Sri Lanka to draw more American investors with New York forum
ECONOMYNEXT – Sri Lanka is to hold an investor forum in New York on 16 October to try to attract more institutional investors in the United States, who are ranked the top investors in the Colombo bourse this year.
The “Invest Sri Lanka Investor Forum” is organised by the Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC) in association with CSE member firms and leading listed companies, a statement said.
The Invest SL Forum hosted in New York in 2014 drew over 200 investment professionals and helped that year to record the highest annual purchases in the Sri Lankan stock market from the US.
There will be a series of pre-scheduled one-on-one or group discussions between fund managers and Sri Lankan listed companies on 16th and 17th October 2017.
“The decision to host the Invest SL event in New York comes on the back of a considerable level of foreign activity in the stock market in 2017, where a net foreign inflow of Rs. 40 billion has been recorded year-to-date in the primary and secondary markets,” the statement said.
Foreign purchases during the first half of 2017 also established a record for the highest foreign purchases recorded in the first half of a calendar year, it said.
“Investors from the US have consistently been the leading contributors to foreign turnover in the Sri Lankan stock market, and have contributed to 40% of the total foreign turnover since the year 2013.”
SEC Chairman Thilak Karunaratne said every country’s stock market has its own mix of investors.
“This mix will have an impact on the efficiency of the stock market. This year in particular it is the foreign investors who have driven the stock market and to date there is a net foreign inflow of Rs. 28 billion to the CSE,” he said.
“This is the second highest yearly net foreign inflow on record. The US is ranked as the number one contributor to this record figure and we are confident that this Road Show will further strengthen the inflow of funds from the US to our stock market."
CSE Chairman Ray Abeywardena said numbers related to foreign activity indicate that foreign investors have identified an opportunity in the Sri Lankan stock market.
“Considering such interest and activity, a forum of this nature in what is largely regarded as the largest fund hub in the world would help make a strong case for the Sri Lankan capital market, at a time when we have the attention of foreign investors.”
The forum follows successful Invest SL forums conducted in Australia this year, which have contributed to 2017 establishing an all-time high in foreign purchases originating from Australia in a calendar year.
(COLOMBO, Sept 14 2017)