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The Colombo Stock Exchange (CSE) (Sinhala: කොළඹ කොටස් වෙළඳපොල, romanized: Kolamba kotas velandapola; Tamil: கொழும்பு பங்கு பரிவர்த்தனை) is the main stock exchange in Sri Lanka. It is one of the exchanges in South Asia, providing an electronic trading platform. The headquarters of the CSE have been located at the World Trade Center (Colombo) Towers in Colombo since 1995 and it also has branches across the country in Kandy, Jaffna, Negombo, Matara, Kurunegala, Anuradhapura and Ratnapura .[1] The Colombo Stock Exchange (CSE) has 296 companies representing 20 business sectors as at 3 August 2015, with a Market Capitalization of Rs. 3115.52 Bn.

Colombo Stock Exchange
කොළඹ කොටස් වෙළඳපොල
கொழும்பு பங்கு பரிவர்த்தனை
CSE logo
TypeStock Exchange
LocationColombo, Sri Lanka
Founded1985
Key peopleMr. Rajeeva Bandaranaike (CEO)
CurrencyLKR
No. of listings298 companies representing 20 business sectors (as at 18 January 2018)
Market capRs 2,355.7 billion
IndicesAll Share Price Index (ASPI)
S&P Sri Lanka 20 Index (S&P SL20)
Websitewww.cse.lk

HistoryEdit

Share trading in Sri Lanka was initiated in 1896 under Share Brokers Association (SBA). In 1904 SBA was renamed as Colombo Brokers' Association. They started auctioning shares in an open land. Later a competitor evolved, Stock Brokers Association and in 1985 Colombo Brockers & Stock Brokers merged and formed Colombo Securities Exchange.[2]

The establishment of a formal stock exchange took place in 1985 with the incorporation of the Colombo Stock Exchange (CSE), which took over the Stock Market from the Colombo Share Brokers Association. It currently has a membership of 15 institutions, all of which are licensed to operate as stockbrokers.[2]

In 1990, the business was renamed as Colombo Stock Exchange. CSE introduced Central Depository System and clearing was automated by that. In 1995 CSE headquarters was opened at WTC, Colombo.[2]

Milanka Price Index was introduce in 1999 and several branches were opened within the country. The regional branches include Kandy, Jaffna, Anuradhapura, Kurunegala, Matara, Ratnapura and Ambalantota. https://www.cse.lk/corporate

Current statusEdit

FinancialEdit

The Colombo Stock Exchange (CSE) has 291 companies representing 20 business sectors as at 30 June 2019, with a Market Capitalization of Rs. 2,523.38 Bn.

There are currently two indices in the Colombo Stock Exchange;

  1. The All Share Price Index (ASPI)
  2. The S&P Sri Lanka 20 Index (S&P SL20)

(Milanka Price Index - MPI was abolished after 30/12/2012)

Sustainable Stock ExchangeEdit

On 24 September 2015, Colombo Stock Exchange declared its entry in to the United Nations Sustainable Stock Exchanges Initiative and its intentions to promote corporate, Social and Governance (ESG) issues, with the support of the local network of the United Nations Global Compact.[3]

Trading sessionEdit

The exchange works only in weekdays except national holidays in sri lanka. The market trading starts at 9.30am and ends in 2.30pm.

TechnologyEdit

The CSE operates 2 main systems:

  1. The Central Depository System (CDS)
  2. Automated Trading System (ATS)

(After implementing ATS version-7, The Debt Securities Trading System (DEX) was abolished since ATS-7 provides a platform for both Debt & Equity)

The automation of the Exchange commenced in 1991 with the installation of a central depository and an electronic clearing and settlement system for share transactions. The trading activity was automated with the installation of the Automated Trading System (ATS) in 1997.

The CSE is currently in the process of introducing a debt securities trading system for trading of fixed income securities.

As a modern exchange, the CSE now offers an "order-driven trading platform" for securities trading - including shares, corporate debt securities and government debt securities.

