At the end of 2007, it accounted for about 60 percent of the global sukuk outstanding which now amounts to about USD100 billion. The sukuk market has been an important source of financing for productive investment activities, while for investors, it provides great potential for diversification into new asset classes. The issuance of sukuk has not only become a means of raising financing but it also provides access to a wider base of investors, both Islamic and conventional. The Malaysian bond market has also been liberalised to enable non-resident corporations to raise ringgit and foreign currency denominated funds from our market. International issuers may thus issue multi-currency sukuks or alternatively have the flexibility to swap domestic currency funding into other currencies. Stamp duty exemption for ten years beginning 2007 has been granted on these instruments. There is also withholding tax exemption on income earned by non-residents for investments in ringgit and non-ringgit Islamic securities. With the growing maturity of the market, it has been able to efficiently manage significantly large size issuances. Recently, a Malaysian telecommunications company issued the largest-ever sukuk in the world market that amounted to an equivalent of USD4.7 billion. Though the size was large, the issue was two times oversubscribed, indicating the depth of the market. As an investment destination, the Malaysian capital market offers a wide range of world class products. More than 85 percent of the companies listed on the Stock Exchange are Shariah compliant, representing about 60 percent of total market capitalization.
In implementing the road map, it is vital that all stakeholders in the payment system understands the significance of payment systems, their impact on financial stability and take ownership and leadership. Most central banks at some point or other have been owners, operators, catalysts, overseers and users of the payment system. Over the years, central banks have given up their ownership and  2  BIS Review 66/2006  operator’s role and, in some cases, even the catalyst role. Banks and financial institutions and even the corporates should play an important role in shaping the national payment system in Sri Lanka. Let me conclude now by giving an important message. Payment reforms help to adopt best practices by all stakeholders. With or without payment system reforms, banks and financial institutions should be able to meet their payment obligations. Some of the benefits enjoyed by banks and customers over the years will no longer be there under the CIT system. The public too has to make adjustments in their payment practices and ensure that there are funds in their accounts when cheques are issued. All stakeholders should change their past practices and fall in line with reforms which are aimed at improving facilities. Once again, I thank the Royal Bankers Club for inviting me and extend my good wishes for all its future activities. BIS Review 66/2006  3