Buoyant capital market

Charumini de Silva

Securities and Exchange Commission (SEC) Chairperson Indrani Sugathadasa said the Colombo Stock Exchange (CSE) market capitalization contribution to the Gross Domestic Product (GDP) increased from 22 percent to 42 percent.

The CSE is hurdling one after the other benchmarking as one of the best performing markets in the world.

Speaking at the breakfast meeting to honour the visit of International Organization of Securities Commissions (IOSCO) Chairperson Jane Diplock organised by the SEC she said all indices are performing impressively.

The SEC introduced mixed directives to encourage long-term investment and to reduce market volatility while inspiring to have a fair and transparent market.

“The SEC is working on demutualizing the CSE gradually. The SEC is warranted as the regulator to be more vigilant and it is closely watching the market activities to ensure fair, transparent and a sustainable capital market. We hope that the IOSCO will support Sri Lanka in the future endeavours too,” Sugathadasa said. International Organization of Securities Commissions Chairperson Jane Diplock said during the post war scenario there has been a marvellous improvement.

The strength of the CSE is evident through the buoyant capital market from 2005 up-to-date.

“The economic environment, confidence and the optimism have grown remarkably”.

“The corporate governance is vital. It is important that the regulators must encourage ethical behaviour to smart companies. I think it is a really powerful challenge for Sri Lanka to be the corporate governance role model to the world market”, she said.

The SEC of Sri Lanka as the regulator and the CSE is much enthusiastic of inculcating good governance, which will be a hallmark.

This will also provide international recognition and help to develop the country’s economy immensely,” Diplock said.