Annual Report 2010 - Ministry of Finance and Planning
Annual Report 2010 - Ministry of Finance and Planning
Annual Report 2010 - Ministry of Finance and Planning
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<strong>Ministry</strong> <strong>of</strong> <strong>Finance</strong> <strong>and</strong> <strong>Planning</strong> Sri Lanka > <strong>Annual</strong> <strong>Report</strong> <strong>2010</strong>taken including the turnover <strong>of</strong> theUnit Trust industry being exemptedfrom Economic Service Chargewhilst foreign investment restrictionsplaced on Unit Trusts investing inGovernment Securities being relaxed.To encourage companies to list on theColombo Stock Exchange, expenseson listing a company were permittedto be deductible subject to a limiton the value <strong>of</strong> the Initial PublicOffering. The anomalies which existedin the application <strong>of</strong> withholding taxbetween corporate debt securities<strong>and</strong> government securities wereremoved enabling both categoriesto be treated alike in respect <strong>of</strong>withholding tax.Table 3.4 > Market Performance<strong>2010</strong> 2009All Share Price Index (ASPI) 6,635.9 3,385.5% Change 96.0 125.5Milanka Price Index (MPI) 7,061.5 3,849.3% Change 83.4 135.9Equity Turnover (Rs Mn) 570,326.8 142,462Daily Average Turnover (Rs Mn) 2,396.3 593.5Transactions (No) 3,355,126 1,266,299Net Foreign Inflow (Rs Mn) (26,376.3) (789)Foreign Investor Contribution to Total18.8 30.5Turnover (%)Listed Companies (No) 241 231Member Firms/Trading Members (No) 23 21Market Cap (Rs Bn) 2,210.5 1,092.1Market PER (Times) 25.2 16.5Turnover to Average Market Cap (%) 34.2 18.0Dividend Yield (%) 1.2 3.0No <strong>of</strong> New Issues 10 3Amount Raised (Rs Mn) 4,347.4 1,219.3Source; Securities <strong>and</strong> Exchange Commission <strong>of</strong> Sri LankaInsurance ReformsDuring the year <strong>2010</strong>, the InsuranceBoard <strong>of</strong> Sri Lanka has endeavoredto give the sector a new growthmomentum in terms <strong>of</strong> Investment,strategies <strong>and</strong> regulatory scope.While strengthening the stability <strong>of</strong>the Insurance market, the Board hasstrengthened the supervisory <strong>and</strong>regulatory framework.Emphasis was placed on maintainingintegrity <strong>and</strong> pr<strong>of</strong>essionalism, tosafeguard the interest <strong>of</strong> policyholdersas well as the potential policyholders.The supervisory aspects wereconsolidated by strengthening rulesto be able to scrutinize aspects suchas the solvency margin, investments,<strong>and</strong> the minimum capital requirement.However, keeping pace with thedevelopments in the global insuranceindustry <strong>and</strong> the prevailing trendsin the financial markets, steps weretaken to transform the rules- basedsupervisory system to a risk sensitivecapital model for insurance industrysupervision. As a risk based capitalmode yields for a more risk sensitivecapital requirement, the Board tooksteps to increase the minimum capitalrequirement for new companies thatseek registration as an insurer, from Rs.100 million to Rs. 500 million per class<strong>of</strong> insurance business. It is believedthat this new model will st<strong>and</strong>ardizethe supervisory system <strong>of</strong> theinsurance industry in Sri Lanka to beon par with international st<strong>and</strong>ards <strong>of</strong>risk oriented management <strong>of</strong> insurers.187
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