AffiliationEdit

The CSE was selected as a member of the World Federation of Exchanges in October 1998 and also was the first Exchange in the South Asian Region to obtain membership. The CSE is the 52nd Exchange to have been elected to membership of the Federation.[4]

  • South Asian Federation of Exchanges

The CSE became a founder member of the SAFE in January 2000, and is currently the Chairman of the Association. SAFE consists of 17 Exchanges from India, Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan. Its primary objectives are to encourage cooperation among its members in order to promote the development of their individual securities markets, to develop an integrated regional stock trading system, and to offer listing and trading opportunities for securities issued in the region.[4]

The CSE joined Sustainable Stock Exchanges Initiative in September 2015.[4]

Foreign investorsEdit

Companies listed on the CSE have seen a large increase in foreign investment following the winning of 30 year old civil war by the Sri Lankan Government.

Foreign investment in the stock market is freely permitted except in the case of a few companies where there are certain restrictions imposed. Investment in shares in Sri Lanka and repatriation of proceeds take place through Share Investment External Rupee Accounts (SIERA) opened with licensed commercial banks. Income from investments such as interest, dividends and profit realized from such investments are not subject to Exchange Control Regulations by the Sri Lankan Government.

Post ceasefire agreement boomEdit

After witnessing mediocre performance throughout the 1990s mainly due to the Sri Lankan Civil War, the ceasefire agreement signed in 2001 saw unprecedented growth in the both indices of the CSE. The All Share Price Index, which was hovering around the 500 mark in August 2001, has surpassed the 2000 mark after that.[citation needed]

This led CSE to be consistently dubbed as one of the best performing markets in the world. As of 2005 the CSE had recorded a consistent annual growth of over 30% in the All Share Price Index (ASPI) for the previous three years. It surpassed that in 2006, with the ASPI growing by 41.6%,[5] and the MPI growing by 51.4%[6] during the calendar year. CSE recorded the highest point in history on 26 February 2007. Milanka Price Index (MPI) reached 4,214.8 points on that day.[7]

Buoyed by improved investor confidence due to positive political developments and strong corporate results[5] the CSE continued to achieve strong growth in 2007, as the ASPI surged passed the 3,000 mark for the first time in its history on February 13,[5][6][8] reaching a record high for the seventh consecutive day.[6] The CSE has also recorded an average daily turnover of Rs. 776.8 million for 2007.[8]

Post war boomEdit

After the end of the Sri Lankan Civil War on 18 May 2009, CSE indexes increased rapidly creating new records. Market capitalization at the Colombo Stock Exchange reached record high on 6 October 2009 as it reached the Rs. 1 trillion mark for the first time in Sri Lanka’s history.[9] All Share Price Index (ASPI) broke the record for its previous high by marking 3549.27 points on 11 January 2010.[10] CSE was the best performing stock exchange in the world in 2009 as it jumped 125.2 percent during that year.[11]

See alsoEdit

CSE in the newsEdit

Effective from 18 June2018 the stocks in the S&P Sri Lanka 20 in alphabetical order are as follows.

COMPANY TICKER
Access Engineering PLC AEL.N0000
Aitken Spence PLC SPEN.N0000
Ceylinco Insurance PLC CINS.N0000
Chevron Lubricants Lanka PLC LLUB.N0000
Commercial Bank of Ceylon PLC COMB.N0000
Commercial Bank of Ceylon PLC Non-Voting COMB.X0000
DFCC Bank PLC DFCC.N0000
Dialog Axiata PLC DIAL.N0000
Hatton National Bank PLC HNB.N0000
Hatton National Bank PLC Non-Voting HNB.X0000
Hemas Holdings PLC HHL.N0000
John Keells Holdings PLC JKH.N0000
Lanka Orix Leasing Company PLC LOLC.N0000
Melstacorp PLC MELS.N0000
National Development Bank PLC NDB.N0000
People's Leasing & Finance PLC PLC.N0000
Richard Pieris & Company PLC RICH.N0000
Sampath Bank PLC SAMP.N0000
Softlogic Holdings PLC SHL.N0000
Teejay Lanka PLC TJL.N0000
Tokyo Cement Company (Lanka) PLC TKYO.N0000
Tokyo Cement Company (Lanka) PLC Non-Voting TKYO.X0000
Vallibel One PLC VONE.N0000

