Capital Market to Contribute 50pct of Sri Lanka's GDP by 2016. Present Contribution is 30pct of GDP of $ 60bn

04th April 2013, www.dailynews.lk, By H DH Senewiratne

The capital market is expected to contribute US $ 50 billion for the country’s GDP by year 2016, therefore the Stock Brokers should be geared to handle the highest number of deposits in the future, Director General Security and Exchange Commission (SEC) Dr Nalaka Godahewa said.

“Sri Lanka’s GDP would be US $ 100 billion by 2016, out of which 50 percent should contribute from the capital market. Therefore, each stock broker should be geared to manage many retail accounts, “Dr Godahewa said at the launch of the Colombo Stock Brokers Association website and also introduced code of principles of best practices at the event.

He said that right now the country’s total GDP was US $ 60 billion and the capital market’s contribution to the GDP was only 30 percent.

There are more than 220,000, accounts in the Capital Depository System, he said.

“At present the country has 29 stock brokering companies, each company should be geared to manage at least 20,000 retail deposits. Therefore all stakeholders should work together to make a vibrant stock market to achieve that target.

To popularize the capital market education aspect plays a pivotal role because our present market is a speculative market than the research base market,” he said.

” When the foreign investors are investing in Sri Lanka they have little knowledge on few companies.

Therefore, research on companies would help to create a vibrant and strong market in the country.

“With the stability in the market, the debt market has performed well, better than we expected. Therefore, we have to find ways and means to face future challenges to make a vibrant market,” he said

The President of the Colombo Stock Brokers Association (CSBA) Dimuthu Abeysekera said that in developing a vibrant equity market, the role of stockbrokers is crucial and into this equation comes the tenets of transparency and enhancing effectiveness across the market.

He said that facilitating a customer centric solution in securities trading in Sri Lanka would be a primary objective for the stock broking community, while maximizing financial returns for the broader investor community by proving prudent timely information,” he said.

“Colombo Stock Exchange is showing stability at present and the development of the overall capital market by introducing Principles of Best Practice that would help to promote the professionalism to the market,” he said.

Related Info :

• Sri Lanka Stockbrokers Unveil Website & Ethics Code. 18 Months of Decline Ending with Stability Brought back to the Market

• Rs 45bn Raised in 2011 via IPO’s & Rights Issues by Sri Lankan Firms

• Regional Firms to List in Sri Lanka. Atlease 2 Firms from Maldives May List before Year End

Sri Lanka Stockbrokers Unveil Website & Ethics Code. 18 Months of Decline Ending with Stability Brought back to the Market

03rd April 2013, www.lankabusinessonline.com
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Sri Lanka's Colombo Stockbrokers Association launched a website and  a code of ethics which officials said would improve professional standards and investor confidence.


"By introducing these Principles of Best Practices, we are intent on promoting professional standards among our members," CSBA president and head of Asha Phillips Securities Dimuthu Abeysekera said.

"This will in turn enhance investor confidence prompting the industry to undoubtedly enjoy benefits of a vibrant market place."

Fundamental Research

The website www.colombostockbrokers.com will also have research for potential investors.

Chairman of Sri Lanka's Securities and Exchange Commission Nalaka Godahewa said more research was needed to educate investors.

Godahewa said the worst was over for the market with 18 months of decline ending.

"But I think all the problems we had at that time, the bad feeling, the bad publicity, the difficulties, accusing each other, mistrust excuses they are all now history," he said.

"We have brought back stability to the market. When we say we, all of us together."

The code was devised by a committee under Ravi Abeysuriya, of Heraymila Securities.

Head of Acuity Stockbrokers Deva Ellepola said even stockbrokers who were not members of the CSBA also contributed to the code and he hoped they would join the association again.

Several stockbrokers quit the association during the collapse of a stock market bubble as controversial measures were taken with some high net worth investors to counter credit rules and other action of the regulator amid allegations of widespread securities fraud.

Foreign investors who sold out during the bubble, are now coming back buying into several fundamentally strong companies with strong management whose valuations have improved with falling prices.

But small investors who bought fundamentally weak shares with margin credit which were also pumped up with margin credit in some cases, are in losses licking their wounds and are not active.

