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| Sunday, 10 April 2005 |
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Economy towards open capital market system by Hiran H. Senewiratne The Sri Lankan economy is in a transition stage and is moving towards an open capital market system with globalisation, said Finance Minister Dr. Sarath Amunugama. He said that Sri Lanka's foreign investment flows were very slow due to the absence of a strong institutional base to facilitate the capital market. "It is the need of the hour to strengthen the related institutes such as the Stock Exchange and Securities and Exchange Commission". He was addressing the opening ceremony of the 30th annual conference of the International Organisation of Securities Commissions (IOSCO) last week. Sri Lanka signed a Memorandum of Understanding with Hong Kong for the regulatory cooperation between both countries. The country is faced with a problem of finding efficient and qualified managers to implement the regulatory framework in the country, he said. Minister Amunugama said that Sri Lanka's stock market is one of the growing stock markets in the region, which is one of the positive factors to enhance foreign investor sentiment. Host Chairman of the IOSCO and Chairman of the Securities and Exchange Commission of Sri Lanka Dr. D.C. Jayasuriya said that capital market regulations must be benchmarked with international regulatory markets. Dr. Jayasuriya said that no regulatory model has yet emerged for the benefit of decision makers in the country. IOSCO Executive Committee and New Zealand Securities Chairperson Jane Diplock said that strong and robust regulations are beneficial for emerging markets as it will attract more foreign investors. She said that financial stability will help to foster economic growth. This would be reality if financial standards and capital market regulatory framework are placed in a proper way. The robust and strong financial regulatory framework is the need of the hour to attract foreign investors to any country, she said. |
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