CSE Market Overview

The Colombo Stock Exchange (CSE) is the nucleus of Sri Lanka’s capital market as the licensed operator of the stock market. We are regulated by the Securities and Exchange Commission of Sri Lanka (SEC) and was incorporated as a company limited by guarantee over 40 years ago. Over the years, the Sri Lankan capital market has experienced numerous decisive and beneficial outcomes as a result of a progressive journey complemented with the joint efforts of all stakeholders. At this critical juncture in our country's history, we continue to see ourselves as active participants in economy.

A Strong Base of Stakeholders

• Stockbroker network of 15 members and 13 Trading members
• 284 Listed companies Across 20 Global Industry Classification Standard (GICS) industry groups
• Diversified pool of over 930,072 individual and institutional investors

Welcoming Policy Environment

Since 1992, CSE has been equipped with a level playing field for local and foreign investors and an easy process for opening accounts.

• Inward Remittance Account
  The Inward Remittance Account, or the Inward Investment Account, a bank account system, has been in place since 1992 in different forms for an extended period without interruption.
• Tax Benefits for Foreign Investors
  Capital gains are tax exempted whilst dividends are taxed at 15%.
• Investor Settlement Risk Mechanism
  Settlement risk is minimized through the availability of the DvP system, and a Central Counterparty (CCP) System scheduled for implementation during 2025.

Market Infrastructure and Services

The CSE acts as a conduit for both equity and debt capital and provides the necessary market infrastructure to buyers and sellers in order to transact.

• Trading Infrastructure
  Our main trading infrastructure comprises the Automated Trading System (ATS), a multi-asset class, scalable, and versatile platform supporting future growth efforts.
• Post-Trade Services
  Post-trade services comprise central securities depository-based clearing (CSD Clearing), settlement, and safekeeping provided through a fully owned subsidiary, Central Depository Systems (Private) Limited (CDS).
• Market Data Services
  The CSE also provides real-time and reference market data to vendors and other users.
• Trading Oversight
  The CSE also provides real-time and reference market data to vendors and other users.

Advancing Capital Market Infrastructure at the CSE

At the Colombo Stock Exchange (CSE), we have a wide range of products and mechanisms designed to support a dynamic and evolving capital market.

Features

• Delivery Versus Payments (DVP) clearing and settlement mechanism for equity trading.
• OTC Platform for REPO transactions.
• Central Counterparty (CCP) system to reduce trading risks.
• Settlement cycle reduced to T+2, in line with global market trends.
• Stock Borrowing and Lending (SBL)
• Regulated Short Selling (RSS)

The above features have been enabled to facilitate trading.

Products

• Real Estate Investment Trusts (REITs).
• Foreign currency-denominated share listings for local companies.
• Sustainable Bonds, including Green Bonds and Blue Bonds.
• Shariah Compliant Debt Securities.
• Perpetual Debt Instruments
• Infrastructure Bonds.
• High Yield Bonds.

Promising Growth Potential at the Exchange

• Market Capitalization reached an all-time high of USD 21.71 billion as of June 30, 2025 — the highest in CSE history.
• Average daily turnover volumes for the first 6 months of 2025 stood at USD 13.78Mn.
• Total capital raised via the CSE in the first half of 2025 stood at USD 90.29 million, through both equity IPOs and debt issues.
• With a price-to-earnings (P/E) ratio of 8.54 in June 30, 2025, the market continues to suggest strong potential for long-term value creation.
• CSE ranked among the top 3 best-performing Asian markets in H1 2025, behind South Korea (KOSPI, +28.01%) and Hong Kong (Hang Seng, +20.00%).
• The issuance of the first green bond with DFCC Bank marks a significant step in the market’s focus on sustainable financing.