Sri Lanka's stock market bubble was fired by excess liquidity that built up in the banking system largely from inflows of foreign money, driving interest rates down amid euphoria from the end of a 30-year civil war.

Repeating History

Analysts say fraud and mischief always rocket up when lose money drive up stocks.

The world's first SEC in the US was also created after the collapse of a stock bubble in the late 1920s which was fired by excessive Federal Reserve money printing and margin credit.

One of the most well documented of such stock bubbles is one that occurred in France in the 1790s with the introduction of the Assignat paper fiat money.

Excessive printing of Assignats eventually led to the collapse of the French economy amid speculation, inflation, price controls and widespread corruption.

"For at the great metropolitan centers grew a luxurious, speculative, stock-gambling body, which, like a malignant tumor, absorbed into itself the strength of the nation and sent out its cancerous fibres to the remotest hamlets," Andrew Dickson White wrote in his iconic work Fiat Money Inflation in France

"At these city centers abundant wealth seemed to be piled up: in the country at large, there grew a dislike of steady labor and a contempt for moderate gains and simple living.

"Nor was this reckless and corrupt spirit confined to business men; it began to break out in official circles, and public men who, a few years before, had been thought above all possibility of taint, became luxurious, reckless, cynical and finally corrupt."

"It grew as naturally as a fungus on a muck heap. It was first felt in business operations, but soon began to be seen in the legislative body and in journalism," wrote White.

Many of those involved were later guillotined and France returned to the gold money again.

Sri Lanka's interest rates are now higher and inflation is falling, though the currency has also depreciated making everyone poorer and destroying the real value of investible savings in banks.

Related Info :

• Colombo Stock Exchange (CSE) Opens 6th Branch Office in Anuradhapura, North Central Sri Lanka

• Listed Firms in CSE Issue Debentures to Raise Big Sums Following Budget 2013 Concessions on Corporate Debt

• CSE's Automated Surveillance System Helps Detect Breaches of Securities Law of the Colombo Bourse. System Supplied by Millanium IT

Sri Lanka Allows Foreign Firms as Margin Providers to Provide credit to Investors in Colombo Stock Exchange

02nd February 2012, www.island.lk

The Central bank yesterday (Feb. 02) announced that it would permit foreign owned companies which are registered with the Securities and Exchange Commission of Sri Lanka as Margin Providers, to engage in the business of provision of credit to investors of the Colombo Stock Exchange.

"The Central Bank is of the view that this move would help develop the business of margin providing, and also increase market activity by improving the access to finance for investors," the Central Bank said.

How to Invest in Unit Trusts - Introduction to Sri Lankan Unit Trust Industry

09th May 20111, www.dailymirror.lk

Unit Trusts were introduced to Sri Lanka in 1991 to provide an alternate investment for the people of Sri Lanka to benefit from the capital market.

The Securities and Exchange Commission of Sri Lanka (SEC) as the licensing authority has the power to permit a Fund Management Company referred as Fund Manager to launch a unit trust under the SEC Act.

In real life, the Fund Manager has to formulate a fund with an objective in mind before seeking an approval from the SEC. The objective of a fund can be for example growth, income and growth or income only and the strategy to achieve the objective needs to be worked out by the Fund Manager to deliver results with in the expected time frame. As the investments of the fund are focused on the specific financial instruments, the fund management company also needs to select authorised investments to suit the type of objective of a fund.

The Fund Manager needs to submit an Explanatory Memorandum (EM) and a Trust Deed to obtain the license from the SEC to launch and operate the Fund. The EM provides necessary information about the Fund offer, the Fund Manager, Trustee and other relevant investor information. The Trust Deed gives details of the formation of the trust and its deposited property, registration process of the investors, dividend distribution, areas of intended investment of the Fund’s assets, appointment of auditors, covenants of the Manager and the Trustee, procedure for a unit holder meeting etc. The Trustee usually a reputed bank and provides services and acts as the beneficial owner on behalf of the investors in the fund.

There are six fund management companies operating in Sri Lanka and more are expected to be licensed. Further there are 22 funds operating in the market managed by the six Fund Managers. Now let us look the advantages for small investors to invest through a unit trust.

