Business

‘Colombo Stock Exchange booms again’

Published

5 years ago

2021/01/23

Sahan Weerasooriya

by Dr. Darin Gunesekera

International news report the CSE as a top performing stock exchange in 2021. It is heart warming to Sri Lankans.

The headlines cover much. This exchange in its modern form is now 35 years old. Its related Acts and Regulations, 34 years. In these years there have been fairly minor changes as names, etc only. The substantial structure and Regulatory Act have been the same.

The reason is that these were formulated on the basis of economics after some long hands on study. I decided to do it based on economics only. I added the usual cover gloss of current law. The President at the time gave complete freedom. Actually when shortly afterwards I did the Kenyan system, President Moi gave freedom also. Even when I replaced totally what consultants had then just finalized; after all Harvard Consultancy could not complain that they were left behind by Kenya’s own Yale. And after over 30 years except for allowing trade electronically, there is no substantial change.

And, as in Colombo, great success.

This subject, regulating stock exchanges, was begun by William O’Douglas, a Yale Professor. As he himself said later, and his students carried on as tradition, he had no interest in the economics. He thought the US economy well based. He brought in what he later excelled in as a Supreme Court Justice, rights or human rights. That is the old style in Securities Law.

The modern era was actually pioneered by Dr Tan Cheng Theng, about ten years my senior. He was the best student at Harvard Law School and the editor of the Review. When Lee Kwan Yew went on his sabbatical tour of universities, he recruited Tan to do the “SEC” of Singapore. He did so with some brilliant leaps in where there had been darkness before.

I asked him what he considered important, now for him ten years later, as I wished to incorporate the best. He just expressed disgust of the stockbroking and investment banking business. He told me firmly that he was now a “born again” Christian. I understood the sentiment.

But my great uncle had impressed on me that mathematics was at the heart of the courts of law, which is where the People got their law. And mathematics I knew. I had been tasked to take Professor Smale’s ideas on Economics Maths in Law as a teacher briefly at the Yale Law School. So I knew this did not work easily. So I looked for help. My grandfather had been the leading police officer in the British era and anyway the police are the agents of the law. Tyrrel Gunatilleke was then the leading person in the police. I questioned him and he refused to answer but finally relented and told me how he caught criminals. I had the maths, the real maths. That tight construction was possible. And for all securities, including government, which is now the mainstay of the Kenya exchange.

When in Kenya, I was able to reposition the stock exchange so that it had a much greater social force through these constructions and I am very happy that the exchange has climbed to high regard with simultaneous issues in London and that the lead company on the exchange has over 15BUSD in market value.

Colombo, with no change in laws and regulations has the same capacity. But it must address India. Not long after I left CSE, I visited India where I had as an economist some relations with the civil servant in charge. I noticed that his still old fashioned markets had only one third more than Colombo in capital raising as of then. For all India.

This age is actually now coming to an end. It is often said in America that “Finance and Economics is not Rocket Science”. That is true. Elon Musk has discovered it too. Rocket science is still true to WW2 roots. Real Science and tech are far ahead. Any economics student today has to study Maths and stats beyond a rocket scientist.

Three years or so ago I gave a lecture and spent discussion time in NASA talking of my wealth and poverty field. Our field is there in the Beyond Rocket Science.

Not actually because of high speed trading. The youngster who did the largest trading platform, since sold to Chicago, said to me, “Doctor you don’t understand the economics”. But I learnt and now know. The electronics chases the agio, something Dr Tan as a Christian would have found apalling.

The subject is becoming different.

The moment we move to a transactions base rather than stocks, like the competitive agricultural market from Adam Smith demand and supply to rice or wheat in silos, a conceptual change occurs. It is no longer the market for apples. Actually demand and supply, which never existed except as a construct, now de-constructs. Ask yourself, have you ever seen demand or supply prices. No these change all the time. Where is the economist’s price ?Where is there more market volatility in Colombo today ? At the CSE broker’s office or at Keells Veggie counter ? Clearly at Keells. No CSE stockbroker sells tomatoes at 23 today, at 9 in two days time and then 17 in another two days !

Similarly a share which I used to have in my hand and may be photoed and sent to my mother is now some computer entry or slash hashtag, /***/***/*. Actually like a Dialog bill. You just have to go along. But do you want to?

By newspaper accounts, there were some proposals called MCC. The problem unattended to inside that is one long overdue in hitting developing country markets. The problem is that IT, or conversion to IT identification, will hit with anti-commons or gridlock through our systems from the top. Every computer program redefines the finance. And do we need or want it ?

I just cannot believe it. We want only what is good economics. Not consultant fit talk that hides loss of rights, loss of economic status and dumbing down of owners.

