At a time when the Colombo Stock Exchange (CSE), financial and other instutions such as banks and leasing companies were becoming more active due to the low interest rates and opening of the Central Bank capital accounts the insurance industry has much potential for growth in the local and international market, Securities
and Exchange Commission, Director General, Channa de Silva told Daily News Business.
He was speaking at the National Insurance Congress 2009 at the Cinnamon Lakeside yesterday.
As an emerging market we feel the direct and indirect impact more than the markets that were firmly established, given the fact that our stock market recorded a 60 percent growth rate since May this year with the ushering of peace.
The CSE is the fifth best performing stock market in the world with a 98 percent of return.
This is a significant achievement for us, which shows that foreign investors are taking note of it.
We are assured of even further growth in the future, he said.
Though the United States and other industrial countries in the West had held the international currency market, the world s next economic power would be Asia.
Countries such as China and India, which were not affected by the global economic downturn, would contribute towards a new economic order. Sri Lanka too has a role to play as an emerging market, de Silva said.
He said the country s economy was performing well with inflation and interest rates had been brought down to a single digit.
The Sri Lankan Rupee was stable against most international currencies as the economy was strong even during the global economic crisis.
Therefore, international investors took an interest in the local stock market and took to the industries and other economic sectors.
The Director General said the insurance industry too has to become an international sector and to achieve that goal local insurance companies should work together as an industry without seeking individual benefits.