SMB-Kenanga to promote foreign investment in key sectors

A new Sri Lanka - Malaysia joint venture financial services powerhouse launched in Colombo last week, will actively promote foreign investment in key sectors and bring into the country the expertise to offer innovative capital market products and investment banking services.

The new company, SMB-Kenanga Investment Corporation Ltd., co-owned by Sri Lanka's Seylan Merchant Bank (SMB) and K & N Kenanga Holdings Berhad of Malaysia, is well positioned to tap into the latter's network spanning Malaysia, Singapore, Indonesia, Tailand, the Philippines, the UAE and Saudi Arabia to promote investments into Sri Lanka, the new venture's promoters told a launch event in Colombo.

Identifying a key strength as its 'reach' to a wider network of foreign investors, the company said it also has the ability to introduce and advise on new financial products and structures to Sri Lanka with a team of experts comprising Sri Lankan and Malaysian investment bankers. Malaysia is currently the largest investor in Sri Lanka.

Ceylinco Consolidated Chairman Dr. Lalith Kotelawala described the advent of the new company as a potential milestone in the evolution and growth of Sri Lanka's capital market, and a momentous event in the history of the Ceylinco Group, Sri Lanka's leading financial services conglomerate.

Dr. Kotelawala said: "The specialised technical expertise to introduce and develop new capital market instruments and access to foreign funds for large merchant banking assignments through the Malaysian counterpart would give SMB-Kenanga a competitive edge in the local capital market and bring about numerous benefits to the country by facilitating several large scale investment projects.