Business

CSE gearing to offer ample opportunities for growth and investment in 2023

Published

3 years ago

2023/01/13

By Sanath Nanayakkare

The participation of active retail investors in the Colombo Stock Exchange (CSE) is encouraging. Foreign investors have infused capital at an all-time high in 2022 despite domestic turbulences. With the planned introduction of green bonds, perpetual bonds, high-yielding bonds and flexible rules on speculative trading in the forthcoming quarters, the investor sentiment on the Colombo Stock exchange is likely to see an uptick in 2023. There is a strategy by CSE for 2023/2024 to make CSE a broad-based, seamless platform for high net-worth Individuals, foreign investors, institutional investors and retail investors alike.

This was revealed at a media briefing held by the CSE on Wednesday at Shangri La Colombo. Dilshan Wirasekara, Chairman of the Colombo Stock Exchange said,” Last year was quite challenging for all industries as Sri Lanka went through its worst economic crisis post-independence. However, through the crisis, despite the fact the some of the gains we had made in the previous year had reversed, we were able to perform relatively well in 2022 with some notable achievements. We saw growing confidence of foreign investors in our market. We had all-time high foreign investments in excess of Rs. 50 billion which was quite a significant achievement given that we really couldn’t attract any other foreign investments or foreign currency into the country.

CSE remains profitable along with its subsidiary, the Central Deposit System (CDS). This augurs well for the institution because we are on a solid footing in a financial perspective. This is important because we need to make significant investments into software development, human resources, infrastructure, market education etc. The market itself even though it declined by 30%, we believe that it offers a good upside in the medium term for investors because of low valuations. Our market continues to be one of the cheapest markets out there. I think we are trading at a lower than one time from price to book value and around five times in earnings. So even through these challenges our market valuations are attractive and it is something that we want to make sure the public are aware of, and all stakeholders can capitalize on.”

Rajeeva Bandaranaike. Chief Executive Officer of CSE highlighting key achievements of the organization during 2022 and laying out strategy direction for 2023 said,” We had a 30% decline in All Share Price Index (ASPI) last year. S&P SL 20 index also declined during the year by 7%. However, the good thing about trading was that the market volume was robust even though it was not at the same level as in 2021 which was an exceptional year. The market capitalization remained Rs. 8.8 trillion and the daily average turnover almost touched Rs. 3 billion last year. It was not as good as previous year but was better than most of the past years. The market capitalization as a percentage of GDP was 22% last year which was still higher than some of the previous years. In terms of capital raising, last year was not too good a year. We raised both in terms of debt and equity capital, Rs. 22 billion as against Rs.

123 billion that we raised in 2021. This was partly due to the difficulty we went through as a result of the interest rate environment. The number of new listings was not that great as we had lesser numbers than last year. Notably in 2022, domestic investors were dominating the market accounting for 95% of the volume. But there was somewhat of an increase in foreign flows in 2022- a marginal increase. Retail investors continued to be active in the market and the volumes kept going. If we take the primary market and the secondary market, we had a total net foreign inflow of Rs. 51 billion. This is encouraging news for the market and for the future as well as there are foreign investors looking at our market and are confident in our listed companies to make investments in. One of the reasons why we have a fairly large, active retail base is as a result of the end-to-end digitization process that we have achieved. The Central Counter Party System commissioned last year will help minimize settlement risks to a large extent. In terms of regulation, we completely revamped the entire set of rules of the Stock Exchange to be in conformity with the new SEC Act. In terms of expanding the market, we continued our broad-basing strategy and investor education awareness programmes .We have now conducted over 500 seminars all over the country.”

“We continued to engage with foreign investors, CSE conducted a forum in London last January mainly to engage with existing foreign investors to allay their concerns about Sri Lanka. In September-October 2022, a group of foreign investors visited Sri Lanka on the invitation of a stockbroking firm and met with the President and the governor of the Central Bank. This galvanized their confidence and encouraged them to be active in market.”

“In 2023, we will focus on new product development in debt and equity. We are already working to introduce new products during the course of this year and next year. Our teams are currently working on, for example, to launch green bonds, perpetual bonds, high-yielding bonds etc. and also the secondary trading of corporate debt. A lot work is being done these fronts. In terms of improving risk management, we are hoping to go live with the implementation of the Central Counter Party System. This we will do through the incorporation of another subsidiary of the CSE (CSE Clear). This will be a significant development in Risk management. Also, we will have a new grievance handling procedure to cater to investor complaints. We will form an independent panel – independent of CSE – to hear complaints and investor grievances in order to strengthen the confidence of investors and the market. We will continue to improve the timely informational quality of information disseminated by the listed companies. We are also working on a project where we are trying to standardize the templates for the release of financial results of companies which will be useful for analysts, institutional and foreign investors.”

“In terms of developing market accessibility and convenience to stakeholders, we will continue to expand our branch network and we have planned two more branches during the first half of this year. One in in Panadura (in the next month or two) and another one in Batticaloa, in order to broad base the market because we see a strong retail base. We have seen a notable increase in the number of retail investors over the last three years. A younger section of investors has come in particularly after the enhanced digitization. About 80% of accounts that are opened are by investors who are below 40 years of age. They seem to be replacing the traditional over 55-year old investor base. And with more intensity in our efforts in 2023, we will continue to focus on new listings as well as opportunities for local companies to raise funds in multi-currency or USD denominated capital.” he said.

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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