Much potential in debt and capital markets

By Sajeevi Jayasuriya

The country’s debt market and capital market is less than one percent of the GDP and there are more opportunities to grow. Last year's budget concessions to develop the capital market was a positive development. Policies will improve the debt market.

This will be a step towards becoming the miracle of Asia, RAM Ratings (Lanka) Ltd, Chief Executive Officer, Adrian Perera told Sunday Observer Business. As corporate debts are long-term investments it is important to ensure economic growth. The steps taken to develop the debt market are effective. It is long-term and is in the right direction. Sri Lanka is a good market and future prospects are bright with consistent policy initiatives, he said. Ram Ratings has been bullish about the Sri Lankan market since 2009.

There are large debentures in the pipeline and we will rate them for the benefit of investors. Rating is a difficult task as it is based on historical data and the training we provide to our researchers stands good in this regard, he said.

“This is a growing market and the rating agency has a large share in major fields including 75 percent in finance and insurance and several banks are rated by RAM.

The company accounts for 50 percent of the ratings done in the corporate sector,” a spokesman for the company said.

The company is growing and will introduce new products, brand names and research products to the market shortly.

“The market is changing rapidly and we conduct training programs for analysts to make them competent. We are looking at more changes to suit the Sri Lankan market as the landscape of the economy is changing due to development initiatives taken by the Government,” he said.