The Colombo Stock Exchange (CSE) remains confident about its market outlook despite early signs of consolidation in 2025, following a strong performance last year, where it was ranked the world’s second-best performing stock market in dollar terms.
In 2024, the All Share Price Index (ASPI) delivered a 50% return, second only to Pakistan. The CSE facilitated fundraising of Rs.2.8 billion in equity, Rs.94 billion in debt issues, Rs.63 billion in rights issues, and Rs.14 billion in private placements.
CSE Chairman Dilshan Wirasekara acknowledged that turnover levels at the start of 2025 have remained high, averaging over Rs.3 billion, although there has been a slight decline this month.
“For 2025, the market is almost flat, but that’s part of the consolidation. As long as investor activity remains fundamentally strong, we are not concerned about short-term fluctuations,” he said.
Focus on Liquidity, Systems, and Digital Transformation
Wirasekara stressed that the CSE has robust systems and controls in place to maintain market liquidity and ensure smooth investor access.
“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 noted.
The CSE’s key initiatives for 2025 include:
• Modernising financial reporting with XBRL-based automation to improve corporate disclosures.
• Enhancing market surveillance using artificial intelligence (AI) to detect unusual trading activity.
• Accelerating digital transformation by integrating internet banking and further digitising trading platforms.
“We are adopting a top-tier, best-in-class solution that will boost investor confidence,” Wirasekara asserted.
Invest Sri Lanka Forum to Attract Foreign Investors
The CSE, in collaboration with the Securities and Exchange Commission (SEC), is preparing to host the Invest Sri Lanka Capital Market Investor Forum 2025 from 27–28 March in Colombo. The event aims to attract foreign institutional investors, local fund managers, and industry leaders, fostering regional and global investment partnerships.
For the first time, leaders from the Pakistan, Bangladesh, and Maldives stock exchanges will participate, sharing insights and signing a memorandum of understanding (MoU) to enhance collaboration among South Asian frontier markets.
Positioning Sri Lanka as the most advanced among its regional peers, Wirasekara highlighted:
“I’ve been to all these markets, and I can tell you that Sri Lanka is not only the cheapest but also the most advanced in terms of systems, processes, governance, investor education—by any measure you take.”
This initiative is expected to enhance foreign investor confidence and showcase Sri Lanka’s capital market potential on the global stage.
