The freedom given to two state banks to list on the stock exchange under the 2018 Budget proposals is a welcome change and it will have a clear and positive impact on liquidity and share prices in the capital market, said Ceylon Chamber of Commerce Chairman Rajendra Theagarajah.
“These two banks have been given the freedom, if they wish to list on the stock exchange. It doesn’t mean privatization; it’s about listing and opening them up to the public.”
Theagarajah made these sentiments speaking at the BDO Budget seminar 2018, held at the auditorium of Chartered Accountants of Sri Lanka.
According to Theagarajah, these two banks jointly command about 40-50 percent of the assets of the banking sector. While commending proposals relating to the export-focused economic growth, Theagarajah noted that the Ceylon Chamber expected consistency with the policies.
He further noted the trade liberalisation proposed is a smooth transition in the economy.
Deputy Secretary to the Treasury S. R. Attygalle speaking at the event stressed that revenue generation is important as there is a requirement to repay loans that have been obtained in the past.
According to him, Sri Lanka has to pay Rs. 7,000 billion as debt repayments within the next three years.
Commenting on the Debt Repayment Levy, Attygalle said a levy is proposed to be imposed on all transactions including cash and non-cash, such as electronic payments, from all financial institutions.
The levy should be paid by the financial institutions and not be passed on to the customers. The levy will include the repayment of international sovereign bonds as well.
Chemanex Group Consultant Preethi Jayawardena also noted that 65% of the economy is backed by the SME sector and access to cheap source of funds has been very rightly addressed under the 2018 Budget.
Add new comment