The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» CUBA FOUND A CANCER VACCINE! MORE THAN 4 THOUSAND PEOPLE HAVE ALREADY BEEN CURED BY IT!
Yesterday at 9:15 pm by කිත්සිරි ද සිල්වා

» හදාගත් දරුවෝ: DNA බැංකුවට ශ්‍රී ලංකාවේ හා නෙදර්ලන්තයේ සහාය
Yesterday at 5:33 pm by Ethical Trader

» ෆයිසර් මුස්තාපාට එරෙහිව විශ්වාස භංගයක්?
Yesterday at 2:52 pm by Yin-Yang

» 'සිම්හල ද්වීපයේ පද්මාවතිය' හා අර්බුදයට මැදිවූ පද්මාවතී එක් තැනැත්තියක් ද ?
Yesterday at 1:22 pm by Ethical Trader

» ඉන්දියාව 'බ්‍රහ්මෝස්' සාර්ථක බව කියයි
Thu Nov 23, 2017 10:26 am by Ethical Trader

» How to Calculate the Future Value of an Investment
Wed Nov 22, 2017 11:46 am by Ethical Trader

» මුගාබේ ඉවත් වීමත් සමඟ 'හරාරේ' සැණකෙළි සිරි ගනියි
Wed Nov 22, 2017 11:34 am by Ethical Trader

» විසිපස් වසරක් ගෙවුනත් ඉල්ලීම් ඉටුවී නැහැ - නිදහස් මාධ්‍ය ව්‍යාපාරය
Wed Nov 22, 2017 11:30 am by Ethical Trader

» Dividend Announcement
Wed Nov 22, 2017 11:21 am by Ethical Trader

» කොටස් වෙළෙඳපොළේ ලැයිස්තුගත කෙරෙන අලුත්ම සමාගම – LVL Energy Fund Limited
Mon Nov 20, 2017 7:42 pm by nihal123

» අගමැති රනිල් බැඳුම්කර කොමිසම හමුවේ පැවසුවේ මොනවාද?
Mon Nov 20, 2017 7:08 pm by Ethical Trader

» Obituary Notice.
Mon Nov 20, 2017 3:03 pm by කිත්සිරි ද සිල්වා

» උතුරු කොරියාවේ "සබ්මැරීන බැලිස්ටික් මිසයිල වැඩසටහනකුත්"
Mon Nov 20, 2017 11:34 am by Ethical Trader

» උතුරු කොරියාව සහ න්‍යෂ්ඨික ප්‍රහාර: "නීති විරෝධී නියෝග පිළිපදින්නේ නෑ"
Mon Nov 20, 2017 11:28 am by Ethical Trader

» 'සොල්දාදුවාගේ සිරුරේ අඟල් එකොළහක පණුවෙක්'
Sun Nov 19, 2017 1:13 pm by කිත්සිරි ද සිල්වා

» මිනිස්සු දුවනවා, අපි නැවතිලා බලන් ඉන්නවා.
Fri Nov 17, 2017 5:46 pm by Ethical Trader

» Plantation sector updates
Fri Nov 17, 2017 11:54 am by lanka

» සිම්බාබ්වේ: ජනාධිපති රොබට් මුගාබේ "අත්අඩංගුවේ"
Fri Nov 17, 2017 9:54 am by Ethical Trader

» ආයෝජනයට ශ්‍රීලංකාවට එන්න එපා.! ජාත්‍යන්තර සමාගම් නිවේදනයකට සැරසෙයි
Wed Nov 15, 2017 8:15 pm by Admin

» Soldiers 'take over Zimbabwe broadcaster'
Wed Nov 15, 2017 5:52 am by කිත්සිරි ද සිල්වා

» බටහිර ලෝකය භේද කරන බවට රුසියාවට චෝදනා
Tue Nov 14, 2017 5:26 pm by Ethical Trader

» යුද අපරාධ සහ අතුරුදහන් කිරීම්: ශ්‍රී ලංකාවේ මානව හිමිකම් වාර්තාව ජිනීවා විමසුමට
Tue Nov 14, 2017 10:56 am by Ethical Trader

