Saturday Nov 23, 2024
Saturday Nov 23, 2024
Wednesday, 22 March 2017 00:01 - - {{hitsCtrl.values.hits}}
It is my honour and privilege to address the Invest Sri Lanka forum on behalf of the Ministry of National Policies and Economic Affairs of Sri Lanka.
The Ministry, under the leadership of Hon. Prime Minister Ranil Wickremesinghe, is responsible for formulating policy and guidelines for economic and social development in Sri Lanka; in particular, formulating monetary policy and guiding capital markets.
This forum comes in the backdrop of celebrating 70 years of diplomatic ties between our two nations. I express our appreciation to the Australian Mission in Sri Lanka and the Sri Lankan Mission here in Australia, for the valuable contributions made over the years to make such a landmark a possibility.
Australia and Sri Lanka have long shared strong historical ties, common values and interests – which have resulted in many forms of economic and social cooperation over the years.
Sri Lanka is set to enter new territory as we are poised for a renewed drive of growth and progress. A defining national election in 2015 resulted in the two main political parties forming a unity government in order to improve the political climate and to provide the stability that is required to transform the country into a vibrant and prosperous nation.
Those of you who have been following Sri Lanka, I’m sure, are aware of the sustained progress the country has made in recent times as a result of our commitment to economic and social reform.
The present Government envisions a globally competitive, export-led economy driven by revolutionary thinking and bold policies. We expect to drive the nation towards achieving middle income status, while maintaining a strong focus on sustainable economic growth and good governance.
The Sri Lankan economy has maintained sustained growth amid global economic turbulence, proving yet again the unique nature of our economy and the importance of strong domestic fundamentals. It is with that in mind that the present Government has implemented a number of business friendly policies with a view to strengthening our local economic and business environment.
Ineffective regulation for the longest time had stifled the economic and business climate and employment growth. We are well in the process of replacing such regulations.
The process of registering a business, obtaining Government permits for specific forms of work, obtaining credit and simplifying the investment approval process are examples of areas that we are presently focusing on.
A new set of investment incentives based on capital allowances and a low tax regime have been introduced through the budget for 2017. Such initiatives will broaden the scope of Sri Lankan businesses and will have a significant impact on investment sourced through domestic and international channels. The targeted outcome is to bring Sri Lanka within the top 70 nations of the Ease of Doing Business Index by 2020.
The importance of Sri Lanka as an Indian Ocean hub in the realm of global logistics and commercial activities has been widely acknowledged. I am pleased to say that an increasing number of businesses and investors are once again looking to Sri Lanka as an investment destination.
The Government has embarked on several infrastructure projects that are set to drive the country forward. Creating a Megapolis Authority to develop the Western Megapolis, an urban area of over 8 ½ million people, and the Colombo Financial City project, which you already heard about today, will play a vital role in strengthening Sri Lanka’s links with the global value chain and trading partners.
The capital markets in Sri Lanka, which is under the purview of the Ministry of National Policies and Economic Affairs, focuses on maintaining its integrity and quality, by setting a policy framework that would lead to the operation of an open, secure and transparent marketplace.
Through the 2017 Budget, the Government introduced a number of initiatives that, we believe, are likely to develop the capital markets in the coming years. The Colombo Stock Exchange (CSE) has been encouraged to introduce new products such as real estate investment trusts and multi-currency denominated securities. New boards, catering to specific markets, are set to improve the scope of the exchange. The multi-currency board that is to be introduced will be of particular interest to all of you present here today.
The largest enterprises, operating in Sri Lanka, in terms of reach, brand value and pure size are operated by the Sri Lankan Government. The involvement of state enterprises in Sri Lankan capital markets over the years has had a transformational effect, both in the perspective of the CSE and for the respective enterprise.
Moving forward, we intend to introduce a number of non-core businesses of the Government to the capital markets. These listings are likely to have a positive effect in terms of sparking market interest among investors and in the matter of improving market liquidity. We also intend to demutualise the Colombo Stock Exchange – a move that would serve in the best interest of investors and improve governance and accountability of the exchange.
A key priority of the present Government headed by His Excellency President Maithripala Sirisena and Honourable Prime Minister Ranil Wickremesinghe is to regain the confidence of the international community. We are pleased to see a number of positive developments in this regard.
A move by the European Union to remove significant import duties on Sri Lankan products and to restore GSP Plus trade access to the EU export market is a strong endorsement in that sense. We are also seeing a healthy growth in tourist arrivals as our image as a safe and a friendly tourist destination is growing rapidly.
Many Sri Lankans who left our motherland during the conflict are actively looking to improve their association with Sri Lanka. The present construction boom driven by Sri Lankans living abroad is an example of such interest and involvement. Such progress is exactly why forums of this nature are of importance, because they play an important role in assisting the Government to reach out to our large and diverse Sri Lankan community overseas. Your ideas and your support are important to our country as we drive the future of our country forward.
Ladies and gentlemen, I urge you 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 reforms and ease of doing business. On behalf of the Sri Lankan Government I would like to pledge our continued commitment to facilitating investments and stimulating the establishment of transparent and well-governed institutions.
I wish to thank the CSE, the Securities and Exchange Commission and all the partners and sponsors involved in organising what has been an insightful event. I am humbled and encouraged by support and interest for the forum among both Australian investors and members of the overseas Sri Lankan community present here today.
