US markets crashing – an opportunity for Lanka

Despite fears of the local stock market crashing in tandem with the stock markets in the US and elsewhere, many industry stakeholders feel this situation is a case of opportunity in adversity.

Dimuthu Abeysekera, CEO Asha Philips (Pvt) Ltd pointed out that the local market has come down so much that there is ‘no room’ for it to come down further. “Our market came down due to the ground situation in the country and rising interest rates. Crashing of world markets would not have made any impact,” he said.

Ramal Jasinghe, CEO Asian Alliance Plc said that because Sri Lanka has a more ‘controlled’ atmosphere, the local economy seems to be insulated.

“We are less significant in the greater scheme of things. Markets crashing elsewhere may in fact have an opportunity for our market, because investors may see the local market as an alternative and we should exploit this.”

Deva Ellepola, CEO HNB Stockbrokers (Pvt) Ltd said that since the local market is trading at comparatively cheap prices compared to other regional markets, the effect of global markets crashing will have a very marginal effect in Sri Lanka.

“The foreign investor participation here is not very far and wide. The US market is going out of favour and many investors are looking at emerging markets.
Sri Lanka is less susceptible to external shocks compared to other markets, so there is an opportunity here,” he said.