Lack of consistent policies block capital market growth

Chairman, Colombo Stock Exchange (CSE), Vajira Kulatilaka said that for the economy to progress there should be national and consistent policies that will help attract foreign investors and develop infrastructure.

He said the absence of transparent and consistent policies in the country was a huge drawback to developing the capital market as foreign investors look for stability in policies for long-term investments. “We hope the new Government will be focused on consistency and create a conducive environment for capital market growth,” Kulatilaka said.

He said maintaining discipline, law and order and a level playing field in the country was vital to drive business growth. “We must emulate the example of Singapore which treats all equally. A level playing field in all sectors will encourage more investors to the country.

The policy makers should have a holistic view of taking the country forward in the next five years. It should have a clear plan on driving capital market growth.

Former President, Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), Nawaz Rajabdeen said the new government should restructure and rehabilitate the small and medium industries by providing advanced technology, new machinery and a special fund for research and development to support SMEs.

It should appoint educated and experienced private sector personnel to public institutions without nominating defeated candidates and those having criminal records. A unit should be set up to showcase local products in international markets with the support of the Export Development Board which will increase quality, productivity and encourage local industries, he said.

This election has proved beyond doubt that no Sri Lankan will endorse communal politics. All communities should work together in developing the economy, Rajabdeen said.