Several international funds are seeking investment advisory services specifically for Sri Lanka where risks are now very much in line with quantifiable risks of other emerging markets. Amura Consulting, a financial consultancy firm headquartered in Singpore led by Romesh Jayawickrama, and whose clients include Templeton Asset Management, one of the largest emerging market funds in the world with US$30 billion in assets under management, is opening a permanent office in Sri Lanka.
Mr. Jayawickrama told the Sunday Times FT that the decision to open a office in Sri Lanka to be led by Anarkali Moonesinghe was prompted by both the increasing pipeline of work locally and also by the increasing engagement by global funds requiring assistance in their investment analysis and due diligence on the country. Ms. Moonesinghe has extensive experience in financial services and banking and has previously worked for Merill Lynch in London.
“Although the change of the local environment has resulted in a rapid performance of the stock market, the underlying corporate and economic growth will take time to filter through,” Mr. Jayawickrama explained. “Sri Lanka has been the top performing market in the world in the year to date but most international funds are more excited by the more sustainable long term prospects of economic and corporate growth.”
He said Amura Consulting which has been at the forefront of advising international top tier emerging market capital for many years, now cites Sri Lanka as one of the most exciting markets in the world. “Given the global meltdown in the last two years, risk analysis alone has become even more important. Excessive asset inflation followed by greed got in the way of responsible lending and investing.
At Amura, we spend the greatest amount of time analyzing risk in every dimension and look to create structures and investment vehicles that minimize risk for the investors while maximizing the long term benefits to the corporate.” Mr. Jayawickrama said that Templeton’s Executive Chairman Mark Mobius and his team visited Sri Lanka last week and along with Amura, met with several companies, seeking potential investment opportunities particularly in structured transactions and private equity and caused significant speculation amongst brokers and investors alike.
Most investment institutions have understood the potential of both the Sri Lankan stock market and the economy as a whole, but have held back due to the intangible risks associated with a country in conflict. Mr. Jayawickrama said Dr. Mobius and his team firstly look for value, followed by strong management, good corporate governance, and sustainable business models.
“They are not sector specific or country specific, but the above parameters form the backbone of all their investments around the world. We certainly cite a number of companies that fit these investment criteria in Sri Lanka, in both the areas of public and private equity.”
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