US funds commit Rs. 43 b for 2008
Asia Capital, Central Bank end successful road show:
United States based Funds have pledged a whopping US$ 400 million
(around Rs. 43 billion) into Sri Lankan Government Securities before end
The assurance has been given to Asia Capital Ltd by its US partner
Auerbach Grayson and Co. LLC of New York which has direct access to
major United States based funds who have pledged the funds before end
2008, Asia Capital 's Head of Treasury Nandi Anthony told Daily News
Among these large number of American funds, have been Goldman Sachs,
Fidelity, All Bright Capital, NWI, Invesco and Loomis.
This assurance is a sequel to the road show attended by a two member
delegation each from Asia Capital and the Central Bank of Sri Lanka at
the beginning of this month jointly organised with their US partner
"Given the relatively low level of rates and the rate cuts, currently
prevalent in USA and the current stability of the rupee against the
dollar, investment in Sri Lankan bills and bonds provide prospective US
investors with an investment option that would yield far greater
returns," Anthony said.
The Asia Capital delegates at the road show were Managing
Director/CEO Asanga Seneviratne and Head of Treasury Nandi Anthony.
The Central Bank delegates were former Superintendent of Public Debt
Dharma Dheerasekera who is now seconded to the International Monetary
Fund as Assistant Governor of the Central Bank and the incumbent
Superintendent of Public Debt C.P.J. Siriwardena.
Anthony said these fund managers, who had earlier invested in the Sri
Lankan equities market and in dollar denominated sovereign bonds through
Asia Capital and Asia Securities, showed a high level of knowledge about
the Sri Lankan economy and capital market and in particular posed
questions mainly focusing on key areas such as inflation, rupee
depreciation against the dollar, trade deficit, ethnic war and political
The Sri Lankan team was able to effectively field these questions
based on the road map set out by the Central Bank of Sri Lanka.
These road shows coincided with the Sri Lankan government's decision
to liberalise treasury bill investments to foreigners.
Subsequent to this road show, foreign funds have invested over rupees
one billion in Treasury Bills, within a space of ten working days as
reported in the Daily News Business story of May 26.