Apr 28, 2015 (LBO) – South Asia needs to make financial instruments for people who are in the bottom of the economic pyramid rather than making instruments only for riches, Deputy Minister of Policy Planning and Economic Development of Sri Lanka said.
“All of us in the SAFE (South Asian Federation of Exchanges) are facing similar situations as developing countries, the need to and are elevate poverty and create a strong middle class,”
Harsha de Silva, Deputy Minister of Policy Planning and Economic Development of Sri Lanka said.
“However Exchanges always develop instruments for the rich, for those who can invest Millions; they don’t pay enough attention to the small and medium enterprises.”
“These are common issues that we need to address and sort,”
“And to do that we need to create an environment where investors can come.”
World Bank data showed that South Asia sustained average growth rate of 6.7 percent over 2000-2012 and emerging as the second fastest growing region in the world.
Today South Asia operates various assets classes in addition to the robust presence of banking, insurance, capital market intermediaries, private equity, asset management and other associated financial services industries.
De Silva said market exchanges need to provide diverse asset classes for investment, in order to create a market where, various investors are able to invest.
“Therefore we need to cooperate and create these various asset classes and present South Asia to the world as a unified whole that also serves wealth for the bottom of the pyramid,” He said.
“We also need to compete amongst ourselves I do not think that the extremes can compete, however markets of similar size can,”
“However we need to formulate a structure where we can all compete and we all win.”