SL has potential to make its mark in global supply chain: Redwheel

Friday, 28 March 2025 00:34 - - {{hitsCtrl.values.hits}}

Redwheel Emerging and Frontier Markets Team Co-Head and Portfolio Manager James Johnstone

Redwheel Emerging and Frontier Markets Team Co-Head and Portfolio Manager James Johnstone yesterday declared that Sri Lanka has the potential to make its mark in the global supply chain for manufactured goods with foreign joint ventures given its strategic geographical location.

He made this observation during his presentation at the Colombo Stock Exchange (CSE)-Securities and Exchange Commission (SEC) organised ‘Invest Sri Lanka’ Investor Forum in Colombo, drawing over 100 foreign investors and fund managers.

Established in 2000, Redwheel is a global investment manager specialising in providing strategies that enable clients to invest in developed and emerging market equities, convertible bonds, and income solutions that help them meet their long-term financial needs.

He also said Sri Lanka has an opportunity to do well in services and commodities as per the “Three well-trodden paths to growth” of Redhweel’s Frontier Markets Equity Strategy.

At the forum, he also listed several companies which are attractive for investments under this strategy.

He commended the successful macro stabilisation in Sri Lanka. He noted that tourism and remittances are expected to be promising sectors for growth for Sri Lanka.

Among challenges listed by Johnstone were Sri Lanka’s low 15% market capitalisation as a percentage of GDP in comparison to its peers, such as 59% of Vietnam and 40% of Indonesia.

The importance of Sri Lanka ensuring stable currency was stressed by him in his presentation titled “Frontier and Next Generation Emerging Markets Strategies Global Outlook on Equities and Sri Lankan Capital Market.”