Business
CSE chairman focuses on capital-raising and stock market outlook for 2024
The chairman of the Colombo Stock Exchange (CSE), Dilshan Wirasekera, discusses opportunities for capital raising and the stock market outlook for 2024 in the following interview:
Give us an overview of the current market landscape and discuss the CSE’s overall outlook for the year 2024.
We believe the overall outlook of the CSE, for the year 2024 to be a positive one, which I think mirrors the outlook for the country as a whole. There is a significant recovery in economic activity that we see which is now translating into the capital markets and specifically to the Colombo Stock Exchange.
Notably, the turnover levels of the exchange have experienced a significant uptick from what it was at the beginning of the year. An increase from its daily average turnover (ADT) of around Rs 715 million in January, to the current comparatively more stable Rs1.8 billion ADT in March.
I would like to delve into why performance wasn’t as what it used to be, as well as why I believe it will be better this time around. The first, and arguably most significant reason being because the country is currently in a default status. As it is in default and awaiting finalisation of external creditors for the debt restructuring, we are seeing very little foreign activity, and therefore turnover is still dominated by domestic activity. As of March 28th, we are currently at 74.91% local 25.09% foreign participation to turnover. A stark shift from previous years such as in 2018, where we were able to witness a 50-50 foreign to local contribution to the turnover.
We are optimistic that as the external debt restructuring is forecasted to be finalised before June, we will then be able to shed our default status. Portfolio funds can then allocate investments into Sri Lanka, and that will drive an increase of foreign activity from its current status of 25.09%.
Second, the domestic economy has had a negative growth of 7.8% in 2022, followed by a negative growth of 2.3% for 2023. However, the last quarter for 2023 shows 4.5% growth for that quarter. Therefore, looking ahead to 2024, we are optimistic that a growth of 3 – 5 percent will be achieved by the economy. That will undoubtedly result in a lot more activity.
Next, interest rates have been prohibitive for investments. Previously, fixed income yields were over 20%, and people tend to avoid risky asset classes like equity regardless of whether the returns could be rewarding. The Central Bank has reduced policy rates, and as the AWPLR downward trajectory appears to be coming closer to 10%, which will primarily expect to stimulate credit growth; ultimately, people will consider investing in the stock market due to low interest rates.
Finally, the performance of the current market landscape hasn’t been very impressive since, the market yet remains undervalued. The current market PE is 10.27 and the price-to-book value is at 1.02. However, historically we have had our market trade at multiples of 17 times price earnings, one and a half times book value. These are all the reasons that would then further result in the valuations being re-rated.
Overall, we are quite optimistic that activity and turnover will increase driving yields and the market will perform well for the year 2024 as economic conditions continue to improve.
Do you foresee a demand for capital raising via the stock market in 2024?
Yes, there is a strong anticipation of increased demand for capital raising via the stock market in 2024. Several factors contribute to this optimistic outlook:
Conducive Market Conditions: The market environment is seen as favourable for companies to raise capital. With expectations of improved valuations, companies can achieve reasonable multiples when raising equity, making it an opportune time for capital infusion.
Investor Appetite: As investor activity increases, there is a growing appetite for initial public offerings (IPOs). This increased demand from investors creates a conducive environment for companies seeking to raise capital through the stock market.
Introduction of New Products: The introduction of new financial instruments such as sustainable bonds, infrastructure bonds, and sukuks provides alternative fundraising options for organizations. This diversification of offerings is expected to attract companies looking to capitalize on these new instruments, thereby driving more listings and investor activity.
Broad basing via Introducing Multiple Listing Boards: The Colombo Stock Exchange offers three listing boards—the Main Board, Diri Savi Board, and Empower Board— catering to local corporations of all sizes. These boards serve as gateways for companies to obtain listings and access capital markets, providing a range of options to suit different company profiles and capital-raising needs. Further, the Colombo Stock Exchange has introduced the Catalist Board exclusively aimed at accommodating listings of State-Owned Enterprises anticipated in the future. Additionally, to assist foreign-listed companies seeking dual listing status in Sri Lanka, the CSE has established a specialized board called the Multi Currency Board.
The CSE has strengthened its listing function by allocating resources with focus on issuer relations activities, including actively engaging with companies in creating awareness and addressing misconceptions, and streamlining its processes to facilitate listings.