» ඉරාන, ඉරාක භූමිකම්පාවෙන් 200 කට වැඩි පිරිසක් මරුට
Mon Nov 13, 2017 5:27 pm by Ethical Trader

» මැද පෙරදිග බල තරඟය දරුණු අතට හැරෙයි
Mon Nov 13, 2017 3:16 pm by guruji

» වචන නම් අපේ ඒත් තනුව ?????????
Sun Nov 12, 2017 2:28 am by Rana

» දිල්ලියේ පරිසරය රැකීමට වාහන සලාක ක්‍රමයක්
Fri Nov 10, 2017 7:05 pm by Ethical Trader

» අයවැය සහ මෝටර් රථ: නව පිළිවෙතක්
Thu Nov 09, 2017 5:42 pm by Ethical Trader

» Flying is the Safest mode of Transport
Thu Nov 09, 2017 3:12 pm by කිත්සිරි ද සිල්වා

» In the Meantime, Within Our Shores !
Thu Nov 09, 2017 10:13 am by කිත්සිරි ද සිල්වා

» වංචා දුෂණ නඩු කඩිනම් කරන්න විශේෂ මහාධිකරණයක්
Wed Nov 08, 2017 4:54 pm by කිත්සිරි ද සිල්වා

» LIOC.N0000 (Lanka IOC PLC)
Wed Nov 08, 2017 4:48 pm by Ethical Trader

» ගින්නෙන් දැවෙන අලි පැටවාගේ සේයාරුව පළමු තැනට
Wed Nov 08, 2017 4:35 pm by Ethical Trader

» 10 Things to Remember Before You Take Things Personally
Tue Nov 07, 2017 5:38 pm by Ethical Trader

» හැම තැනම නැහැ, හැම දාම නැහැ
Tue Nov 07, 2017 5:30 pm by Ethical Trader

» Beware !
Mon Nov 06, 2017 10:56 am by CK

» සාම සාධක මෙහෙයුම් නිරීක්ෂණය කරන පළමු ශ්‍රී ලාංකික හමුදා නිලධාරිනියෝ
Sun Nov 05, 2017 12:44 pm by කිත්සිරි ද සිල්වා

» How to Find Undervalued Stocks and Turn a Large Profit
Sat Nov 04, 2017 11:24 am by Ethical Trader

» ඒකාබද්ධ විපක්ෂ කණ්ඩායමෙන් ශ්‍රීලනිපට කොන්දේසි හතක්
Thu Nov 02, 2017 6:29 pm by nihal123

» Taste of Asia
Thu Nov 02, 2017 12:27 pm by Ethical Trader

» නිව් යෝර්ක් ප්‍රහාරය : අවම වශයෙන් 8 දෙනෙක් මරුට
Wed Nov 01, 2017 5:48 pm by Ethical Trader

» NTB.N0000 (NATIONS TRUST BANK PLC)
Wed Nov 01, 2017 5:43 pm by Ethical Trader

» Laughter the Best Medicine
Wed Nov 01, 2017 11:48 am by Ethical Trader

» VPEL.N0000 (VALLIBEL POWER ERATHNA PLC )
Wed Nov 01, 2017 8:15 am by yellow knife

» TJL.N0000 (Textured Jersey Lanka PLC.)
Wed Nov 01, 2017 8:07 am by yellow knife

» TPL.N0000 (TALAWAKALE PLANTATIONS )
Wed Nov 01, 2017 7:56 am by yellow knife

» BFL.N0000 (Bairaha Farms PLC)
Tue Oct 31, 2017 7:16 pm by CK

» LLUB & BFL
Tue Oct 31, 2017 11:41 am by yellow knife

» HUNA.N0000
Tue Oct 31, 2017 9:26 am by yellow knife

» Sri Lanka's got Talent
Mon Oct 30, 2017 11:31 pm by sashimaal

» Govt.electrocutes CEB
Mon Oct 30, 2017 9:53 pm by AjithR

November 2017
SunMonTueWedThuFriSat
   1234
567891011
12131415161718
19202122232425
2627282930  

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

CB Chief cracks whip!

View previous topic View next topic Go down

CB Chief cracks whip!

