Exceptional performance of stock market symbolic of post conflict economic progress

Tuesday, 14 October 2014 02:16 - - {{hitsCtrl.values.hits}}

Securities and Exchange Commission (SEC) Chairman Dr. Nalaka Godahewa last week said the exceptional performance of the Colombo stock market was symbolic of the post-conflict progress in the country. This remark he made in his welcome speech at the mega capital market conference inaugurated by President Mahinda Rajapaksa and attended by around 70 global fund managers and Sri Lanka’s private sector and state officials. Following is the full text of Dr. Godahewa’s speech: His Excellency the president, Mahinda Rajapaksa, Dr. P.B. Jayasundara, the secretary to the Treasury and the Ministry of Finance and Planning, Mr. Ajith Nivad Cabral, the Governor of Central Bank, Mr. Vajira Kulathilake, the Chairman of CSE, Commission Members of SEC, Board members of CSE, Excellency’s, distinguished public officials, esteemed guests, ladies and gentlemen; it is with great pleasure, that on behalf of the securities and exchange commission of Sri Lanka and the Colombo stock exchange, I welcome all of you to the capital market conference 2014, an event which celebrates the five years of achievements of the capital market of Sri Lanka and shares further insights about its growth prospects.

We are privileged and greatly honoured by the presence of his Excellency the president Mahinda Rajapaksa at the inauguration of this conference, which demonstrates the importance the Government is placing on the capital market as a key contributor towards the development of our economy. It is the vision of His Excellency, so well articulated in the ‘Mahinda Chinthana’ that has guided the country with an unprecedented economic progress, particularly during the years following the end of the conflict. The capital market of Sri Lanka has been a direct beneficiary of these developments. We are also happy to have with us today, both, the secretary to the treasury and the governor of Central Bank, to provide us with valuable insights, on the monetary and fiscal policy initiatives that are shaping the future of Sri Lanka. Both of them have been closely associated with us providing the much needed direction and the guidance to the capital market. The capital market conference 2014 is quite timely, coinciding with a bullish market, reflecting the overall high confidence and the positive sentiments amongst the investors. As we all know, the stock markets are considered the barometers of economic development. Usually when an economy performs well, the stock market flourishes. When an economy struggles, the stock market becomes bearish. So our key policy makers who are present with us today, should be happy to see the exceptional performance of the Colombo Stock Market, which is symbolic of the post conflict economic progress of the country. Since mid 2009, over the last five years, the all share price index of Colombo Stock market has grown more than 300% from 1,800 to 7,400 levels. The market capitalisation has appreciated by over 350% during the same period. The average daily turnover of the CSE which was Rs. 464 million in 2009 has increased to Rs. 1.2 billion by 2014. The Net Asset Value of Unit Trusts has gone up from Rs. 6.7 billion to Rs. 75.7 billion. Market capitalisation to GDP ratio, has reached 35%. During the last few years, we have taken a number of strategic initiatives, to develop our capital market inline with the Government’s vision of making Sri Lanka a commercial hub for the region. We have already completed most of these tasks and the results you see today, are reflective of our efforts. But naturally our goals are long term and the journey will continue. You will hear more about our plans during this capital market conference 2014.Today’s event is attended by the leaders of our business community and a large cross section of local and foreign stakeholders. We have many invitees here representing various public and private sector institutes. Some of our participants have come from very far. We have representatives here today, from a number of countries including USA, UK, Germany, Hong Kong, Singapore, Japan, Switzerland, Netherlands, Thailand, Malaysia, India, Pakistan, Saudi Arabia, Bahrain and Dubai. Whilst thanking each and every one of you, for your keen interest, we trust that you will find the conference productive and useful. So I take this opportunity once again to say – welcome and wish you all the best for the conference. Thank you very much!