Is there opportunity to raise capital in foreign currency for local companies?
Yes, there is indeed an opportunity for local companies to raise capital in foreign currency through the Colombo Stock Exchange (CSE). The framework established by the CSE allows listed entities to issue foreign currency denominated equity, subject to certain eligibility criteria and regulatory requirements.
One of the key eligibility requirements is that 50% of the company’s revenues should be in the form of foreign currency, with a minimum threshold of USD 5 million over a period of three years. Additionally, these issuances are classified as a different class of shares and are available exclusively to non-residents in the country.
Furthermore, companies that raise foreign currency through these issuances are required to allocate 40% of the proceeds to local requirements, while the remaining 60% can be invested outside Sri Lanka.
Despite the potential benefits of such listings, including access to a broader pool of investors and diversification of funding sources, there have been no such listings so far. This can be attributed to various factors, including the prevailing economic conditions, exchange rate volatility, and regulatory restrictions.
However, there is optimism within the CSE and the business community that these listings will gain traction in the future. Improvements in the local and global economic climate, along with the increasing demand for capital among exporters and other eligible entities, are expected to drive interest in foreign currency denominated equity issuances.
As conditions continue to evolve and stabilize, it is anticipated that more local companies will explore the opportunity to raise capital in foreign currency through the CSE, contributing to the growth and development of Sri Lanka’s capital markets.
Overall, this partnership depicts the commitment of both the CSE and USAID to foster the development of SMEs and promote inclusive economic growth. By providing SMEs with the necessary resources, guidance, and incentives, this initiative aims to empower them to harness the capital markets as a means of realizing their full potential and contributing to the broader prosperity of Sri Lanka’s economy.
Janashakthi Life, the flagship company of JXG (Janashakthi Group), delivered a strong first-half performance in 2026, with Gross Written Premiums (GWP) increasing by 36% year-on-year to Rs. 5.11 billion. The Company’s growth significantly outpaced the industry’s 20.8% growth during the period, reflecting continued demand for its life insurance solutions and progress in expanding its customer base and strengthening its market presence.
The Company’s balance sheet also continued to expand, with total assets increasing to Rs. 41.14 billion as at Q2 2026, compared to Rs. 40.37 billion at the end of 2025. The growth reflects the continued scale of the business and provides a stronger platform to serve an expanding policyholder base while investing in the capabilities required to support its next phase of growth.
During the first half, Janashakthi Life paid Rs. 2.24 billion in claims and benefits, reaffirming its commitment to supporting policyholders when it matters most. These payments provide essential financial support at critical moments in the lives of individuals and families, highlighting the vital role of life insurance in protecting their financial wellbeing and long-term security.
The Company remained profitable during the period, recording Profit Before Tax (PBT) of Rs. 271 million, excluding the surplus transfer for the period. With the declaration of the surplus transfer, profitability is expected to be substantially higher. Janashakthi Life remains focused on strengthening earnings quality, managing costs effectively, and translating business growth into sustained improvements in overall performance.
Annika Senanayake, Chairperson of Janashakthi Insurance PLC, said, “The performance in the first half reflects the strength of Janashakthi Life’s business and the opportunities that exist to further develop the life insurance market in Sri Lanka. We remain focused on building a business that combines sustainable growth with sound fundamentals, while making insurance more accessible to a wider segment of the population. As part of JXG, Janashakthi Life is well positioned to leverage the Group’s financial services ecosystem and continue strengthening its position in the market.”
Ravi Liyanage, Director/CEO of Janashakthi Insurance PLC, said, “The first half delivered strong growth across key areas of the business, with GWP increasing 36% to Rs. 5.11 billion. In all key segments, namely regular business, group life business and single premium business, the Company has outperformed the industry significantly, demonstrating its market challenger behaviour. The Company is strengthening its stability, crossing LKR 41 billion in assets under management. Our focus now is on building on this momentum through stronger distribution, improved productivity and disciplined cost management, while continuing to enhance the customer experience by providing an unmatched service throughout the lifespan of the service contract.”
The first-half performance provides a strong platform for Janashakthi Life to build on its growth plans for the remainder of the year. The Company will continue to focus on expanding access to life insurance, strengthening customer relationships and developing solutions that respond to changing financial priorities.
