Norway Pension Fund doubles investment in SL

The Norwegian Government Pension Fund Global, which began investing in Sri Lanka in 2015, has doubled its investment by end 2016, the Norwegian Embassy said yesterday.

The Norwegian Government Pension Fund Global is a sovereign wealth fund, with a mandate to safeguard and administer the Norwegian Government’s revenue from the oil and gas sector. Valued at US$890 billion, the Fund is one of the largest sovereign wealth funds in the world, currently

On appointment by the Norwegian Ministry of Finance, the fund is managed by the Norwegian Central Bank through the Norges Bank Investment Management (NBIM)

In line with the goal to reduce risks, the Sri Lankan investments are diversified across several sectors. The biggest investments have been made in the industrial and financial services sectors holding about 1.3 % of the world’s stocks.

“On appointment by the Norwegian Ministry of Finance, the fund is managed by the Norwegian Central Bank through the Norges Bank Investment Management (NBIM). In 2015, the Norwegian government pension fund made its first investments in Sri Lanka. NBIM has strict criteria for stability and high standards of business conduct when investing in a country.

The fact that NBIM started to invest in Sri Lanka suggests that the Sri Lankan investments opportunities and market standards have improved in the past few years. In 2015, the fund invested US$31 million in Sri Lanka. NBIM has more than doubled its investment in Sri Lanka to US$65 million by end of 2016.

The increase in investments is mostly a result of larger ownership in the companies they had already invested in,” the embassy said in a statement.

In line with the goal to reduce risks, the Sri Lankan investments are diversified across several sectors. The biggest investments have been made in the industrial and financial services sectors with 63% of the total investment.