Oct 30, 2010 (LBO) – A new Sri Lankan investment fund that opened for subscription Friday is targeting the banking sector which is seen doing well given the need for funding to fuel an economic boom, officials said. “We expect many new projects to need financing in the fast growing sectors of the economy.” Deutsche Bank and Ceylon Asset Management (CAM) Company have set up the Ceylon Financial Sector Fund to invest in banking, finance and insurance companies which have outperformed the share market this year.
The sector is forecast to grow strongly given accelerating economic growth after the end of the island’s 30-year ethnic war in May 2009, officials said.
Fund units are offered at 10 rupees each with a minimum investment of 10,000 rupees.
“The banking sector has outperformed the All Share Price Index,” Dulindra Fernando, managing director of CAM told a news conference.
“We’ve created this fund that enables investors to capture part of this booming industry. It is an open-ended fund, fully tax exempt and money can be withdrawn anytime.”
CAM Company is a joint venture between Sri Lanka Insurance Corporation which has a 25 percent stake and Ceylon Capital Trust which has 75 percent.