With GWP growth significantly ahead of the industry, a growing asset base and increased claims and benefits delivered to policyholders, Janashakthi Life continues to build scale across its core operations. The Company remains focused on disciplined growth, stronger execution and improving the quality of its performance, with the objective of creating sustainable value for policyholders, shareholders and the wider business.
Further reinforcing its strong market standing, Janashakthi Life was recognised among Sri Lanka’s 50 Best Workplaces™ for 2026 by Great Place To Work® Sri Lanka and was also named among Brand Finance’s Sri Lanka 100 Most Valuable Brands. These recognitions reflect the Company’s continued focus on building a strong brand, delivering value to customers and creating a high-performing organisation. (JXG)
Major Japanese business group sees long-term potential in Hunas Holdings as the two organisations explore new opportunities for growth in Sri Lanka
Hunas Holdings PLC is entering a new phase of growth through a collaborative partnership with CCH Co., Ltd. (CCH INC.), a major Tokyo-based business group with experience across business process outsourcing (BPO), in-house services, investment, mergers and acquisitions, and business development.
The partnership follows a period in which Hunas Holdings maintained a measured approach to new investments amid volatile market conditions, focusing on identifying the right opportunities and international relationships capable of creating sustainable long-term value.
Founded in Japan in 2008, CCH has grown into a significant and diversified business group with interests across multiple industries. Its approach combines investment with M&A, business development and operational expertise, enabling the company to play an active role in the businesses and markets it enters.
For CCH, the partnership represents an opportunity to bring this experience to Sri Lanka through Hunas Holdings, an established local group with a strong platform and long-term growth ambitions.
Yoshihiko Tanabe, Director of CCH Co., Ltd., said: “Through our discussions with Hunas Holdings, we see a company with strong foundations, local expertise and a clear ambition for growth. We believe there is meaningful potential in bringing the strengths of CCH and Hunas Holdings together. I am excited about this partnership, and particularly about some of the projects and opportunities we are already exploring together. There is much to look forward to soon”
For Hunas Holdings, the collaboration marks a renewed chapter of investment and international partnership, while for CCH, it reflects confidence in Hunas Holdings and the opportunities presented by the Sri Lankan market.
Dr. Harini Amarasuriya, Prime Minister of Sri Lanka, will deliver the keynote address at a special session on day 2 of the Sri Lanka Economic & Investment Summit 2026 organised by The Ceylon Chamber of Commerce, titled “Nation Building in the Digital Age”, on 13 October 2026 at the Shangri-La Colombo.
The session will examine how Sri Lanka can use artificial intelligence, digital transformation, innovation and education to accelerate economic growth, improve productivity and build a knowledge-driven economy. As technology reshapes industries and the nature of work, the discussion will focus on how Sri Lanka can develop the capabilities needed to remain competitive and create opportunities for future generations.
The Prime Minister will be joined by Waruna Sri Dhanapala, Secretary, Ministry of Digital Economy; Prof. Roshan Ragel, Senior Lecturer in Computer Engineering, University of Peradeniya; and Sanjay Shah, Founder and CEO, Elevante AI, who together will add perspectives from government, academia, and industry. Vinod Hirdaramani, Chairman of Hirdaramani Group and Deputy Vice Chairperson of The Ceylon Chamber of Commerce, will moderate the session.
The discussion will look at the opportunities and challenges presented by emerging technologies, including artificial intelligence and automation, and their potential to transform industries and create new areas of economic activity. It will also consider the role of digitalisation in improving public services and supporting entrepreneurship.
Education and skills development will be another important part of the conversation, particularly as the demand for new capabilities grows alongside technological change. The panel will consider how Sri Lanka can prepare its workforce for future jobs while developing an environment that supports innovation and technology-led businesses.
The session will also look beyond technology itself to the wider conditions needed for a digital economy to grow. Policy, investment, infrastructure, education and collaboration between government, industry and academia will all have a role in determining how effectively Sri Lanka can turn technological change into economic opportunity.
Held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy,” SLEIS 2026 will offer perspectives from senior policymakers, business leaders, investors and international experts over two days of discussions on Sri Lanka’s economic direction, investment opportunities and the reforms needed to support future growth.
Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).
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