Saudis Offered Islamic Investment in Sri Lanka

31 May 2008
RIYADH -- A leading Shariah-compliant financial services provider in Sri Lanka has called on Saudi corporate clients to invest in the Colombo Stock exchange for attractive dividends.

Mohammed Riyas, director of Sales and Business Development of Colombo-based Amana Securities Limited, said that he had come to offer unique services to Saudi clients to identify and trade in companies complying with Islamic Law based on the parameters prescribed by internationally accepted Shariah scholars.

"Our unique portfolio of services will include a white list of stocks that comply with Shariah parameters and provide access to local and foreign funds that require Shariah-complaint investment avenues. "

Riyas said that Amana Securities Limited has displayed a clear vision and leadership by launching the DJIM Amana Sri Lanka Index, a pioneering distinction that brings global exposure and a wider vista of investment opportunities.

"It is one of the 20 companies permitted to trade on the Colombo Stock Exchange," he said.

The Lankan bourse has 235 listed companies representing 20 business sectors. The market capitalization in March was 835.3 billion Sri Lankan rupees (SR28 billion) and the CSE recorded its highest daily turnover of 33.4 billion Sri Lankan rupees (SR1.151 billion) on April 1. It is one of the top performing markets in Asia, with an average annual index growth rate of 27 percent.

Share trading in Sri Lanka dates back to 1896 when the Colombo Brokers Association commenced the share trading in limited liability companies which were involved in opening plantations in Sri Lanka.

"The trading activity was automated with the installation of the Automated Trading System in 1997," he said, adding that the technology introduced by the bourse has significantly enhanced its competitiveness and has provided a more efficient and transparent market. The exchange is currently in the process of introducing a debt securities trading system for trading of fixed income securities.

Companies listed on the exchange have seen a large increase in foreign investment following the improvement in the security situation in the country.

"Besides reputed international company like Marks & Spencer, Maxis, the largest telecommunications company of Malaysia, and Bharti Airtel of India have invested a substantial volume in the communication fields," he noted.

Buoyed by improved investor confidence due to positive political developments and strong corporate results, the exchange has continued to achieve strong growth in 2007, as the ASPI passed the 3,000 mark for the first time in its history on February 13 reaching a record high for the seventh consecutive day.

Speaking about Sri Lanka, Riyas said that the island with a population of 24 million enjoys a 92 percent literacy rate, second to Japan among the ASEAN countries.

"Its per capita income is $1,617, next to Maldives in the region," he said, adding that his country has the highest number of CIMA qualified accountants in the world after Britain. He added that the island country is strategically located only 25kms from a major international shipping lane 14,000 ships sail through the channel and can be a launching pad for investments in the region.

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© Arab News 2008