Post by Backstage on Sat Aug 19, 2017 7:47 pm

CB Chief cracks whip!

Wednesday, 26 July 2017 00:15

http://www.ft.lk/article/631319/CB-Chief-cracks-whip-

Central Bank Chief urges private sector to take strength from improving fundamentals than too much focus on negatives
Lists what questions businesses should ask themselves and partner the future upside
Says businesses should invest in Sri Lanka than overseas
Expresses distress over local mindset when foreigners are bullish and investing in equity and debt markets
Admits political system is noisy and untidy but things get done in “Sri Lankan” way
Says Government plans are good and execution is key



Driving home the point that foreigners are more upbeat, Central Bank Governor Dr. Indrajit Coomaraswamy yesterday urged the private sector to have a stake in the country’s future by taking advantage of the current most favourable set of circumstances ever in Sri Lanka’s history.

Noting that lots of Government plans will take 12 to 18 months or more, the Governor told the opening of the Ceylon Chamber Economic Summit yesterday that in the next 12 months it is the domestic private that has to carry the battle.

He requested the private sector not to look at all the negatives as there were plenty but to ask themselves some rational questions. “Ask yourself: Are the macroeconomic fundamentals improving? Is macroeconomic policymaking being made in a more sensible and stable way? Is the investment climate improving and going in the right direction? Are the transactions cost coming down?” Dr. Coomaraswamy asserted at the tail-end of his keynote speech.

“Are we going in the right direction? If we are, I would urge you to put your money here rather than Bangladesh, Fuji or Ethiopia. I must say it sometimes upsets me a little bit I see foreigners investing in our stock market and Government securities. We floated an international sovereign bond and it was oversubscribed by seven times. Yet the domestic private sector still has its wallets tightly buttoned up. This is something I don’t understand very much,” the Governor said.

“We have a political system that is noisy and untidy. VAT gets introduced and then withdrawn after a Court case, there is squabbling within the Government but finally VAT gets passed not once but twice. The same thing will happen to the Hambantota agreement. Before it was signed people were on the streets and there was squabbling but it finally got signed. That is our way of doing things,” said the CB Chief, evoking laughter from the audience.

He noted that this very untidy, and in many ways dysfunctional, political system had given the people freedom for 70 years and good social development. “We need to see through this and see where the country is heading and whether you feel you want to have a stake. I would urge you, the time to invest is now,” the Governor told participants of the Economic Summit.

Earlier on in his presentation, Dr. Coomaraswamy made a compelling case to stress that sans the war, currently Sri Lanka enjoys the most favourable set of circumstances in over five decades whilst being part of Asia which is the world’s most dynamic region today. He said that the Government is making positive changes in its approach to policymaking including macroeconomic management, monetary, trade and investments.

On the macroeconomic side, the country is moving firmly towards lower fiscal deficit, improvement in public finance, prioritisation of public expenditure and investments, reforms in State-Owned Enterprises, enhancing tax revenue, and achieving surplus in current and primary accounts.

With regard to monetary issues, the CB Chief said the focus is towards flexible inflation targeting and a forward-looking and proactive monetary policy. In terms of the exchange rate, the Governor said there is no Central Bank interference or effort to have an overvalued exchange rate that cannot be sustained and will have serious consequences. The Government is approaching trade policy and investment promotion aspect with a series of task forces focusing on the country’s ranking within the eight pillars of the World Bank/IFC Ease of Doing Business Index in addition to a more targeted effort to boost FDI. Automation of Customs is another initiative.

Dr. Coomaraswamy also spoke on the expansion of the country’s economic cooperation with India, China, Japan, Korea and Singapore among others. This strategy he said is the “jewel in the crown” as Sri Lanka will be the only country to enjoy preferential access to India, China and the EU via the GSP+ scheme.

Incorporating FTAs with Pakistan and those proposed with Bangladesh and Singapore, the potential market size will be three billion. “We need to leverage this preferential access to attract greater degree of FDIs. This will be Sri Lanka’s differentiator and unique selling proposition,” the Governor emphasised.

