CSE expansion plans are underway as the Colombo Stock Exchange works to broaden its investor base amid post-Ditwah recovery challenges. The initiative targets domestic investors, aiming to raise capital, increase awareness, and create secure investment pathways.
Colombo Stock Exchange advances plans to broaden investor base post-Ditwah
The Colombo Stock Exchange (CSE) has announced plans to broaden its investor base despite the challenges caused by Cyclone Ditwah, highlighting a proactive approach to post-disaster recovery. According to CSE Chairman Dimuthu Abeysekera, the market has experienced remarkable growth this year, with an overall improvement of approximately 40 percent since January and a surge of over 100 percent since September 2024.
Abeysekera emphasized that the majority of investors are concentrated in the Western Province, leaving much of the country untapped. “We want to move out of the province. The stock exchange currently has ten branches outside Colombo, but we intend to establish a branch in each province to increase access and awareness,” he said. This expansion is aimed at engaging more local investors and fostering inclusivity in financial participation.
Sri Lanka has more than 900,000 Central Depository System (CDS) accounts, but only about 50,000 are active. Abeysekera noted that this represents less than 0.2 percent of the population. To address this, the CSE plans to raise the number of active accounts to approximately 100,000 initially, focusing on investor education and outreach campaigns beyond Colombo. Many citizens remain unaware of investment opportunities outside traditional banking and insurance channels, which leaves them vulnerable to unregulated schemes promising unrealistic returns.
“When interest rates are down and people deposit their money, they get only six to seven percent interest. Without awareness of stock market options, many are caught by criminals offering ten to fifteen percent monthly returns. We aim to provide a regulated alternative,” Abeysekera explained. By offering secure investment channels, the CSE hopes to restore public confidence and direct savings into productive avenues.
The CSE’s expansion strategy aligns with the Securities Exchange Commission’s (SEC) new initiative, ‘Samata Kotasak’ (A share or unit for everyone), promoting wider participation in capital markets. The CSE is also actively engaging with companies to encourage bond issuances, including green and blue bonds, and has welcomed two new firms onto the market. These initiatives target SMEs and other industries, providing opportunities for businesses to access capital while contributing to national economic growth.
Internationally, the CSE has observed significant investor activity. While divestments totaled approximately Rs. 9 billion last year, they surged to around Rs. 48 billion by November this year due to market expansion. Abeysekera noted that investors cashed in foreign funds to meet obligations to external stakeholders while leveraging the strong market performance.
Looking ahead, the CSE plans to extend its international engagement, beginning with the United Arab Emirates (UAE) in the next quarter, followed by potential outreach to Europe and the United States. The aim is to attract foreign investment, create awareness of Sri Lanka’s growing capital markets, and integrate local opportunities into global financial networks.
Speaking at the Sri Lanka Economic and Investment Summit 2025, organized by the Ceylon Chamber of Commerce, Abeysekera reiterated the importance of resilient market infrastructure and strategic investor outreach. He stressed that post-Ditwah recovery presents an opportunity to not only rebuild but also strengthen the nation’s capital market ecosystem, benefiting both local and international investors.
By combining awareness campaigns, provincial expansion, SME engagement, and international outreach, the CSE is positioning itself as a dynamic platform for growth. The focus on investor education, accessible branches, and secure financial products underscores the exchange’s commitment to building a robust and inclusive investment environment. As Sri Lanka continues to navigate economic recovery, these initiatives could significantly contribute to sustainable capital market development and wider financial literacy across the country.