CSE ramps up investor confidence

CSE Chairman Dilshan Wirasekara addresses a press briefing while CSE and SEC senior officials look on
PIC BY PRADEEP PATHIRANA 

• CSE chief says as long as investor activity remains fundamentally strong, CSE is not concerned about short-term fluctuations
• Stresses proper systems and controls in place, ensuring decent trading volumes and providing liquidity for any investor to enter or exit market
• Asserts CSE is adopting a top-tier, best-in-class solution that will boost investor confidence
• Gearing up to woo foreign investors at Invest Sri Lanka Capital Market Investor Forum 2025 in Colombo end-March

By Shabiya Ali Ahlam

The Colombo Stock Exchange (CSE) is looking to build on its strong performance last year, when it ranked as the world’s second-best performing stock market in dollar terms, despite the signs of early 2025 market consolidation.

The CSE delivered a 50 percent return on the All Share Price Index in 2024, trailing only Pakistan. Equity fundraising at the exchange amounted to Rs.2.8 billion, while the debt issues raised Rs.94 billion, rights issues Rs.63 billion and private placements Rs.14 billion.

“We did have a very, very good year. And I think the start to this year also has been great. We’ve seen higher turnover levels, average maybe over Rs.3 billion, though this month is a little down,” CSE Chairman Dilshan Wirasekara told journalists this week.

While the turnover has been strong, the overall market movement has remained subdued in early 2025.
“For 2025, the market is probably almost flat but I think that’s again part of the consolidation,” Wirasekara said, adding that as long as investor activity remains fundamentally strong, the CSE is not concerned about the short-term fluctuations.

Asserting that the exchange remains focused on liquidity and accessibility for the investors, he emphasised there is no major worry when the market fluctuates.

“We have the proper systems and controls in place, ensuring decent trading volumes and providing liquidity for any investor to enter or exit the market,” he said.

The key initiatives for 2025 include modernising financial reporting, enhancing surveillance and accelerating digital transformation. The introduction of XBRL-based reporting is expected to streamline corporate disclosures, while an artificial intelligence-driven surveillance system aims to detect the abnormal trading activity.

“We are adopting a top-tier, best-in-class solution that will boost investor confidence,” Wirasekara said.
The CSE is also working on integrating internet banking and digitising trading platforms to improve efficiency and investor access to market data.

In a bid to woo foreign investors, the CSE, in collaboration with the Securities and Exchange Commission (SEC), is gearing up to host the Invest Sri Lanka Capital Market Investor Forum 2025, in Colombo, from March 27 to 28. 

The event will bring together foreign institutional investors, local fund managers and industry leaders, fostering partnerships for growth.

For the first time, the leaders of the Pakistan, Bangladesh and Maldives stock exchanges will participate, sharing insights and expertise. The frontier markets, including Sri Lanka, will also sign a memorandum of understanding to enhance collaboration.

It is the first time that the four frontier markets in the South Asian region have come together to showcase investment opportunities. 

Wirasekara positioned Sri Lanka as the most advanced among its regional peers, offering a compelling case for investment.

“I can tell you that Sri Lanka stands out. I’ve been to all these markets and I can tell you we are not only the cheapest but we are the most advanced out of the four in terms of systems, processes, governance, investor, education, in any matrix that you take,” said Wirasekara.