Asset Class

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

Mar 05, 2008 (LBO) – Borrowing for day to day government spending has increased the cost of money for Sri Lankan companies and families struggling to get their first mortgage. A Malaysian economist says experience from his country suggests that the government could start a specialist infrastructure bonds, and create a market among pension funds, insurance funds and other savers.

Shamindra Kulamannage from ETV’s Lanka Business Report (LBR) show talked to Rating Agency Malaysia’s chief economist Yeah Kim Leng about capital market development challenges in Sri Lanka and fears about the economic impact of a recession in the US.

LBR: In Sri Lanka the banking sector dominates the market here. In the short term what can corporations do to mobilize cheaper money?

A: In order to break that, you need to widen the pool of investors. Long term pension funds, insurance companies as well as other possible high net-worth individuals that require long-term assets to match their long term liabilities are possibilities. You have to broaden the investor base and perhaps promote this as an alternative asset class that can help improve their returns.

So the bon