Norway's Norges Bank fund invests US$65mn in Sri Lanka stocks
Mar 02, 2017 13:12 PM GMT+0530 | 3 Comment(s)
ECONOMYNEXT - Norges Bank Investment Management (NBIM), a sovereign wealth fund in Norway has invested 65 million US dollars in Sri Lanka stocks over the past two years, the Royal Norwegian Embassy said.
NBIM, which comes under the Norges Bank, the country's central bank, has started by investing 31 million dollars in 2016 and doubled it to 65 million dollars in 2016.
"It must also be noted that the Norwegian Central Bank is completely independent from the Norwegian Government, therefore, this fund is not used as an instrument of the Norwegian government’s foreign policy, or as a tool in foreign aid," the statement said.
"The only mandate for the Norwegian Central Bank is to safeguard and ensure further growth of the fund.
"Therefore, the investments in Sri Lanka from the Norwegian sovereign wealth fund is an indication of the investor confidence and the potential investment opportunities that are available in the market."
The Norwegian Government Pension Fund Global is a sovereign wealth fund, which manages oil and gas profits of the government, where real returns are used for budgetary spending.
It has 890 billion dollars in assets, (about 1.3 percent of world stocks) of which 16 percent is in Asia. Japan has 9 percent, China 2.7 percent and India 1 percent. About 0.6 percent is in Africa.
Europe and North America has 78 percent.
"However, this is likely to change as the Norwegian Central Bank has indicated that they will shift more of their investments toward emerging economies in the future," the statement said.