A simple example. The new sets of MIT graduates mainly who have the over all skills and others in Russia and UK and EU who are using SMART skill sets are doing work on the ground and becoming Associate Profs and quietening as the next wave comes.

One in East Africa work spoke with me., and also a young man yet of the old consultancy type. The latter was deeply concerned with water and sanitation. He had got aid agencies to build the sanitary seats but was having difficulty with usage. I suggested he look to the specialists in seat usage. He blinked. I just fumbled with my airline ticket. He got the message. He soon had frequent flyer…

The other was an anti-commons gridlock studies student who did a SMART project in the Congo. I had also talked with the Governor of the Congo Ituri Province virtually, this was in Covid time. And he went on at some length on Covid difficulties. I told him that at least he has no one saying his capital is the Ebola Capital anymore. He smacked his head. “I had clean forgotten”. That is the Congo for you. Well this student approached the municipal council of Kivu which bordered Ituri. Kivu is a typical Congo town. Kivu is in the Congo river basin. This council had problems of tables and chairs, no trash vehicles, etc. The tech kid ignored these trivialities, maths variables of the global set after all are what count. He just set up a SMART system. Suddenly Kivu found itself thick in development. The kid got them to be, without saying so, SMART security issuers and so moving at whatever level of money was around. No multi million dollar system.

Trucks in that area still hard link, that is rod link not chain link, to each other so that they can go through the potholes in those muddy roads. Different to Sri Lanka dirt roads but called the same. They fully immerse to over roof top level in the pot hole mud and just roar their engines and roll on.

Now their finance at least is up to the mark in mathematical construction.

It is a diverse world. So far, the old rod-linked economics has seen our stock exchange weather it all. I hope the Colombo Stock Exchange and its regulator all the best in the future.

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Business

Sri Lanka educates women but keeps many out of work, ADB warns

Published

22 hours ago

2026/06/5

Thilina Walpola

Shannon Cowlin - ADB Country Director for Sri Lanka

Sri Lanka has one of the most educated female populations in South Asia, yet only about one in three women participates in the labour force, making female workforce participation among the lowest in the region and leaving a significant source of economic growth untapped.

That paradox took centre stage at a knowledge forum organised by the Asian Development Bank (ADB) in Colombo on June 3, where government officials, labour authorities, academics and private-sector leaders examined the deep-rooted barriers preventing women from fully participating in the economy and explored reforms needed to unlock their economic potential.

Opening the event, ADB Country Director for Sri Lanka Shannon Cowlin said the issue extends beyond gender equality and has become a critical economic challenge for a country seeking sustained growth and inclusive development.

“Empowering women to participate fully in the labour force is not only a matter of equality; it is essential for inclusive economic growth and poverty reduction in Sri Lanka,” she said.

The forum, held under ADB’s Serendipity Knowledge Programme (SKOP), focused on findings from a recent ADB-supported study exploring the factors behind Sri Lanka’s persistently low female labour force participation.

Cowlin noted that despite notable progress in education and human development, Sri Lanka continues to lag behind on measures of gender equality and women’s economic participation. She said multiple studies have shown that the factors shaping women’s labour force participation are layered, interconnected and multidimensional.

According to the study, many women remain concentrated in informal, low-paid and insecure employment with limited access to social protection and few opportunities for career advancement. Social and cultural expectations continue to place primary caregiving responsibilities on women, often restricting their ability to pursue careers or remain in full-time employment.

The lack of affordable childcare services, unequal access to digital skills and technology, concerns over workplace safety, sexual harassment and inadequate transport options were identified as major obstacles preventing women from entering or remaining in the workforce.

“These are complex challenges that require action from all stakeholders – government, development partners, the private sector, civil society and academia,” Cowlin said.

She stressed that improving women’s labour force participation would require more than isolated policy interventions, calling instead for structural transformation, stronger infrastructure and care services, progressive workplace practices and broader societal changes that improve women’s mobility, safety and economic agency.

The event featured a presentation by Professor Dileni Gunawardena of the University of Peradeniya, who shared findings from ADB’s study on female labour force participation, followed by a panel discussion involving representatives from the International Labour Organisation, the Department of Labour, MAS Holdings and John Keells Holdings.

Panelists discussed measures to improve the enabling environment for women, including greater investment in the care economy, expanded childcare facilities, enhanced skills development, creating safe, supportive workplaces and career pathways for upward mobility.

Participants agreed that increasing women’s participation in the workforce is not merely ‘a nice to have’ but an economic necessity, particularly as Sri Lanka seeks to accelerate recovery, boost productivity and achieve more inclusive growth.

The ADB said Sri Lanka’s economic recovery presents a unique opportunity to address long-standing structural barriers facing women and to build a more inclusive labour market that fully utilises the country’s human capital.

