Financial Times

Inflation futures is a possibility – SEC Consultant

Sri Lanka's inflation can be incorporated into a futures derivative, according to a derivatives consultant. "There is some good work to be done on inflation. A futures contract on inflation is something to think about," Ajay Shah, Consultant to the Securities and Exchange Commission (SEC) on the derivatives initiative, told The Sunday Times FT.

He said Sri Lanka can establish an inflation related index where firms can hedge their inflationary positions. He also said that Sri Lanka can manufacture derivative products in the country and sell them abroad. "Sri Lanka can come up with a tea futures market. You can trade in tea futures contracts targeting Indian, British and Kenyan markets," he said.

Similarly he said a rubber futures is an option. "Rubber futures is banned in India. This is an ideal opportunity," he added. Mr. Shah pointed out that a freight futures contract should also be looked at. "The Colombo Port is well plugged into logistics movements. So a freight futures contract targeting Dubai, Singapore and Bombay is a lucrative option," he explained. He also pointed out that Sri Lanka can capitalise on Indian state controls on capital markets.

"Indian state/public policy is stopping some financial markets. So Sri Lanka can capitalise on this, but the key is to get the product out to the correct customers," he said.

Top to the page  |  E-mail  |  views[1]
Other Financial Times Articles
LMSL owes Rs 1.5 bln in taxes-Inland Revenue
Hunter's director resigns, CSE yet to be informed
New rules, regulations for Development Lotteries Board
LMSL to run floating storage facility
LMSL - Preparing to vacate
Acting on SC decisions - Comment
Promoting tourism in South Asia
MTD to bid for toll roads in Colombo city
SriLankan Airlines takes measures to cut fuel usage
SLT Mobitel tie up with Arpico
Vallibel – most traded stock in Colombo bourse last month-report
FCCISL urges creation of Eastern Development Bank to spur development
Inflation falls in August
Inclusive marketing the way forward - Dr Hans Wijayasuriya
Brandix achieves world first in eco-friendly manufacture
Singer to raise Rs 300 million
Sri Lanka’s Milinda speaks at Asia Business Forum Conference
Sri Lanka, Myanmar help each other - Minister
RAM affirms ratings of LB Finance
PR key to create good first impressions


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2008 | Wijeya Newspapers Ltd.Colombo, Sri Lanka. All Rights Reserved.