CIMB mulls Sri Langka ops expansion

CIMB Group, the first international investment bank to open a local office in Sri Lanka, is considering expanding stock brokerage and banking business in that country.

Group Chief Executive Datuk Seri Nazir Razak said the group, which started operations in Sri Lanka this year, is now providing investment banking and corporate advisory services.

"Our capital is small at US$2 million which involves hiring people for advisory work in Sri Lanka," he told "Invest Sri Lanka: Opportunities in a New Era" conference jointly hosted by CIMB Group and Colombo Stock Exchange.

CIMB Group holds 51 per cent stake in the joint-venture share capital via its wholly-owned subsidiary, CIMB Securities International Pte Ltd, with the remaining 49 per cent held by Lovell and Dangalla.

Sri Lanka's economy has been resilient with an average gross domestic product (GDP) growth of 4.8 per cent over the past 30 years.

The Sri Lanka government aims to double GDP per capita to US$4,000 by 2016 and touch US$6,000 per capita in 10 to 12 years, equivalent to Malaysia's GDP per capita in 2009.

Sri Lanka Central Bank governor Ajith Nivard Cabraal said terrorism has been totally wiped out in the country.

He said the Sri Lanka government was open to foreigners setting up banking operations in Sri Lanka, with preference given to banks, which can provide credit facilities for infrastructure development and small and medium enterprises.

Colombo Stock Exchange chairman Krishan Balendra said as part of the initiative to boost capital market, Sri Lanka has liberalised foreign investments and was offering additional incentives.

"100 per cent foreign investment in any commercial trading and industrial activities are allowed except for a few specified sectors," he told the seminar participants. -- Bernama