By Sanath Nanayakkare

Business

ComBank offers exclusive financial solutions to the ‘Guardians of the Skies’

Published

22 hours ago

2026/06/5

Thilina Walpola

Hasrath Munasinghe, Chief Operating Officer of Commercial Bank and Air Vice Marshal Rajinth Jayawardena, Director General Welfare of the SLAF exchange the agreement in the presence of representatives of the two organisations.

Reinforcing its commitment to those who serve the nation, the Commercial Bank of Ceylon has entered into a Memorandum of Understanding with the Sri Lanka Air Force (SLAF) to introduce a comprehensive suite of concessionary financial facilities for its officers and other ranks.

The partnership, unveiled in a year that marks the 75th anniversary of the Air Force, which was founded in March 1951 as the Royal Ceylon Air Force, reflects a shared recognition of the critical role played by the SLAF as the steadfast ‘Guardians of the skies,’ entrusted with safeguarding the country’s security and sovereignty.

Under the terms of the agreement, Commercial Bank will extend a range of specially tailored financial products to SLAF personnel, including personal loans, leasing facilities, housing loans and credit cards. These facilities will be offered at concessionary interest rates, alongside concessions on documentation charges, enabling Air Force personnel to access financial support on more favourable terms.

The Bank said the initiative is part of its continuing efforts to deliver best-in-class lending solutions that are both accessible and responsive to the diverse needs of its customers. By offering attractive and affordable repayment structures, the scheme is designed to empower SLAF officers and other ranks to meet their personal financial requirements with greater ease and flexibility.

A key feature of the programme is the ability for beneficiaries to align repayments with their income patterns, ensuring that the facilities remain practical and sustainable over the long term. This flexibility, combined with preferential pricing, is expected to make a meaningful difference to the financial wellbeing of Air Force personnel and their families.

Business

Treasury Bill rate hike compounds stock market volatility

Published

22 hours ago

2026/06/5

Thilina Walpola

The CSE was extremely volatile yesterday mainly due to external and internal negative factors.

‘The escalation of the war situation in West Asia and the proposed tariff hike on Sri Lanka’s exports to the US by the Trump administration are worsening Sri Lanka’s economic woes. Further, the government’s decision to increase the Treasury Bill rate has also created some uncertainty in the market, stock analysts said.

The All Share Price Index was up by 249.83 points, while the S and P SL20 rose by 67.61 points. Turnover stood at Rs 2.79 billion with 11 crossings.

Companies that mainly contributed to the turnover by way of crossings were: Chevron Lubricants 1.5 million shares crossed to the tune of Rs 294 million and its shares traded at Rs 196, TJ Lanka 2.9 million shares crossed for Rs 90.8 million; its shares traded at Rs 31, Citizens Development Business Finance 2.5 million shares crossed to the tune of Rs 80.2 million; its shares traded at Rs 32.50.

ACL Cables 634,248 shares crossed for Rs 60.9 million; its shares traded at Rs 96, CCS 438,000 shares crossed to the tune of Rs 57.4 million; its shares traded at Rs 131, Overseas Realties 991,500 shares crossed for Rs 49.6 million; its shares traded at Rs 50 and Access Engineering 653,000 shares crossed to the tune of Rs 49.3 million; its shares sold at Rs 75.50.

In the retail market companies that mainly contributed to the turnover were; Dialog Rs 133 million (3.2 million shares traded), Seylan Bank (Non-Voting) Rs 110 million (1.7 million shares traded), Colombo Dockyard Rs 96.8 million (751,548 shares traded), Ceylinco Holdings (Non-Voting) Rs 77.5 million (516,000 shares traded), Sampath Bank Rs 74.2 million (530,000 shares traded), JKH Rs 74 million (3.7 million shares traded) and LMF Rs 65 million (781,000 shares traded). During the day 123 million share volumes changed hands in 26272 transactions.

It is said that the manufacturing sector, especially Chevron Lubricants and several other firms performed well, while the banking and financial sector performed too.

Yesterday the rupee was quoted flat at Rs 334.50/335.50 to the US dollar in the spot market on, unchanged from the previous day’s close, dealers said, while bond yields were broadly steady.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was Rs 330.50 buying, Rs 339.50 selling; euro was Rs 381.1884 selling, Rs 395.1054 buying; and the pound Rs 442.6620 buying Rs 456.7076 selling.

A bond maturing on 01.08.2030 was quoted at 12.12/20 percent, down from 12.15.25 percent.

A bond maturing on 15.06.2034 was quoted at 13.12/20 percent, down from 13.15/25 percent.

A bond maturing on 15.03.2035 was quoted flat at 13.15/25 percent.

By Hiran H Senewiratne