(COLOMBO, June 14, 2018) [12]

Colombo Stock Exchange has transferred nine companies to their Watch List with effect from today due to non-submission of interim financial statements for the period ended 31 March 2018.[13]

The Colombo Stock Exchange (CSE) made a statement that investment flows from the Scandinavian region to Sri Lankan stocks have made a noteworthy improvement in recent years, where inward investments have grown by 39 percent per annum (CAGR) since 2013. According to a CSE statement, Scandinavian countries have collectively invested Rs.8.2 billion in local equities year-to-date, which amounted to 23 percent of the total foreign purchases during the period.[14][15]

The National Stock Exchange (NSE) and the Colombo Stock Exchange (CSE) signed an agreement to explore opportunities to work together and foster a strategic relationship.The agreement is intended for cooperation on the exchange of information and expertise and also paves the way for the NSE to play a consultative role in a number of strategic initiatives implemented by the CSE, including in new product development and exchange operations.[16]

The Colombo Stock Exchange launched a guide for listed Sri Lankan companies to help them address environmental, social and governance (ESG) factors in their capital market communications.[17]

ReferencesEdit

  1. ^ Sri Lanka's stock exchange opens new regional branch Archived 2007-08-06 at the Wayback Machine, Lanka Business Online
  2. ^ a b c "Colombo Stock Exchange - Milestone". www.cse.lk. Archived from the original on 30 May 2018. Retrieved 30 May 2018.
  3. ^ Colombo Stock Exchange (28 September 2015). "CSE joins United Nations SSE Initiative" (PDF). Colombo, Sri Lanka. Archived from the original (PDF) on 6 October 2015. Retrieved 4 October 2014.
  4. ^ a b c "Affiliation - Colombo Stock Exchange". www.cse.lk. Archived from the original on 30 May 2018. Retrieved 30 May 2018.
  5. ^ a b c "Historic day for Colombo Bourse". The Daily News. 14 February 2006. Archived from the original on 16 February 2007. Retrieved 17 February 2007.
  6. ^ a b c "CSE creates history - ASPI crosses 3,000". The Daily Mirror. 14 February 2006.
  7. ^ Colombo Stock Exchange broke several records in 2009
  8. ^ a b "Sri Lanka's benchmark stock index close above 3000 points". Lanka Business Online. 13 February 2006. Archived from the original on 27 September 2007. Retrieved 17 February 2007.
  9. ^ Colombo Stock Exchange Reached Record High
  10. ^ Sri Lanka shares hit new peak on heavy local buying
  11. ^ Sri Lanka stocks at fresh peak after doubling in 2009
  12. ^ "Melstacorp, Softlogic, Vallibel, Ceylinco in S&P Sri Lanka 20 Index". Economy Next. 14 June 2018. Retrieved 19 June 2018.
  13. ^ "CSE transfers companies to Watch List due to non-submission of reports". LBO. 7 June 2018. Retrieved 15 June 2018.
  14. ^ "Nordic interest on Lankan stocks growing, says CSE". Daily Mirror. 30 May 2018. Retrieved 11 June 2018.
  15. ^ "Sri Lankan equities attracts wider international audience-CSE". Sunday Times. 29 May 2018. Retrieved 14 June 2018.
  16. ^ "NSE and Colombo Stock Exchange ink pact to collaborate". 3 April 2018. Retrieved 15 May 2018.
  17. ^ "Sri Lanka stock exchange launches sustainability guide for listed firms". Economy Next. 16 March 2018. Retrieved 19 April 2018.

External linksEdit