Swedish asset manager says Sri Lanka has an edge over other emerging markets


by Sanath Nanayakkare

If Sri Lanka's listed companies further enhanced their transparency level, information standards and corporate governance principles, they have better chances of attracting more foreign capital and add more value to their stocks than companies in most other emerging markets, Tundra Fonder, the Sweden-based global asset management company said in Colombo recently.

Tundra Fonder has identified Sri Lanka as a core market and has its holdings in Sri Lanka. The company had recently announced via its website that that their new holdings in Sri Lanka included the Commercial Bank of Sri Lanka and the Hatton National Bank. It has invested in new growth markets with high potential such as Pakistan, Vietnam and Sri Lanka.

"If Sri Lanka's listed companies are willing to work with us on these areas of prime concern to potential investors, we can help you increase investments for our mutual good, Mattias Martinsson, founder and CIO Tundra Fonder AB said while addressing a forum titled, "Tundra Fonder Sustainability Forum 2018"- assisted by the Colombo Stock Exchange (CSE).

"We are very positive about the development of Sri Lanka’s economy which is going to be further driven by the impact from the One Belt -One Road initiative of China. We, sometimes, refer to Sri Lanka as "the next Singapore" with its strategic location outside of India, and increased investments in ports and industrial zones, we see a rapidly expanding service sector", Mattias said.

Further speaking he said," Sri Lanka has a robust literacy rate over 90% of the general population and a good education system which is one of the best in the new emerging markets. This will ensure a good workforce which ultimately help businesses and the social fabric of the country in the long term. Sri Lanka’s unique position as a growing tourist destination provides a good boost to the current account balance. Your tourism revenues account for 4% of the GDP and is expected to grow by 12-15% per year. However, despite strong growth, the number of tourists per year is just above 2 million currently. That is only a 1/3 more than Mauritius which is 1/30th Sri Lanka’s size. The comparison with Mauritius is relevant because both countries focus more on the high-end tourism segment. If Sri Lanka continues to work on its infrastructure programme, the country will be able to capture this desired tourist segment in a few years", he said.

"The ongoing effort to make Sri Lanka a value-destination for investors needs to be a concerted effort of all stakeholders as no single player could perform this feat alone. We need to convince investors that Sri Lanka is committed to meeting environmental, social and governance goals. Let's do it together", he noted.

animated gif
Processing Request
Please Wait...