Tue, 28 Jun 2022 Today's Paper

Spike in capital raising activities expected next year

28 December 2020 10:28 am - 0     - {{hitsCtrl.values.hits}}

A A A

  • Rating agency official says receiving increased inquiries seeking new credit ratings
  • Concessions announced in Budget 2021 for new CSE listings may be  also fueling interest 

A rating agency official who declined to be named said they are receiving a considerable number of applications seeking new credit ratings, in an indication that coming year could see an influx of companies wanting to raise money either through equity or debt. 


This development signals that the country’s capital market is bracing up for a busy year ahead for equity and debt issues by existing companies as well as from new ones seeking fresh listings, buoyed by the positive momentum in the Colombo Stock Exchange and the better than expected performance in the economy as seen from the third quarter recovery in the gross domestic product.


Policy consistency and political stability act as key underpinnings of this development and perhaps the tax concession offered by the budget for companies seeking listings on the Colombo Stock Exchange in 2021 may have added a flywheel to the enthusiasm. 


The Budget 2021 announced a 50 percent tax concession for companies that will file for listings before December 2021 and tax them at 14 percent each in the subsequent two years to encourage companies to seek listings as part of the broader capital market development plan by the incumbent government.


In any case, the capital market and the broader economy is expected to fare well starting from 2021, particularly with the country re-opening for tourism in the early part of next year. In a possible hint, Fitch Ratings recently said they expect some smaller banks to raise capital in 2021 to reach their minimum capital level of Rs.20 billion, ahead of the extended regulatory deadline by end-2022.

Cargills Bank is expected to hit the market next year as they deferred their plans this year due to the pandemic. 
In an earlier instance, a capital market official said a few technology companies led by a large technology firm could file for an Initial Public Offering next year. 


Several key State-owned enterprises could also see their entry into the market as the government remains conscious of the need to enhance efficiency and put checks and balances into their activities.  

 

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Mirihana land reclamation project leaves farmers fuming

At present reclamation activities are underway at an 80-acre paddy land close

Is there a solution? Sustainable Fuel Bill for road transport

There is a great mismatch in spending between Sri Lanka’s total imports and

Aloka Pooja at Thanthirimale courtesy Wijeya Newspapers

The historical Thantirimale Raja Maha Viharaya, which associates itself with

Lessons from the fiasco over the detention of ‘Aeroflot’

As if Sri Lanka did not have enough problems, the government last week let an