The Emerging Asia Pacific Capital Markets: Sri Lanka (CFA Institute)

The capital market of Sri Lanka consists of government securities, stocks, and corporate bonds. All financial instruments have a combined value of about USD 66.3 billion as of July 2020. Government securities contribute the most, with about 63% of the economy. Government securities are issued in both Sri Lankan rupee (LKR) and foreign currency denominated securities.

The current stock market formed in 1985 and was later renamed the Colombo Stock Exchange (CSE). The CSE currently has two indices, and the main securities traded include ordinary and preferred shares, close-ended funds (unit trusts), and corporate debentures. Currently 287 entities are listed on the CSE, with stocks contributing 16% of the economy.

The corporate bond market became active in 2013, with the introduction of incentives from the government, including the exemption of interest income received from listed debt from income and withholding taxes. READ MORE

Similar Posts:

This entry was posted in Fund Manager News & Research and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.