Both the Board of Investment (BOI) and the Colombo Stock Exchange(SEC) should take urgent steps to woo investors who were planning to invest in the troubled Gulf region. They should also study multimillion companies that are already in the war affected region who want to exit from there and invest elsewhere.
This was opined by economist and Director of the Postgraduate Institute of Humanities and Social Sciences (PGIHS) at the University of Peradeniya Prof. Wasantha Athukorala in an interview with Daily News Business. He said that more than the stock market it is the BOI that should work on this area with bigger interest as entrepreneurs who invest in Sri Lanka would stay in the country for a long period giving the country more benefits.
“In the case of the stock market they can invest and withdraw at any time,” he said.
Prof. Athukorala said that for the past two and half decades Sri Lanka has been a peaceful country with a good investment climate and this is a factor that should be highlighted to woo investors. He also said that both Japan and KOICA (KORA) have met President Anura Kumara Dissanayake and pledged that they would continue with the stalled mega development project. In addition, major countries like the USA and India too have pledged their support to the new government.
“These are some other major plus points that should be marketed to woo foreign investors.” He said that with the change of government the new administration has promised a new political culture and a regime sans corruption. “The government seems sincerely working towards this as a lot of new appointments have been made to key institutions which were marred with corruption.”
Asked why there is a stock market boom after the elections he said that it was because of inventor confidence in the government. “Investors world over want political and economic stability and this was not evident prior to the elections. But the appointment of a new president from a new political party breaking political tradition after 76 years has given a stamp of confidence for the investors.”
“I think this trend is likely to continue in the general elections as well as the public see confidence with the current policies that are being implemented as they see a difference. Business community and investors when the earlier president was appointed saw old wine in a new bottle and now people see new wine in a new bottle,” he quipped.
He also said it’s not only the politicians that run the country but also public servants hence the new leadership must ensure the implementation of a new working culture in this segment.
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