State entities to be pushed to raise funds from capital markets

Efforts will be rolled out to actively encourage the appropriate state entities to raise funds from capital markets.

“The government will actively encourage private and appropriate state entities to raise funds through listed equity and debt capital markets,” President Anura Kumara Dissanayake told Parliament yesterday.

However, he stressed that the capital markets need to be deepened and evolved in terms of sophistication.

As bank interest rates decline, he pointed out that it has become even more important for the retail investors to have access to well-regulated financial products to get reasonable returns.

“Unit trusts, investment funds and other collective investment schemes will be important in filling this gap in the market. It is important for the sector to explore innovations and more complex transitions whilst ensuring due diligence and all necessary safeguards, amidst an effective regulatory environment,” he added.

Meanwhile, the government is proposing to increase the capital gains tax (CGT) rate applicable for individuals and partnerships to 15 percent and CGT rate applicable for all other entities to 30 percent, on a par with the corporate CGT rate.