Growth Funds
We assume you are an investor who wanted to invest in a Growth Fund to participate in the shares listed in the Colombo Sock Exchange.

Growth Fund is a fund primarily invests in shares to achieve long term growth of capital to the investors.

There are over 240 companies listed in the Colombo Stock Exchange and it is practically difficult for small investors to research and identify good stocks with reasonable valuations. It makes it more difficult to monitor the performance of stocks they buy and hold for longer term. The unit trust managers make it easy for the investors as they undertake the selection of shares and monitor the performance of the underlying companies over time. In addition the Managers also provide other services to the investors to make investment in shares a hassle free affair in the day to day life. The investors enjoy a host of benefits by investing through a unit trust.

They are:
• Expert professional fund management at lower cost
• Diversification of your investment in many shares ( Do not put all your eggs in one basket)
• Low minimum investment level
• Excellent long term prospect
• Protection by independent Trustees
• Easy to buy and sell or transfer
• Invest jointly with minors
• Choice of investments and transferability among funds
• Tax free income

How to invest in Unit Trust?
There are many unit trusts available in Sri Lanka and investors can contact the Fund Management Company and obtain an Explanatory Memorandum and an application form to open an account and to make an initial investment. Consider charges and the performance of different unit trusts and their track records.

Shares and equity unit trusts can fall as well as rise, so you should aim to hold for at least five years.

Consider how much you can afford to invest and how often. It is prudent to keep some money in bank and short term fixed income instruments for unexpected emergencies.

You can usually choose to make your payments by cheque, direct credit to the designated bank accounts, standing order or any other means recommended by the Fund Manager.

Regularly check the statement or reports from the Fund Manager to track the progress of your investment. You can also follow the daily prices of your units in the news papers or visit the website of the Fund Manager.

When you need any help or clarification you can contact the Registrar or relevant officer who will offer advice on their range of trusts.

Solving financial planning needs
You can redeem your units on any business day and receive the proceeds within short periods. However, unit trusts works best for you as a long term investment rather than a short term punt.

You can switch between different types of funds – for example from high to low risk, or growth to income etc.

You can build up savings by re investing dividends and through regular savings.

Types of Unit Trusts
There are different types of Unit Trusts available in the market. Let’s see some of them:

• Growth Funds: Growth Funds are higher risk funds offer higher return prospects to the investor. These funds invest higher proportion of its money in listed shares. There are many Growth Funds operating in the fund. Some of the funds distribute dividends and others do not.

• Balanced Funds: Balanced Funds are moderate risk funds offer dividend and growth prospects to he investors. These funds invest around 50-60% of its money in listed shares and the balance in selected fixed income securities. These funds often distribute dividends annually based on the fund performance.

• Income Funds: Income Funds are low to moderate risk funds depending on the short to long term investments in debt instruments and allocation between government and corporate debt instruments. This fund pays annual or even quarterly or half yearly dividends. Often it is classified as an income fund with less prospects to grow. However at times of volatile interest rate environment these fund can offer growth prospects as well.

• Index Funds: Index Funds are more passive form of fund and tracks an accepted index. With negligible tracking error, these funds can offer higher upside when the underlying index rises.

There are many other specialized unit trusts, operating specializing in sectors such as money market, Sharia compliant Islamic and sub sectors of the stock market.

Related Info :

• Market Indicators of Unit Trust Funds - The Unit Trust Association of Sri Lanka

• Sri Lanka Unit Trusts Manage Rs22bn in Assets. Public Awareness a Must for Participation in the Economic Growth

• Sri Lanka Unit Trusts Attract Rs1.5bn New Funds in First Ten Months of 2010
• IPOs on CSE Must Allocate 40pct Shares to Retail Investors, Sri Lanka's Markets Regulator Decides. 10pct Offer to be Made to Unit Trust Funds

• Sri Lanka’s First Unit Trust Company NAMAL Leverages Market Position with Backing from Union Bank
• Ceylon Tourism Fund to Benefit by Sector Boom. Banking & Tourism to Top Colombo Stock Exchange in 2011

• Saudi Arabian Heraymila Investments of Al Mashal's Start a Fund to Invest in Listed Sri Lankan Companies

SEC to Improve Stock Market Payment Settlements in Sri Lanka By Using Slips

08th April 2011, www.dailynews.lk By Charumini De Silva

The Securities and Exchange Commission of Sri Lanka (SEC) will improve the stock market making payment settlements much more effective.

Securities and Exchange Commission Capital Market Development and Research Director Vajira Wijegunawardane said the commission is currently having discussions with the industry to encourage the use of slips rather than using cheques for transaction settlements, as it will benefit all stakeholders of the capital market.

"The transactions that are settled through cheques take at least two to three days to convert into cash. The use of slips will make the entire payment settlement process of the stock market more efficient. At present, there are payments settled via slips, but a very small percentage compared to the use of cheques," he said.

Wijegunawardane said the SEC is encouraging the use of slips since it would greatly benefit the entire market and make it more productive.

This will reduce the burden on settling the Initial Public Offering (IPO) payments, dividend payments and all the other transactions.

The CSE will set up the Clearing Corporation under the regulatory purview of the SEC to minimize CSE settlement risks. The requirement of the Clearing Corporation is much felt and the SEC will support the CSE to fast track the setting up process of it.

"The financial strength of the Clearing Corporation matters most and this will ensure that foreign and local investors reduce the risk of their transactions in the capital market. Having a Clearing Corporation would drastically reduce the risks in the stock market transactions," he said.

Related Info :

• IPOs on CSE Must Allocate 40pct Shares to Retail Investors, Sri Lanka's Markets Regulator Decides. 10pct Offer to be Made to Unit Trust Funds

• Sri Lanka Calls for Proposals to Set up a Multi Asset Commodities Exchange for Spot & Forward Markets

IPOs on CSE Must Allocate 40pct Shares to Retail Investors, Sri Lanka's Markets Regulator Decides. 10pct Offer to be Made to Unit Trust Funds

10th March 2011, www.lankabusinessonline.com

Sri Lanka's markets regulator said companies planning initial public offerings in future will have to allocate a minimum of 40 percent of shares initially to retail individual investors.

The Securities and Exchange Commission (SEC) said the move is aimed at helping broad base share ownership in the country.

The new rules will be effective from March 15, 2011.

"The SEC has observed that the recent IPOs were heavily oversubscribed due to investors using the bank guarantee option to submit IPO applications for a very large quantity of shares," the statement said.

"This has resulted in a majority of retail investors being allotted a small portion of the shares applied and has not created a level playing field in the primary market thereby hindering the process of broad basing share ownership in the country."

The SEC said a minimum of 40 percent of the offered shares for a particular share class in a public offer must be initially made available for allotment to retail individual investors.

A ‘retail individual investor’ is as an individual investor who applies for up to a maximum of 3,000 shares or for a value of not more than 100,000 rupees, whichever is higher.

Applicants submitting applications under other investor categories shall not make applications under the retail individual investor category, the statement said.

The SEC also said a minimum of 10 percent of the offered shares in an IPO must be initially made available for allotment to Sri Lankan growth or balanced unit trust funds comprising of not less than 500 unit holders resident in Sri Lanka making up of at least half of the fund.

If there is an under-subscription in the unit trust investor category and an over-subscription in other investor categories, the oversubscription in the retail individual investor category shall be given first priority in allotment of under-subscribed shares, the SEC said.

If there is an under-subscription in the retail individual investor category and an over-subscription in other investor categories, over-subscription in the unit trust investor category shall be given first priority in the allotment of under-subscribed shares.

The new rules come after talks with the Colombo Stock Exchange, Colombo Stock Brokers Association and IPO managers.

The rules were mooted after increasing concern that big investors using bank guarantees to apply for large volumes of IPO shares were edging out small investors.

Stock market analysts have said new IPOs are coming at increasingly higher valuations.

A flood of IPOs is expected this year as companies move to raise cash in a market which has been hitting record highs in recent months, although it has fallen this week.

