The Colombo Stock Exchange (CSE) has performed exceptionally well in the past 12 months with the All Share Price Index (ASPI) appreciating more than 55% and the S&P SL 20 Index appreciating more than 44%. In 2021, the Average Daily Turnover of the CSE stands at Rs 4.8 Billion as against Rs. 1.8 Billion in 2020.
Even though the market has performed exceptionally well, foreign investor contribution to the total market turnover is not substantial due to the prevailing Covid 19 pandemic throughout the world. The Securities and Exchange Commission of Sri Lanka (SEC) is of the view that every effort must be made to impress upon foreign investors/ fund managers and diaspora of the compelling value proposition of the Sri Lankan Capital Market. In this sense, the SEC believes capital flows will also act as a catalyst to economic growth and contribute towards increased wealth creation.
As an initial step, the SEC along with the Foreign Ministry and the CSE has commenced a series of virtual meetings to educate staff of Sri Lankan Missions overseas on the growth potential and investment opportunities available in the Capital Market of Sri Lanka. This initiative will enable the respective staff of Missions overseas to promote portfolio investments to Sri Lanka among the investor community in the respective countries and assist the SEC and the CSE in organizing future overseas forums.
P. M. Amza, Additional Secretary Foreign Ministry; the Chairman SEC Viraj Dayaratne PC; Chinthaka Mendis, Director General SEC; Rajeeva Bandaranaike, CEO CSE; Tushara Jayaratne Director External Relations and Capital Market Education SEC; Prabash Wanigatunge Director Surveillance and Capital Market Development SEC; Niroshan Wijesundere Head of Marketing CSE; Nishantha Hewavithana Head of Research and Strategy CSE and senior officials of both the SEC and CSE participated in these initial virtual forums.
“Portfolio investment will act as a catalyst for economic growth and is a top priority for the Government, particularly in the context of post-Covid economic recovery. These forums will offer the Sri Lankan diaspora the opportunity to understand the investment prospects available in the capital market of Sri Lanka as well” remarked Viraj Dayaratne PC, Chairman SEC.
The first in the series was conducted with the participation of Dr. Lakmini Mendis Minister (Commercial) and other senior officials of the High Commission of Sri Lanka in United Kingdom of Great Britain and Northern Ireland. Ms. Sashikala Premawardhane, High Commissioner of Sri Lanka in Singapore, Dharshana M. Perera, Ambassador of Sri Lanka in Sweden and Malraj De Silva, Ambassador of Sri Lanka in Abu Dhabi, United Arab Emirates, Nalinda Wijerathna Consul General of Sri Lanka Dubai & Northern Emirates, M.I.M. Rizvi, Head of Chancery Embassy of Sri Lanka Abu Dhabi and other senior officials from the Foreign Ministry also participated in the virtual forums conducted with the respective Foreign Missions.
The SEC and the Foreign Ministry are in the process of organizing three more virtual presentations with the assistance of Foreign Missions in Tokyo, Washington and Beijing.