CSE embarks on listing drive

Hiran H. Senewiratne

She said that with the high interest rates in the country, people are moving into other avenues to invest their money instead of investing in the stock market.

Speaking to the Daily News at a ceremony to felicitate two former Chairmen of the CSE, Eraj Wijesinghe and Rienzie Wijetilleke she said 237 companies are currently listed on the CSE, representing 20 business sectors with a market capitalisation of Rs 884.6 billion which is nearly 30 per cent of the Gross Production of the country.

‘However, agriculture and garments are the largest sectors in the country that are not being represented in

 the market which is a major draw back.

‘The CSE is now in the process of encouraging large companies to be listed in the stock market to create a vibrant marketing the country and also increase the liquidity level,’ she said.

Some of the major sectors including the IT sector, agriculture and garment sectors are not represented in the market, she said.

New listings were disappointing since only two companies, namely, Vallibel Power Erathna Limited and Amana Takaful Limited were listed by way of an introduction.

“Most of the Sri Lankan corporates depend heavily on the banking sector and their retained profits to fund development initiatives. There are significant growth opportunities on the new listing side as there are a number of state-owned companies and family-owned companies that are yet to be tapped in the capital market for funding, Sellahewa said.

She said that the CSE has embarked on a proactive approach to encourage listing by setting up an Issuer Relations Unit to aggressively promote new listings on the CSE amongst companies, which are potential candidates for a listing, she said.

The CSE is forging alliances with stock exchanges in the South Asian Region, facilitating the listing of new products such as index features and overseas Road Shows.