Related Info :

• Sri Lanka Securities Watchdog Eases Rules on Price Cap & Private Placements

• Sri Lanka to See app 50 IPO's in 2011 with atleast Two over Rs5bn by April

• Sri Lanka’s Equity & Capital Market Sees $459mn Net Inflow in 2010 from Total Inflow of $1.91bn

Sri Lanka Securities Watchdog Eases Rules on Price Cap & Private Placements

24th February 2011, www.lankabusinessonline.com

Sri Lanka securities watchdog has eased rules on volatile shares under price caps, trimming the period and also lifting a requirement for a 50 percent up front deposit prior to purchase, an official said.

"The period of the price band has been reduced to 10 days from 15," Securities and Exchange Commission chairperson Indrani Sugathadasa said.

"The requirement for a 50 percent up front deposit has also been lifted."

SEC director general Malik Cader said the rules will take effect from March 01.

The regulator brought in the rules in August 2010 after illiquid stocks in particular started to fluctuate widely.

Sugathadasa said the rules had brought stability to the market and turnover levels remained high dispelling fears that the rules will result in a market crash.

In 2010 the stock exchange had a turnover of 507 billion rupees. But till February 23, a period of less than two months, turnover was 127.7 billion rupees.

The regulator said a one-year lock-in period slapped on private placements will apply to shares allotted after February 07.

SEC said in February that investors who buy stocks in a private placement will not be allowed to sell out after a listing up to a year after the placement.

The lock in period will now be one year from February 07, when the rule was brought in.

The decision followed appeals from investors who bought shares in recent placements before the rule was introduced.

The rule will apply to private placements where investors were allotted shares from February 08 onwards.

Sri Lanka to See app 50 IPO's in 2011 with atleast Two over Rs5bn by April

24th February 2011, www.lankabusinessonline.com

Sri Lanka will see around 50 initial public offerings in 2011, with at least two issues over five billion rupees (50 million US dollars) by April, securities exchange commission director general Malik Cader said.

"We expect about 10 IPOs to come by March-April this year," Cader told reporters. "About two of them will raise over 5.0 billion rupees each from the market."

Cader said a number of state firms were also slated to come to the market.

The regulator is also looking at current rules on IPO subscriptions where large investors are using bank guarantees to apply for stocks. Small investor have complained that it gives an unfair advantage to large players.

"But there is a view that the market has to have high net worth as well as small investors," SEC chairperson Indrani Sugathadasa said.

"We are looking at the rule and will soon make a decision."

Under current rules generally preference is given to small investors with a larger proportion of their applications being filled.

Usually applications for minimum subscriptions are fully filled.

Sri Lanka Non Conventional Renewable Energy Contribution to the National Grid was 6.8pct in 2010 with New Projects

22nd February 2011, www.dailynews.lk, Harshini Perera

The contribution of non-conventional renewable energy sources to the national grid has increased to 6.8 percent last year. This was 5.5 percent in 2009.

Going in line with the Government expectation, the non-conventional renewable energy sector targets to have 10 percent contribution to the national grid by the end of 2015.

The number of non-conventional energy projects that commenced in 2010 were high at 90 compared with 85 in 2009. The non-conventional renewable energy sources have contributed to the national grid with 213 megawatts as at January 31, 2011.

The main contributor for non-conventional renewable energy is still held by mini hydro power and it is 172 megawatts as at January 31, 2011.

The capacity of the mini hydro power energy is generated by 84 projects operating in the prospective areas.

The second renewable energy source is the wind power which accounts for 30 megawatts from the production of three projects.

Biomass-agricultural and industrial waste power stands next with a contribution of 11 megawatts while solar power shows less contribution with two and one projects respectively, a Ceylon Electricity Board (CEB) official told Daily News Business. Few foreign investors too have shown interest in investing in renewable energy projects.

“The approval process for projects should be faster than it prevails at present and there should be more Government cooperation to the Sri Lanka Sustainable Energy Authority (SEA). The Provincial Councils too delay the approval of projects. There should be special incentives given to developers without discouraging them,” Small Hydro Power Developers Association Secretary General S B Niyangoda said.

Related Info :
• Non-Conventional Renewable Energy (NCRE) to Supply 15pct of Sri Lanka's Need by 2015. Wind Power to Play a Major Role

• Sri Lanka's New Renewable Energy Tariffs Displace Wind as the Most Expensive

• High Potential for Wind Power in Sri Lanka. Five New Plants to be Built. 300MW of Power to be Added

• Sri Lanka to Build Mini-Hydro and Wind Power Plants

• $15mn Biomass Energy Investment on Dendro Plant for Gliricidia Fuel Wood to Supply National Grid 10MW

• Solar Energy Can Free Sri Lanka's Dependence on Fossil Fuels - Kanagalingam Gnanalingam, Rtrd Additional General Manager of Ceylon Electricity Board
• Power Costs to Reduce with Progressive Tariff Reforms - Energy Consultant Dr Tilak Siyambalapitiya

Colombo Stock Exchange to Have Locked Accounts After Going Scripless

16th December 2010, www.lankabusinessonline.com

Sri Lanka's Colombo Stock Exchange will create locked accounts for shareholders of listed firms who do not wish to trade after the bourse goes scripless, a statement said.

The accounts in the CSE's Central Depository Systems are part of a move to fully dematerialise all listed securities by converting all paper-based physical share certificates into electronic form, it said.

"The CDS would introduce a facility for shareholders of listed securities who would not wish to trade their securities, to 'lock' their securities in a separate locked balance in their own CDS accounts."

Once securities are 'locked' they would not be visible to CDS participants like stock brokers and custodian banks, maintaining the confidentiality of the information and safeguarding shareholders from unauthorized transactions by stock brokers.

Trading on locked balances would be suspended, the statement said.

Securities could be 'unlocked' from a locked balance and transferred to the trading balance of the CDS account holder only with the written authority given by the CDS account holder to the CDS through stock broker and custodian banks.

Withdrawals from the CDS would be allowed for mortgaging of securities, the CSE said.

CDS account holders having securities deposited in locked balances in their CDS accounts would receive a separate statement every month.

The markets regulator, the Securities and Exchange Commission, has made it mandatory for securities of new listings to be in electronic form from January 01, 2011.

All applicants for initial public offers which open for subscription on or after January 01 will have to open CDS accounts and indicate their CDS account numbers in the IPO application form.

"The company secretary and registrar would not issue securities certificates to the applicants who do not have valid CDS accounts," the CSE statement said.

Shareholders of existing listed companies which got listed before January 01, 2011 will be given to a year from January 01 to convert their shares into electronic form.

Colombo Stock Exchange to List 75 Companies to Boost Liquidity. Capitalization to Up by 45pct to Rs 3.3 Trillion

08th December 2010, www.dailynews.lk

Sri Lanka's Securities and Exchange Commission (SEC) said on Tuesday it aims to boost the Colombo Stock Exchange's capitalization by 45 percent to a 3.3 trillion rupees ($ 29.67 billion) by the end of 2011.

Most growth will come from listing up to an additional 75 companies to try to boost liquidity and increase the proportion of shares regularly traded, SEC Director General Malik Cader told Reuters in an interview.

"There will be one trillion (rupee) in new market cap by 2011," Cader said. "This is a very easy and reachable target for the simple reason being the listing of anything between 60 to 75 companies," he said.

Five large companies in which the Government has a large stake, will be listed in a move to replicate on a smaller scale India's success in raising more than US $ nine billion from the sale of stakes in state companies.

Local retail investors and Government funds have been aggressive buyers of the market.

Cader said 35 finance companies and some small private firms will be listed by June. All insurance firms will be made to list to help increase liquidity and transparency.

The current market capitalization is 2.3 trillion rupees ($20 billion), having doubled in the first 10 months of 2010.

"We expect a lot of foreign inflows particularly next year," Cader said.

To entice overseas money, the SEC might consider increasing the foreign holding limit in the stock market slightly from the current 20 percent limit.

Colombo Stock Exchange Undergoes Market Correction. Non-Investment in Speculative Shares Keeps Foreign Investors Safe

09th August 2010, www.news360.lk, By Prasanna C Rodrigo

Stock Analysts says the Colombo Stock Exchange which is undergoing a “market correction” following several regulatory actions by the Securities & Exchange Commission will come back to normal very soon.

