Declining bank interest rates prompt Rs. 4 billion IPO by Almas Holdings

By Hiran H.Senewiratne

Almas Holdings, a leading business entity in Sri Lanka, will be listed in the CSE in the near future to raise Rs 3-4 billion capital to expand its operations, Group chairman Imtiaz Buhardeen said.

“Bank interest rates at one time were above 30 percent. Now they are showing a declining trend, which will likely settle at a single digit towards the end of the year. Therefore, investing in the CSE would be more lucrative than depositing in fixed deposits. That has prompted me to go for an Initial Public Offering (IPO) of the company in the future, Buhardeen told The Island Financial Review.

Buhardeen added: ‘We are into transportation, manufacturing, power and energy, plantations, banking and financial sectors and listing our company in the stock market will enable us to build a bigger portfolio of business.

‘Investing in the stock market is more accountable and transparent than investing in other sources because every quarter of the year listed companies are mandatorily expected to publish their quarterly results. This itself is an indication that investing in the stock market is a more reliable and transparent mode for one to invest in a bigger way.

‘Since, Sri Lanka has gone to the IMF and import restrictions are being relaxed slowly and steadily, it will enable us to have more positives in the long term perspective. Because this time IMF is observing Sri Lanka very carefully and Sri Lanka has to implement reforms in all sectors in a prudent manner.’