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Friday, 7 February 2014 00:53 - - {{hitsCtrl.values.hits}}
By Nisthar Cassim
Standard Chartered Bank said yesterday it was bullish on Sri Lanka and the country’s future upside, encouraging it to expand business with new solutions as well as commit more support.
Optimism as well as confidence is coming from none other than Standard Chartered Bank’s CEO for Asia as well as Group Executive Director Jaspal Singh Bindra, who made a whistle-stop yet packed tour to Sri Lanka yesterday.
He met Economic Development Minister Basil Rajapaksa, Central Bank Governor Nivard Cabraal and select corporate clients, while he also addressed the bank’s Sri Lankan team. He also visited the Colombo Port.
“We are seeing huge positives in Sri Lanka, which has been progressive post-war. I was heartened by the fact that all officials and our clients are bullish and on a reforms and expansion mode. As far as we are concerned, we are happy as well. We have grown our business with special support to the infrastructure and tourism sector along with introduction of new world class solutions,” said Baspal in an exclusive interview with the Daily FT.
“Corporates are very bullish and they are talking about expansion plans. This is further validated by our financing to some of those projects. Actually having spoken to some of our clients we realised that they have bigger plans than what we are financing. So that is very positive,” the Hong Kong-based Jaspal added, along with SCB’s Chief Executive Officer of India & South Asia Operations Sunil Kaushal and Sri Lanka CEO Anirvan Ghosh Dastidar.
SCB is the sole financial advisor to JKH’s Waterfront project, the largest private sector investment, as well as supporting the Shangri-La project. In addition SCB is also involved in SriLankan Airlines’ bond and syndication financing project.
SCB is offering sovereign rating advisory services and is working with the Government and Moody’s to improve Sri Lanka’s sovereign rating. SCB was also part of the recent successful sovereign bond exercise, which was oversubscribed by three times.
“Given SCB’s own bullishness on the future and expanded role in recent years, we will continue to increase our investment as well as solutions,” the Asian CEO said.
For SCB 2013 was the best in Sri Lanka, whilst overall South Asia was one of the better performing regions for the Group, despite challenges. SCB, which is the largest foreign bank in India, Bangladesh and Nepal, and a leader in Sri Lanka, is “cautiously optimistic” about the region’s overall prospects for 2014.
Focusing on Sri Lanka’s financial sector, the SCB Asia CEO, who is completing 30 years in banking this year, welcomed the Central Bank’s Road Map for 2014 and beyond in principle and the proposed consolidation within the sector as a step in the right direction to ensure efficiency and stability.
He commended the Central Bank for its contribution to improving macro-economic fundamentals via prudent monetary policy, including keeping inflation at single digit level for several years.
Jaspal, who has been with SCB since 1998, feels Sri Lanka has great potential in tourism, leisure and entertainment, the knowledge economy including IT/BPO, higher education, and shipping and logistics, as well as manufacturing with the ongoing policy support and private sector investment.
He noted that given the unprecedented opportunities in Sri Lanka and the future upside, the country’s challenges include any downturn in the global economy. “As of now indications are that the global economy will improve and if that momentum stays in the next few years that will make a huge positive difference to Sri Lanka.”
Jaspal acknowledged that even with a conflict Sri Lanka was resilient to have posted an average economic growth of over 5%. “In the recent post-war phase the growth has been high at over 7%. The next few years are crucial for Sri Lanka’s takeoff as capacities are being enhanced and investments are flowing in,” he added.
