Although this trio of major challenges have now been effectively addressed through the application of unconventional wisdom, Sri Lankan authorities realize that they must continue to practice innovation in order to reach their long term goals. At the same time, Sri Lanka must also preserve the country’s peaceful environment and political stability, in order to make these outcomes sustainable. In this regard, Sri Lanka is now facing a fresh challenge, where human rights advocates of the US and the West, are focusing on the last phases of the 30 year war on terror, and raising certain human rights issues and prescribing various “foreign” solutions to those perceived issues. In this situation too, just as conventional economists did not appreciate the practical benefits of the innovative economic strategies, theoretical human rights activists also do not seem to appreciate Sri Lanka’s strategy of ushering long lasting peace to its communities in a practical and effective manner, without inflicting further anxiety, pain and anguish on the people. Sri Lanka is a vibrant, practising democracy and a country with a 2500 year history, emerging out of a long and bloody conflict. It has the maturity and the ability to deal with issues confronting the country, in accordance with its own systems, culture and democratic traditions. So far, all Sri Lankans have been able to enjoy peace, by practising a hybrid system of restorative justice and rapid economic and political development.

This will cover companies incorporated in Singapore, which hold as their subsidiary or subsidiaries, banks, insurance companies, or both, but does not itself conduct banking or insurance business. Third, regulation of the fund management industry. All fund management companies will have to meet the enhanced competency, business conduct, and capital requirements by August. Those with assets under management greater than $ will have to be licensed, while those below this threshold may operate under the “Registered Fund Management Company’ regime, which will replace the existing “Exempt Fund Manager” regime. I will now touch on the performance and development of Singapore as a financial centre. Financial centre: well-positioned for growth Singapore financial sector activity subdued in weak global environment, but longer-term prospects remain bright Singapore’s financial sector contracted on a sequential basis for two consecutive quarters in Q4 2011 and Q1 2012, amidst heightened risk aversion in global financial markets. We expect financial services activity to remain subdued given uncertainty and weakness in the global economic environment. Activities such as trading – which are very sensitive to sentiment – bore the brunt of adjustment. But other activities – tied to Asian demand – have remained resilient. They are well-positioned for growth. Asia’s demand for financial services will continue to be driven by rapid urbanisation, the demographics of a growing middle-class, and the rise of regional multinational companies in need of funding. Let me highlight a few of these growth areas. First, asset management. As at end-2011, total assets managed by Singapore-based asset managers amounted to $ trillion.