Capital market woos investments from Lankan Diaspora in Dubai

As part of encouraging more Sri Lankan expatriates to benefit from the post-war revival in the country, the capital market industry on Saturday kicked off a promotional drive in Dubai widely considered as the hub of the Middle East.

 Officials of the Securities and Exchange Commission, Colombo Stock Exchange, Colombo Stock Brokers Association and the Unit Trust Association addressed nearly 100 Sri Lankan professionals working in UAE as part of an investment promotions event specifically targeting the Sri Lankan Diaspora. The event was held on 1 June 2013 at the Le Meridien Hotel in Dubai.

While delivering the keynote address, SEC Chairman Dr. Nalaka Godahewa pointed out that that Sri Lankan Diaspora contributes US$ 6 billion through foreign earnings of the country, which amounts to 10% of the GDP. Foreign expatriate remittances have grown 16.8% in 2012 while the migrant workers in the professional category have grown by 33%.

Though remittances by Sri Lankans working abroad contribute almost 30% of all external current receipts, they are not yet given the due recognition as a potential investor group for the country. The Diaspora investor forum has two objectives according to the SEC chairman – firstly, to guide the professionals working abroad on investment opportunities in securities instruments such as equities and bonds and secondly, to provide sufficient information about economic growth prospects and investment opportunities in Sri Lanka so that the Diaspora can act as investment ambassadors for the country.

CSE Chairman Krishan Balendra provided an overview of the Colombo Stock Exchange while Priyantha Fernando, Commission Member of the SEC, made a presentation on investment opportunities available in the bond market. They were followed by two presentations from the Colombo Stock Brokers Association and Unit Trust Association respectively. The welcome address was delivered by M.M. Abdul Raheem, Counsel General of Sri Lanka in Dubai and Northern Emirates.

Most of the professionals who attended the event mentioned that they have been working abroad for more than 15 years and are in fairly high income categories. They commended the fresh effort by capital markets in post-war era in explaining the investment opportunities available to them in Sri Lanka.

Most of them invest in foreign currency markets which do not give the type of returns available in the Sri Lankan capital market. The members of the Colombo Stock Brokers Association and the Unit Trust Association got the opportunity to establish contacts with the Diaspora members and many received invitations to come and address subsequent gatherings of various business associations of Diaspora members in the Middle East.

Today (3), Dr. Sarath Amunugama, Senior Minister of Monetary Corporation and Deputy Minister of Finance will deliver the keynote address at an investment forum specifically targeting UAE-based foreign fund managers. This event will be held at the Ritz Carlton Hotel in Dubai and is the second of the four road shows planned by the Colombo Stock Exchange for this year as part of the SEC’s 10-point action plan.