Semasinghe says recent economic crisis was a catalyst for long-ignored reforms

Finance State Minister Shehan Semasinghe says the recent economic crisis has been a catalyst for the long-ignored reforms that would finally put an end to these economic vulnerabilities.

“We believe that this provides Sri Lanka with the opportunity to finally fulfill the tremendous potential that has been suppressed for too long. This creates great opportunity from an investment perspective across multiple asset classes.”

The lawmaker’s remarks came during the “Invest Sri Lanka” Investor Forum India in Chennai and Mumbai on Wednesday (Aug. 09).

The forum was organized by the Colombo Stock Exchange (CSE) in association with the Confederation of the Indian Industry (CII) and stockbroker firms. This is a series of forums that promote foreign portfolio investment into the Sri Lankan stock market by showcasing investment opportunities in Sri Lanka.

He emphasized that this is an ideal time for investors to position themselves to benefit from investing in Sri Lanka, as the island nation is preparing to embark on a rapid economic recovery followed by sustainable and equitable growth.

While addressing this forum, the state minister highlighted Sri Lanka’s attractiveness from an investment perspective, which has long been apparent but thwarted by persistent macroeconomic imbalances.

Speaking further, Semasinghe said, as inflation returns to single-digit levels, locked in by strong institutional and legislative reforms, the expected decline in interest rates creates clear opportunities in both equity and fixed-income markets.

At a firm level the decline in interest rates will ease finance costs that have hurt the bottom line for many companies in the recent past, he commented further, adding that lower rates will spur investment in anticipation of economic growth in the coming period.