• Unity Government’s efforts to transform Sri Lanka with reconciliation and reforms underscored at packed CSE forum in Melbourne 

• Attractive opportunities in capital market as well as real estate industry showcased to woo investments from Lankans living in Australia 

By Nisthar Cassim in Melbourne

Sri Lankans living in Melbourne were yesterday urged to give back by investing in their motherland’s future, taking strength from the new transformation being initiated by the Unity Government through good governance and better economic policies. 

The emphatic message was conveyed at the well-attended Invest Sri Lanka forum in Melbourne, Victoria which is home to the largest population of people of Lankan origin living in Australia. The event was organised by the Colombo Stock Exchange in partnership with several other stakeholders.

“It is time to invest in Sri Lanka. You decided to leave Sri Lanka and come to a very efficient and prosperous economy such as Australia. But your brothers and sisters are in Sri Lanka and they need help,” emphasised State Minister for National Policies and Economic Affairs Niroshan Perera at the Melbourne forum.

“After a 30-year war all Lankans living abroad can do best is to help their motherland by investing back in improving fundamentals and long-term consideration,” he pointed out at the forum, held at the Novotel Melbourne Glen Waverley, drawing over 150 participants.

“We need to move forward positively. Sri Lanka has been resilient and we are building a new Sri Lanka with greater unity and equal opportunities for all. This is the transformation that the Unity Government led by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe is leading the country to,” State Minister Perera emphasised.

“Your ideas and your support are important to our country as we drive the future of our country forward,” he told the packed Melbourne forum, which served to complete the CSE’s first-ever investment promotion exercise in 12 years in Australia, which includes an engagement in Sydney on Monday.

State Minister for National Policies and Economic Affairs Niroshan Perera stresses a point during the panel discussion of the Invest Sri Lanka forum in Melbourne yesterday. Others from left are Fitch Ratings Lanka MD and CEO Maninda Wickramasinghe, SEC Director General Vajira Wijegunerwardane, Sri Lanka High Commissioner in Australia S. Skandakumar, CSE Chairman Vajira Kulatilaka and Central Bank Director of Economic Research Dr. (Mrs.) Yuthika Indraratne - Pic by Nisthar Cassim

State Minister Perera also urged Lankans living in Australia to recognise the enormous promise and potential of the emerging new Sri Lanka, built on the foundation of the Government’s new agenda of administrative and economic reform. He gave assurances over the Government’s pledge to facilitate investments and stimulate the establishment of transparent and well-governed institutions.

He said the international community’s response has been positive due to the progressive and pragmatic policies of the Unity Government in pursuing a balanced foreign policy approach. 

“All the countries are coming to Sri Lanka’s support and this is a major achievement of the Unity Government. We have a bright future since all countries will work with us to make Sri Lanka prosperous and we should see a united country going forward,” Perera reiterated.

“Post-election, the two major parties coming together to form the Unity Government allows for policy stability as opposed to being divided. I am not saying things are 100% fine but for the most part we have come up with the best policy for Sri Lanka to go forward,” emphasised State Minister Perera.

He also spoke about FTAs with China and Singapore while enhancing cooperation with India as well as mega Chinese investments and joint ventures under PPP including $ 1 billion for the Hambantota port as well as over $ 1 billion in building the Colombo Port City/Financial City.

“We need to be part of the global value chain and if you are not you can’t bring wealth to Sri Lanka. We will also support domestic manufacturers,” assured Perera.

Sri Lanka’s High Commissioner in Canberra Australia S. Skandakumar also echoed the sentiments expressed by the State Minister. 

While acknowledging the major contribution by Lankans to the development of the Australian economy as highlighted by the Canberra Government, the High Commissioner called upon Sri Lankans to consider attractive investment and employment generating opportunities back home where a sincere effort is being made to foster reconciliation and democracy. 

Skandakumar also noted that the investment promotion events were timely since Sri Lanka and Australia were celebrating 70 years of strong diplomatic ties.

The conferences in Australia were held in partnership with several organisations and individuals including the Securities and Exchange Commission (SEC), the Sri Lanka High Commission in Canberra, Australia, Consul General in Sydney Lal Wickremetunga and Melbourne Prasanna Gamage, the Sri Lanka and Australia Chamber of Commerce and the Aus-Lanka Business Council.

Existing foreign investors such as the CHEC Port City Colombo Ltd., Shangri-La, One Galle Face Colombo, and Indoocean Developers Ltd/Altair supported the initiative while several stockbrokers and Sri Lankan companies attended the events as well.

CSE Chairman Vajira Kulatilaka, SEC Director General Vajira Wijegunerwardane, Central Bank Director of Economic Research Dr. (Mrs.) Yuthika Indraratne and Fitch Ratings Lanka MD and CEO Maninda Wickramasinghe also addressed the Melbourne forum.

Additionally, representatives from the Colombo Port City (Platinum Sponsor) One Galle Face by Shangri-La Hotels & Resorts (Platinum Sponsor) and the luxury apartment development by Altair (Corporate Sponsor) made presentations to trigger foreign investments in the booming and attractive real estate and property industry in Sri Lanka.

The main presentations were followed by a panel discussion moderated by CSE CEO Rajeeva Bandaranaike and several Lankan Melbourners sought further clarifications from the officials about opportunities and prospects.

The fresh push to woo international investor interest will shift to New Zealand on Saturday with a forum at the Fickling Convention Centre, Auckland in association with the Sri Lankan New Zealand Business Council.

Shares fall but Rs. 194 m in foreign inflows 

Shares fell for a second straight session yesterday to a more than one-year closing ahead of a crucial policy rate review but foreign inflows continued strong with Rs. 194 million, raising net inflow to Rs. 3.26 billion in equities. 

The Bourse remained lacklustre as expectations of an interest rate hike continued to drag down the market ahead of the Central Bank’s monetary policy review, Reuters reported.

The Colombo stock index closed down 0.3% at 5,979.85, its lowest close since 15 March 2016. The index breached a key psychological barrier of 6,000 in the previous session.

“There are no buyers as most of the local investors are on the sidelines awaiting the outcome of the policy review,” said Dimantha Mathew, head of research, First Capital Equities Ltd.

Sri Lanka’s Central Bank could raise its key policy rates in the coming months if it skips a chance to tighten at its second monetary policy review of the year on Friday, a Reuters poll showed, two weeks after the International Monetary Fund called for further tightening.

Analysts said investors expected a rate hike.

Turnover stood at Rs. 616.4 million ($ 4.1 million), less than this year’s daily average of Rs. 671 million.

The index has lost 2.1% since 7 March, when the IMF called for monetary policy tightening if credit growth or inflation do not abate.

The Bourse dipped further into oversold territory on Thursday, with the 14-day relative strength index at 24.614 points versus Wednesday’s 26.758, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.

Foreign investors net bought shares worth Rs. 194 million, raising the year-to-date net foreign inflow to Rs. 3.26 billion in equities.

The Treasury bill rates have risen between 33 to 77 basis points since 28 July, when the Central Bank last raised the key interest rates.

Shares in Asian Hotel Properties Plc fell 2.9%, while Lanka ORIX Leasing Company Plc fell 0.8% and Sri Lanka Telecom Plc 0.9%.