Sri Lanka can list SOEs to get capital, boost growth, tackle debt: Mark Mobius
ECONOMYNEXT – Sri Lanka can list state enterprises to attract capital, boost growth and improve liquidity in markets, and also tackle the problem of rising government debt, Mark Mobius, a top emerging markets investor said.
A country that is faced with debt has to look for new ways to raise capital and reduce spending, he said.
“There is no shortage of money, there are lots of money,” Mobius said at a forum in Colombo organized by Cinnamon life, a real estate project promoted by John Keells Holding said.
“There is a shortage of reform and the ability to attract the money.”
He said listing state enterprises will expose their balance sheets and open them for scrutiny.
Around the world, funds were moving to passive investments from active, but it required large markets which were liquid.
By listing state enterprises Sri Lanka can attract large Exchange Traded Funds, (ETFs) he said.
He said Sri Lanka Insurance, state banks and airport were good candidates.