CB Chief unveils Sri Lanka’s first fixed income indices

NDB Capital Holdings Plc launched a family of fixed income indices for the Sri Lankan market, which would measure the performance of Government securities of selected maturities.

Recording a landmark in the history of the country’s debt markets, Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka ceremonially unveiled the four indices at a special event held at the Cinnamon Grand yesterday.

The pioneering initiative by  NDB Capital Holdings PLC together with CRISIL Limited India, is expected provide more clarity to the debt capital market participants and further propagate government securities as an attractive investment opportunity.

Among some of the dignitaries who attended the event were Ananda Silva, Assistant Governor, Central Bank of Sri Lanka, Dr. Nalaka Godhewa, Chairman of Securities Exchange Commission, Krishan Balendra, Chairman of the Colombo Stock Exchange, Koshi Mathai, Resident Representative of IMF, ManindaWickramasinghe, Country Head of Fitch Ratings Lanka Limited and Romesh Gomez – Head of Treasury of Wealth Trust Securities Ltd.

Speaking at the launch, the Governor of CBSL congratulated NDB and CRISIL Research on their initiative mentioning that Central Bank was indeed pleased to see standards been set out for the measurement and management of the government debt securities, in excess of Rs.3.5 trillion at present.  

Cabraal endorsed the use of four new indices mentioning that the transparency, accuracy and usability of the indices make it more acceptable within the market. The Governor in his speech stressed upon the importance of pioneering more of such initiatives with local and international acceptability, to measure the performance of the rapidly growing economy of Sri Lanka. He stated that the Central Bank plans to further expand the debt securities market with the introduction of long terms bonds in future.

Central Bank Chief also stated that the Government, heading for rapid growth in anticipation of a Rs. 100 billion economy in the year 2015/2016, is expecting to see a more aggressive development in the corporate debt market which is currently making a minute contribution towards the country’s GDP.