Mar 20, Colombo: Sri Lanka is following growth model based on private sector investment and exports and looking to tourism and logistics as growth drivers, the Chairman of the Colombo Stock Exchange Vajira Kulatilaka says.
In an interview with the CNBC, CSE Chairman said while tourism is one area of possibility for growth Sri Lanka is also taking advantage of its unique location in the Indian Ocean. Since many shipping lanes from east to west are around Sri Lanka and many ships have to pass through the island increasing the logistics activities, developing ports around Sri Lanka is the other possibility, he explained.
Also Sri Lanka has also has a very big advantage of being next to India, the fastest growing largest economy in the world, he said.
Speaking about the openness of the stock market, the Chairman said there are some deregulations that has to take place but openness with regard to bringing in money and taking back is already there and it is guaranteed by the constitution itself.
"You can bring in money, no questions asked," he said adding that however, openness regarding the amount of instruments available, the market has to "achieve a lot."
One area the market is trying to develop is to bring the risk down, such as introducing the Counterparty Guarantee system and introducing derivatives after that to expand the instruments available in the market.