Wednesday, October 27, 2010

Dr. Amunugama pitches for stock exchange

By Mario Andree

Deputy Minister Finance Dr. Sarath Amunugama said the government will not provide any sort of relief on the low returns generated by bank deposits. He said companies with extra cash should venture into new investment sources thereby helping the country activate much needed investments.

"The country is at a critical point in developing its economy. The inflation rate is low the country’s interest rate is more investor friendly. The previous high interest rates where for the banks to attract more savings in assisting the country gather more capital. However after the war the country has become one of the favourable destinations for investment and the government has taken measures to help develop investment at the Colombo Stock Exchange (CSE)," Dr. Amunugama said. He said private sector companies have been complaining that returns from their bank accounts were far below expectations after the reduction of interest rates. They request the government to provide relief for their savings.

But he said that the government cannot provide such relief to account holders.

"These companies could venture into other means of income such as investing in the CSE," he said.

Dr. Amunugama said the risk of investing in the CSE has been minimized and was an ideal place to generate more profits. At the same time, many companies have listed to raise capital for their projects.

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