He said that there was a misconception that Sri Lanka could not succeed in manufacturing and such thinking could lock out lots of opportunities. On the contrary the Governor said Sri Lanka can focus on value-added manufacturing with skilled labour.

“We need to maximise the excellent relations with capital-surplus Asian countries to attract FDIs into manufacturing in Sri Lanka. Given our strategic location and preferential access, such manufacturing ventures can serve regional and other Asian markets,” he added.

To safeguard domestic sector interests, the Anti-Dumping Bill will be presented in Parliament whilst in partnership with the World Bank, ITC and European Union, a trade adjustment package to help the vulnerable domestic sector be competitive as well as re-train workers is underway.

A scheme to develop SMEs with training, inputs and access to finance and marketing as well as modernisation of agriculture are some of the other initiatives. The importance of the country improving innovation, productivity and competitiveness was also stressed by the Governor, who said there must be laser-like focus and perhaps be in the DNA of the people at all levels.

“We need to respond to some of the paradigm changes happening in the country such as an aging population, when there are aspirations for higher growth, wealth and growth creation and the shift from a low income to lower middle income country status,” the CB Chief emphasised, adding: “Government plans are good and execution is key.”


Ranel welcomes CB chief’s comments; says wants domestic investors to put their money where their mouths are!

Business leader Ranel T. Wijesinha, who attended the opening day of the Ceylon Chamber Economic Summit, said Central Bank Governor Dr. Indrajit Coomaraswamy spoke very well.

“His positive statement, delivered with clarity and characteristic humility and simplicity backed by learned economic thinking rather than political hot air, will boost even further the stock market which as of Friday, 21 July 2017 just recorded a cumulative net foreign investor inflow of Rs. 24 billion. Let the domestic investor now put its money where its mouth is. When a Governor who is respected, who is also an economist, feels secure about the economy then the nation must get moving. When opportunity knocks on the front door, domestic investors must not go to the backdoor looking for further handouts and opportunities unless they are sectoral or national needs rather than individual corporate or personal needs,” said Wijesinha, who is also a Commissioner of the Securities and Exchange Commission and the Director of Bank of Ceylon.

Policy making based on real time feedback and data: Principal Economic Adviser to Indian Govt. Sanjeev Sanyal

02Principal Economic Adviser to the Indian Government Sanjeev Sanyal yesterday told Sri Lankan business leaders that continuous modification of policy in tandem with external and internal challenges was key to policy and economic success.

Speaking at the Ceylon Chamber Economic Summit, he stressed on the need for changing the conceptual framework with which our economies need to be managed and reformed. There is also need to think very seriously about policy making based on real time feedback and data.

Using the analogy of a person with a dog and Frisbee, he said economies need to be flexible and adjust according to the prevalent situation and make the best decision. “For such a strategy you need continuous feedback, tinkering based on quick time response,” said Sanyal drawing lessons from India’s mammoth reform of introducing GST earlier this month.

“When India introduced GST it was done with admission that nothing is perfect and have in place a quick response team to fix issues. One needs to keep adjusting till it works,” he added. He added that policy makers need to be prepared for creative destruction and real time feedback. “Continuous adoption is key, especially when introducing something new and radical,” he added.

He also shared India’s experience in dealing with bankruptcy. He said that in the past a business failure was perceived as a moral failure whereas as a progressive country one needs to be for creative destruction. “Every economy based on entrepreneurial system must be prepared for exits,” Sanyal stressed.

He also said that an economy is an evolving eco system that needs to weather shocks and challenges and not as an engine as some used to deal with it. He also shared some key insights to how Singapore evolved to be a successful nation and what lessons developing countries such as India and Sri Lanka can learn.
avatar
Backstage
Top contributor
Top contributor

Posts : 3191
Join date : 2014-02-24

Back to top Go down

Re: CB Chief cracks whip!

Post by Ethical Trader on Mon Aug 21, 2017 11:04 am

Thanks Back. Its a revealing speech. An eye opener for the local investors who are currently bearish on the stock market. Foreigners are slowly buying.
avatar
Ethical Trader
Top contributor
Top contributor

Posts : 2957
Join date : 2014-02-28

Back to top Go down

View previous topic View next topic Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum