COLOMBO, 07 May, 2021 (TON): The Securities and Exchange Commission of Sri Lanka (SEC) is of the view that every effort must be made to impress upon foreign investors/ fund managers and diaspora of the compelling value proposition of the Sri Lankan Capital Market.

In this sense, the SEC believes capital flows will also act as a catalyst to economic growth and contribute towards increased wealth creation.

In the past 12 months the Colombo Stock Exchange (CSE) has performed exceptionally well with the All Share Price Index (ASPI) appreciating more than 55% and the S&P SL 20 Index appreciating more than 44%.

The SEC along with the Foreign Ministry and the CSE has commenced a series of virtual meetings to educate staff of Sri Lankan Missions overseas on the growth potential and investment opportunities available in the Capital Market of Sri Lanka. This initiative will enable the respective staff of Missions overseas to promote portfolio investments to Sri Lanka among the investor community in the respective countries and assist the SEC and the CSE in organizing future overseas forums.

"Portfolio investment will act as a catalyst for economic growth and is a top priority for the Government, particularly in the context of post- COVID economic recovery. These forums will offer the Sri Lankan diaspora the opportunity to understand the investment prospects available in the capital market of Sri Lanka as well” remarked Viraj Dayaratne PC, Chairman SEC.

The Average Daily Turnover of the CSE in 2021 stands at Rs4.8 Billion as against Rs.1.8 Billion in 2020.

Even though the market has performed exceptionally well, foreign investor contribution to the total market turnover is not substantial due to the prevailing Covid 19 pandemic throughout the world.