The London Stock Exchange (LSE) is optimistic on Sri Lanka given the strong post-war upside for the economy and capital markets and is urging the country and companies to harness the global giant’s strengths and reach to grow better.
“Following the end of the conflict, Sri Lanka has evolved with an attractive and strong growth story, which many countries and international companies have taken notice of,” LSE’s Group CEO Xavier Rolet told the Daily FT yesterday (23) in an exclusive interview. “I think the time is right for Lankan entities to tap the vast international pool of capital,” he added.
Rolet opined that post-war Sri Lanka promises high growth scenario in sectors such as infrastructure, transportation, construction, real estate, tourism, manufacturing, services and funding needs for companies engaged in these areas can explore prospects in global markets.
“Accessing funds competitively and conveniently will help turbo-charge growth in these sectors,” he said, adding, “Sri Lanka has a great tradition of entrepreneurship and entrepreneurialism both at family and corporate level.”
LSE is the most international of all the world’s stock exchanges and has a choice of markets providing one of the world’s deepest pools of investment capital. Europe’s leading diversified exchange business, LSE has around 3,000 companies from over 70 countries admitted to trading on its markets.
The improving profile of Sri Lanka is another reason why LSE believes that if the Colombo Stock Exchange (CSE) and the Securities and Exchange Commission are willing, a greater collaborative effort can be made to woo international investors.
“We are keen to cooperate and collaborate and not compete with Colombo,” the LSE CEO assured.
When the idea of an international board or closer collaboration between LSE and CSE was first mooted, most analysts viewed it as a major development which will help draw in a new base of foreign investors as well as boost liquidity levels of Sri Lankan stocks. Apart from LSE’s impressive stature and scale, the time differences between London and Colombo provide continuous trading opportunities, says the Daily FT.