Contemporary art: An emerging investment portfolio

From left: Shanika Perera, Harshi Hewage and Artspacesrilanka.com founder Saskia Fernando at the press briefing 

By Shehana Dain

Art, a widely unknown contender to the investment portfolios in the local market, is slowly but steadily picking up pace. The rapidly growing interest and curiosity of contemporary art among the region has led to the launch of the first-ever online gallery in Sri Lanka, Artspacesrilanka.com.

Market paradigms has shifted dramatically over the last several decades, as newly-created wealth in emerging markets such as China, Russia and the Middle East has increased the number of participants in the art trade, giving greater resiliency.

The global art market continues to thrive with sales for 2014 rising 7% whichis over the previous year to $54.1 billion worldwide, according to an annual report published from the European Fine Art Foundation (TEFAF). The report said the sum is the highest-ever recorded amount for the global art market.

The TEFAF report highlightedthat online art sales continued to gain prominence by conservatively reaching $3.6 billion, accounting for an estimated 6% of global art and antiques sales by value.

The three biggest markets by value are the US accounting for 39% and followed by China and UK each accounting for 22% of the market. 

On par with market trends it’s evident that Colombo’s art scene is awakening, as a cluster of art galleries have popped up for art enthusiasts to wander into to invest, more accurately invest in passion. 

However, it should be stressed that art no longer revolves solely on passion. Very recent findings of economists have proven that art is a potential alternativeinvestmentportfolio which can yield long term returns.

Surveys have also shown on average 10% of fine art and paintings are acquired purely as financial investment while collectors with non-monetary intention shouldn’t be ignored as they greatly nurture the cultural elements of a country.

Out of the bunch of art galleries in Colombo,Saskia Fernando Gallery is primarily devoted to showcasing the talent of emerging contemporary artists in the country covering talent from as far as Jaffna. The gallery has been the driving force of the first-ever curated online contemporary art portal. With growing interest in the Sri Lankan art sceneand the exposure of art through online platforms,it’s a timely move.

Moreover, global trends have shown that investment on art has been the champion prospectduring grey time periods in the stock and bond markets where interest rates would also not be impressive. This is primarily due to the investors’ interest to seek more diversification to gain greater returns. The growth yoy in the art market is predominantly an incentive for investors.

However, the murky nature of the Sri Lankan art market is asignificant force which drives budding investments away from the market. This could be one of the many reasons the contemporary art market in Sri Lanka is not on par with the global standards while its neighbour India is showing a more promising growth as its art market has grown to a promising $100 million with auction houses like Christie’sentering the Indian market.

It’s therefore vital to showcase more transparency in the market to aspire more buyers and an online portal is a viable solutionat present. It should also be noted that the online gallery launched recently would be a great inspiration for future online portals. The TEFAF art market report also stressed that the price point of online art galleries are significantly lower than auctions and art fair sales which would adopt well to the Sri Lankan market.

Artspacesrilanka.com presents work of varying price ranges, from $ 50 upwards. Delivery in Colombo limits is free and delivery outstation or shipping overseas can be quoted within three working days. Artspacesrilanka.com makes the process of purchasing art for private collections and corporate projects easier. The website is more inclusive than most galleries, with specifications mainly pertaining to portfolio and existing series of works by any artist, however all artists placed on the website are carefully selected by the Art Space Sri Lanka team.

Artspacesrilanka.com founder Saskia Fernando speaking at the launch highlighted: “There are more artists working in the local scene than our galleries are able to accommodate. In addition most of our collectors have become familiar with the quality of art and thereby trust that purchasing art through us online is safe and practical, particularly for those with busy schedules.”

“The great thing about this new project is it allows us to work with more artists and connect them with our database of collectors. A gallery is always limited by its physical space, however Art Space Sri Lanka takes us outside these walls and gives us the opportunity to present the complete diversity that exists in the Sri Lanka art industry while maintaining sensitivity to the more stringent curating of work at Saskia Fernando Gallery,” Fernando added.

Art Space Sri Lanka is a clear example of Sri Lanka’s ability to move away from mainstream investment manifestos. It’s an excellent stage to communicate the talent of Sri Lankan artists to the world as it’s impossible to only go ahead with conventional gallery displays to grab global attention.