EPF assured 12% interest for two years and 9% for 6 years:
SOE delisting vital irrespective they make profits or losses:
The local debt restructuring program is something that is very essential for the country as it has not created any major negative impact towards the banking and other sectors, said Group Chairman almas Holdings, a diversified and leading business conglomerate, Imtiaz Buhardeen. (Pictured)
He said that though there is a much talked about topic being created that the DDR will have a major negative impact for the EPF this is totally false.
“This is something that is politically motivated and is a slogan played by some interested parties to dampen this process,” he stressed.
Explaining further he said that the EPF depositors would keep on getting 12% interest for a period of two more years and thereafter the interest rate will come down to 9%.However there is an assurance that the interest rate of 9% would be guaranteed for a period of six years.”
He said that the current interest rate for fixed deposits offered in Sri Lanka is also coming down and predicted that the interest offered by them too would be very near to what the EPF interest would be offering in two years. “Hence these hues and cries against FPF are politically motivated.”
Buhardeen also said prior to the announcement of the DDR opposition political parties and pressure groups said that the implantation of it would result in the local banks crashing. “Such a thing also never happened.”
He said that Sri Lanka had sought assistance from the IMF 16 times seeking financial assistance and they were provided.
“However the reforms agenda that was spelt out by the IMF was never implemented in full by successive governments. Hence today IMF is like a school principal looking to see if Sri Lanka is implementing the IMF reform agenda.”
“I must emphasize that this time around the government is very serious and the proposed reform agenda that will take the country to its next level of development is slowly but surely taking place.”
Buhardeen, a thought-leader in the capital markets of Sri Lanka said that in addition to the IMF international donor community including India, China and Japan and Paris Club too are observing if Sri Lanka is falling behind the IMF reform properly.
“They also know that to succeed this IMF program a local DDR is needed.”
He also said that State Owned Enterprises (SOE) delisting too should be done irrespective if they are making profits or losses. “By moving them to the private sector, profit making SOE’s could double their current profits while bleeding SOE’s can be turned around.”
The capital raised through the delisting process will help to increase reserves. He also said the Colombo Port City development too would be a major game changer for Sri Lanka.
almas Holdings to raise Rs.3 to 4 Bn. capital via IPO next year
almas Holdings, is looking to raise Rs. 3 to 4 billion capital via an IPO next year to expand its operations in the country, its Chairman Buhardeen said.
He said that they are looking at raising capital to pump back into the stock market to take more ‘shares’ of other listed entities and also to expand their current businesses in the transportation, manufacturing, power and energy, plantations , banking and financial sectors.
He said that with the bank interest rates and other financial tools coming down rapidly, investing in the Stock market is the most viable option and this message should spread socially to rural areas. Buhardeen said that once you make a fixed deposit the interest and the capital comes at maturity and if they are invested in the market better returns could be expected. He said that more companies including the SME sector too should list in the stock market which will enable them to build a bigger portfolio of business.
Investing in the stock market is more accountable and transparent than investing in other sources because every quarter of the year those listed companies are mandatory to publish their quarterly results.