Sri Lanka’s CSE, SEC to hold investor forum to woo foreign investors
Daily FT: The ‘Invest Sri Lanka’ Capital Market Investor Forum 2025, hosted by the Colombo Stock Exchange (CSE) in collaboration with the Securities and Exchange Commission of Sri Lanka (SEC) and the Stockbroker industry is scheduled to take place on 27 and 28 March at Shangri-La, Colombo.
The forum will feature high-ranking officials, including Government policy makers, regulators, representatives of leading listed companies and stockbroker firms, and will present a unified vision of Sri Lanka’s potential as a dynamic investment hub.
The forum will bring together key stakeholders from local and international markets, fostering connections and partnerships that drive mutual growth.
This includes foreign institutional investors and fund managers, local fund managers and institutional investors as well as industry leaders, creating a platform for meaningful dialogue and collaboration.
Sri Lanka’s economy is undergoing a commendable revival, positioning its capital market as an attractive diversification option for global investors and offers a unique opportunity to be a part of the country’s growth story. YoY returns for 2023 and 2024 have been in positive territory with the All-Share Price Index (ASPI) and S&P SL20 providing returns of 25.50% and 16.42% respectively in 2023, and the ASPI by 49.66% and the S&P SL20 by 58.46% in 2024. The trend in indices have continued into 2025 with both indices in positive range with significant improvement in market volumes and turnover particularly over the last two years. In 2024, the market also recorded a positive net inflow of $ 66.5 million, alongside the highest capital raised in a single year reaching $ 568.61 million.
The stability and success achieved on the economic front coupled with the political stability in the country has reinforced investor confidence. This administration’s commitment to reducing state expenditure, advancing external debt restructuring, adhering to the IMF reform program amidst currency stability and a low-interest rate environment has bolstered Sri Lanka’s economic recovery and stock market growth.
The conclusion of Sri Lanka’s international debt restructuring has improved the sovereign credit rating, reducing default risk and enhancing confidence in new issuances. Furthermore, with a market P/E of 8.7x, the Sri Lankan stock market stands out as an attractive option relative to more expensive peer markets. Against the backdrop of significant reforms and positive economic developments, the Sri Lankan capital market is conducive to attracting investment and creating opportunities for institutional investors and fund managers globally.
Participants will gain access to a series of sessions offering in-depth insights into Sri Lanka’s capital markets, economic outlook, and investment opportunities including access to engage with Sri Lanka’s top corporates. These sessions will highlight the resilience and potential of the market, showcasing recent policy reforms, improved infrastructure, and a robust ecosystem that supports sustainable investment.
OSL take:
With Sri Lanka’s overall economy on an expansion path, the next step for Sri Lankan authorities is to attract more foreign businesses/investors to the country. The country’s target of achieving regional hub status supported by Sri Lanka’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with other countries have added to the country’s attraction as an emerging business destination. The growing business potential in Sri Lanka is further evident by the interest shown by large economies like China, who have featured the country prominently in the Belt and Road Initiative (BRI), to do business in the country. Foreign businesses/investors could therefore confidently explore the expanding business/investment opportunities in Sri Lanka while also looking at setting up bases in the country through local collaborations in order to further expand operations in Sri Lanka as well as regionally.
| Article Code : | VBS/AT/20250314/Z_4 |