Japanese businessmen to invest in Sri Lanka
By Sanjeevi Jayasuriya
Asia Capital Sri Lanka Hybrid Fund funded by CD One Limited of Japan,
was launched by Asia Wealth Management Company Ltd. This would
facilitate funds up to Rs. 1.5 b for investment in tourism, construction
and energy sectors in Sri Lanka.
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Stefan Abeysinghe |
The Rs. 1.5 b will be funded by Japanese corporates and high net
worth individuals based on market surveys by Asia Wealth Management with
the initial investments commencing in mid January 2013. The primary
thrust of the investments will be in the spheres of equity both private
and listed companies along with fixed income instruments. The fund will
invest in the Colombo Stock Exchange, potential private equity projects,
treasury bills, bonds, and corporate bonds.Asia Capital PLC Director and
Group CEO Stefan Abeysinghe said the fund a first of its kind in Japan,
where CD One (Ceylon Development One) would promote the country, which
has largely been unknown as a lucrative investment destination, among
Japanese investors who are likely to view the country’s current economic
growth favourably.
With the current interest rates in Japan being close to zero percent
it makes sense to channel their investments here.
Abeysinghe said that the CD One Fund would be the first of such funds
to be launched, with the company looking at subsequent second and third
stages of funds with higher investment ceilings and a broader investment
outlook from the success of this initial venture.
V’s Capital CEO Toshiaki Tanaka said, “The Japanese public have
become aware of the potential for investment in Sri Lanka and are eager
to invest. Sri Lanka, with its attractive interest rates, is the type of
market we are looking for as it mirrors so many of the traits we look
for in business partners.”
“We are very excited about the future and look forward to working
closely with Asia Wealth Management with which we have an excellent
working relationship,” he said.
Asia Wealth Management Director Saminda Weerasinghe said, “We are
pleased to have tied up with CD One Limited, which will bring in
investments and help development. This will see a large infusion of
capital to Sri Lanka. Interest rates are very high at the moment, making
this the best time to invest into private equity projects and listed
equity due to the attractive valuations.”
“We have been working very closely with Japanese investors for almost
a year and it has been a most fruitful partnership,” he said.
Asia Wealth Management, which has been appointed the manager of this
pool of funds, is an investment advisory unit under the Asia Capital
Group.
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