JKSB Optimistic Over SL's Ability To Return To Dollar Bond Market

Lauds government for handling pandemic “exceptionally well”. Expects CBSL’s dovish policy to continually support the economy as inflation remains benign. Says monetary and fiscal stimulus key for supporting small biz, including travel & tourism. Expects current lower tax rates to remain as the economy needs incentives

John Keells Stock Brokers (JKSB) remains optimistic about Sri Lanka’s ability to return to international capital markets to raise funds it needs as the economy normalises after the coronavirus-related lockdowns dealt a severe blow from April through May, though the fiscal condition remains a concern.

In a research report titled, ‘Sri Lanka Market Strategy,’ which looked at the broader economy and the outlook for selected leading listed corporate entities, JKSB said the lower rates in major developed markets and the normalised domestic economy act as main triggers for the country’s ability to re-tap the global dollar borrowing market for the foreseeable future once the fiscal concerns are alleviated.