minister Rajapaksa said a secure and vibrant capital market is important in the country’s forward march. “The Government is committed to robust capital market development and make it attractive and safe for people to invest and benefit. A healthy capital market will help reduce income disparity,” he said. In that context he emphasised that protection of small investor plays a crucial role. “We have seen how other countries have suffered due to the disillusionment of small investors. Therefore as capital market expands the security aspect is also important,” Minister Rajapaksa added. He noted the Government of President Mahinda Rajapaksa has taken widespread development to rural areas as opposed to it been restricted to the Western Province as in the past. He said thanks to the revival in the agriculture sector rural people are having higher income. However lamented that during a visit to Dambulla last week, he found out that the liquor section in a supermarket in the area was reporting the highest sales. “It is important that rural people must save and invest their extra income for the future prosperity. An attractive capital market can be a consideration for the rural people,” pointed Minister Rajapaksa. Given the importance of creating the right awareness, the Minister commended the SEC for organising the Investment Day for the benefit of the ordinary public. A similar sentiment was shared by guest of honour Central Bank Governor Nivard Cabraal. He said the SEC initiative was commendable as it endeavours to expand the local investor base which in turn will be an encouragement to lure foreign investors. Cabraal also briefly highlighted some of the significant economic achievements in recent history to drive home the point that investing in capital market and its attractiveness are characterised by sound macroeconomic fundamentals. SEC Chairman Dr. Nalaka Godahewa said due to a series of policy measures initiative the Colombo stock market has improved by 30% during the past year. He attributed the success so far to the collective effort by all stakeholders whose contribution was commended as well by the SEC Chief. “Support from the Ministry of Finance via the 2013 Budget and the Central Bank has been a big boost for the rebound in the capital market. All stakeholders have rallied around the SEC’s 10 point plan to further develop the capital market in the medium term,” Godahewa said adding that both listed equity and debt market offers sound investment opportunities for the public. The SEC Chief also said that the target by 2016 is to develop the equity market’s capitalisation to $ 50 billion from the current level of $ 20 billion.