Dilshan Wijesekera, Chairman of the Colombo Stock Exchange (CSE), revealed a remarkable turn of events at the Invest Sri Lanka Investors Forum in Chennai on Wednesday. Within the span of a single year, the Sri Lanka stock market underwent an unprecedented transformation, transitioning from the depths of underperformance to claiming the crown of the best-performing stock market. This astonishing feat was emblematic of the market’s resilience and adaptability, according to Wijesekera.
During his address, Wijesekera highlighted the inherent volatility within the market and stressed that such fluctuations present unique opportunities for investors. He attributed a significant portion of Sri Lanka’s economic recovery to India’s instrumental role. India’s timely provision of a USD 2.5 billion credit line and other crucial assistance played a pivotal part in steering Sri Lanka toward its current commendable position.
Wijesekera acknowledged that while Sri Lanka’s stock market may appear modest compared to India’s, its size generates favorable prospects for collaboration between the two nations. Chinthaka Mendis, Director General of the Securities and Exchange Commission (SEC), drew parallels between the achievements of Sri Lanka’s SEC and India’s SEBI, emphasizing their critical roles in fostering market growth.
Mendis noted that Sri Lanka’s financial markets often precede the broader economy, showcasing their ability to rebound resolutely. The dedication of the Sri Lankan government to a comprehensive reform agenda has contributed to recent signs of stability and growth, with the CSE playing an active role in this trajectory.
In unity with the government’s reform agenda, both the SEC and CSE remain committed to supporting and bolstering Sri Lanka’s economic resurgence. As confidence and stability are integral to a flourishing market, the securities market infrastructure has been fortified through proactive measures to prevent misconduct.
Mendis underscored the SEC’s vigilance through regular surveillance and supervision, aimed at swiftly identifying and eliminating any instances of misconduct. With the past behind them, the Sri Lanka stock market is poised to embrace a promising future, characterized by robust growth and enduring optimism.