The All Share Price Index of the Colombo Stock Exchange has declined by 202.89 points or 4.01% as of 10.37 AM today, according to the www.cse.lk

Sanjitha Rajasekeran, the Research Head of Asia Securities said “it was a long awaited correction”.

However commenting on the SEC actions she said “it was a right move, but I don’t know whether it was rightly timed”.

Rajasekeran added that the move hindered the investor sentiment thus resulting in the market loosing nearly 100 points during the last 2 trading days.

However she said the market will start “consolidating” soon.

Dinal Wijemanna the Head of Taprobane Securities commenting on the SEC move said “People have to look at the fundamentals” he said this trend cannot continue as this kind of share price rise is not sustainable in any market.

Wijemanna added “we felt some action is needed”.

He also said that SEC has to continue to safeguard the investors and commented that “they are not targeting any particular company and only targeting stocks with price manipulation”.

He said in the longer run the investors will view these actions very positively.

Meanwhile a Stock Analyst who did not want to be quoted said the actions by the SEC is good, however added that “it should have ideally come earlier”.

According to the analyst the buying interest in the market is still there and once the ongoing temporary price correction ends, the fundamentally sound stocks will come back.

However he said the price banner imposed by SEC on share prices is not the healthiest move and should have done only for the shares that were in question.

SEC last week imposed trading halts on shares such as Touchwood, BPL, Dankotuwa and Environmental resources which it thought was moving up in prices owing to speculations.

AFFECTED ONES
Stock analysts say the investors who has purchased shares at a higher price and added “day traders” who buys and sells during the same day might have got impacted.

However they say foreign investors were safe out of this situation as they did not buy speculative shares.

Research Head of Asia Securities Sanjitha Rajasekeran said that institutional and foreign investors invested their money in fundamentally strong stocks with a medium term perspective.

Another analyst said “Lot of foreigners takes a 3 to 5 year view when putting their money in CSE stocks”.

Sri Lanka participates at the inaugural AFIE

25th February 2010, www.news.lk

Director General of the Securities and Exchange Commission of Sri Lanka Channa De Silva in a press release says that their Chairman Mr.Udayasiri Kariyawasam was invited to attend the inaugural meeting of the Asia Forum for Investor Education (AFIE) which was held on 3rd and 4th February 2010 in Seoul, Korea.

Mr. Kariyawasam had attended this inaugural meeting and made a presentation on the “Current Status and Challenges of Investor Education in Sri Lanka”. This forum was hosted by the Korea Financial Investment Association (KOFIA) and the Korea Council for Investor Education (KCIE). The AFIE is the Asia-Pacific regional body for the International Forum for Investor Education (IFIE).

The primary objective of the AFIE is to facilitate investor education and information exchange, ultimately contributing to the development of capital markets in the Asia-Pacific region. The AFIE will provide a platform for investor education experts in the region to work together and explore more effective strategies in their efforts to promote investor education.

Singapore Investor Forum by SEC of Sri Lanka Targets Fund Managers in Singapore to Promote Investment

18th November 2009, www.lankabusinessonline.com

Sri Lanka market watchdog hosts Singapore investor forum An investor forum targeting fund managers in Singapore to promote investment in Sri Lanka's capital markets will be held on November 26, the island's market watchdog said.

"With the end of the war and the return of investor confidence, Sri Lanka is poised to enter an era of economic growth and prosperity," the Securities and Exchange Commission said.

"In the light of these favourable developments this investor forum marks the first step in a series of events targeted at promoting capital market investments."

SEC chairman Udayasri Kariyawasam said in a statement that about 125 participants have signed up, above a targeted 100, showing that there was renewed interest in the country.

The forum is organized by the SEC and the High Commission of Sri Lanka in Singapore.

A luncheon meeting will be held on November 26 at the Fullerton Hotel where John Keells Holdings PLC, Commercial Bank of Ceylon PLC and National Development Bank PLC will make presentations.

The statement said Sri Lanka's deputy finance minister Sarath Amunugama, senior officials of the SEC, CSE, broking firms and custodian banks will attend the conference.