The Colombo Stock Exchange (CSE) is expecting around 100 high net-worth investors local and foreign at the forthcoming ‘Invest Sri Lanka 2025’ which is expected to drive growth of the capital market which has been rather bearish in the recent past.
“We will showcase the market potential at the investor forum,” said CSE Chairman Dilshan Wirasekara responding to a media query as to what would the Exchange present to investors at the forum.
The CSE had a positive performance in 2024 with the All Share Price Index, the broad market index and the more liquid S&P SL20 closing the year up.
The Exchange continued its growth momentum into early part of 2025 with the ASPI reaching an all-time high of 16,473.25 in January, driven by investor optimism and positive macroeconomic factors.
However, the CSE acknowledges that overall the market has been flat in the recent times with a low investor appetite.
“Yes, the market has been flat recently but that is part of the consolidation process,” Wirasekera said, adding that Board is more concerned about the market per se rather than its fluctuations.
Hot on the heels of the investor forum briefing early last week the market suffered a fall as investors continued their selling spree.
The benchmark ASPI was down 1.6% or 255 points and the active S&P SL20 by 1.6%. However, the turnover was slightly higher at Rs. 1.7 billion as against Rs. 1.2 billion on Monday.
The investor forum scheduled for March 27th and 28th at the Shangri-La Hotel, Colombo is aimed at promoting investment in the capital market among institutional investors and fund managers based both locally and internationally.
This flagship forum will bring together key stakeholders from Sri Lanka’s capital market ecosystem to showcase the country’s investment potential. It is also aimed at highlighting Sri Lanka as an attractive investment destination in light of recent economic reforms and the upgrading from Fitch Ratings.
The Demutualisation of the Colombo Stock Exchange through the Demutualisation Act which aims at converting the CSE from a company limited by guarantee into a company limited by shares is a primary goal of the 12 committees set up to boost capital market development.
This transformative legislation is designed to enhance governance, transparency, and operational efficiency of the Exchange.
“There is no one opposing demutulaisation of the stock exchange and it something that must take place,” the CSE chief said when asked about the purpose of it.
The Demutualisation Bill seeks to transform the CSE into a company limited by shares to promote better governance and reduce the influence of members-brokers on operational decision-making. On share allocation a 60 and 40 percent dual allocation system is proposed.
While 60 percent of the shares are reserved for the members of the Exchange 40 percent are allocated for the capital market development fund to promote market development.
Corporate debt, education and awareness, digital transformation, strengthening market risk management and introduction of new products are some of the tasks of the other committees set up by the CSE to promote capital market development.
