March 20, Colombo (LNW): The Colombo Stock Exchange (CSE) is determined to build on its impressive performance in 2024, when it was ranked as the second-best performing stock market globally in dollar terms, despite early signs of market consolidation in 2025.
Last year, the CSE delivered a remarkable 50 per cent return on the All Share Price Index, trailing only Pakistan in terms of stock market performance. In addition to this success, equity fundraising at the exchange saw a substantial Rs. 2.8 billion, whilst debt issues raised Rs. 94 billion.
Rights issues amounted to Rs. 63 billion, and private placements brought in Rs. 14 billion.
CSE Chairman Dilshan Wirasekara spoke with optimism about the year so far, reflecting on the robust performance in 2024. “We had an exceptional year, and the beginning of 2025 has also been strong. Turnover levels have been higher, averaging over Rs. 3 billion, although this month has seen a slight dip,” Wirasekara told the press.
Whilst turnover has remained strong, the broader market has experienced a more subdued start to 2025. “Looking ahead, the market might remain relatively flat for 2025, but that’s part of the normal consolidation process,” said Wirasekara.
He stressed that as long as investor activity stays fundamentally strong, the exchange is not overly concerned about short-term market fluctuations.
The CSE continues to prioritise liquidity and accessibility for investors. Wirasekara reassured the market that fluctuations are not a cause for concern. “We have the necessary systems and controls in place to ensure steady trading volumes and liquidity, enabling investors to enter or exit the market smoothly,” he explained.
Key initiatives for the CSE this year include modernising financial reporting systems, improving surveillance mechanisms, and accelerating the digital transformation of the exchange.
The introduction of XBRL-based reporting is set to streamline corporate disclosures, whilst an artificial intelligence-powered surveillance system will enhance the ability to detect unusual trading patterns.
“We are investing in a world-class solution to boost investor confidence,” Wirasekara said. Alongside this, the CSE is also working on integrating internet banking into its platform and digitising trading tools to enhance market efficiency and broaden access to investor data.
In a significant move to attract foreign investors, the CSE, in collaboration with the Securities and Exchange Commission (SEC), is preparing for the Invest Sri Lanka Capital Market Investor Forum 2025, to be held in Colombo on March 27 and 28.
The event will bring together foreign institutional investors, local fund managers, and industry leaders to foster partnerships and drive growth within the market.
In an exciting development, the stock exchange leaders of Pakistan, Bangladesh, and the Maldives will also attend the forum for the first time. This will allow them to share insights and expertise, whilst the four frontier markets of South Asia—Sri Lanka, Pakistan, Bangladesh, and the Maldives—will sign a memorandum of understanding to enhance cooperation and collaboration within the region.
Wirasekara positioned Sri Lanka as the most advanced of these frontier markets, highlighting the country’s competitive edge in attracting investment.
“Sri Lanka stands out amongst its regional peers. I’ve visited all these markets, and I can confidently say that we are not only the most affordable but also the most advanced in terms of systems, governance, investor education, and every other key metric,” he concluded.
