Date Last Updated: August 18, 2019
Asia

Stock Market Guide to the Colombo Stock Exchange

The predominant stock exchange of Sri Lanka, is the Colombo Stock Exchange, or also known as the CSE. The Colombo Stock Exchange was officially established in 1985, and currently has approximately fifteen institutions registered, that operate as licensed stockbrokers. The CSE also has twenty business sectors, and within these sectors, there are over 243 listed companies. The All Share Price Index, or ASPI, and the Milanka Price Index, or MPI, are the two indices that are available in the CSE. The entire system operates with the latest technology and infrastructure. Systems such as the Debt Securities Trading System, Central Depository Systems and Auto Trading System, ensures that the CSE operates efficiently and that the trading of government debt securities, shares, security trading and corporate debt securities runs smoothly and quickly in this order driven environment. Foreign investments are welcomed on the Colombo Stock Exchange, with the exception of a small group of companies, where restrictions and procedures have been implemented.

The Gross Domestic Product for Sri Lanka, is approximately $23.5
billion.
It is considered to be a developing nation, with a lower-middle income. There is a
vast
difference between rural and urban area income, and a significant portion of the population in Sri Lanka is impoverished.
The
rural areas are faced with an undeveloped infrastructure, the complete
lack
of employment opportunities that causes families to have no income, an
ailing agricultural production and conflicts. All these factors make it
increasingly difficult to close the income gap between the
communities.

Sri Lanka does have access to natural resources such as phosphate,
graphite, gems, limestone and mineral sands. Agricultural products that
play
a major role in the economy of Sri Lanka are rice, coconuts, spices,
rubber
and tea, while the manufacturing sector concentrates on food
processing,
garments, refined petroleum, metal products, paper products, leather
items
and wood products.

The export market of Sri Lanka consists mainly of India, the United
States of America and the United Kingdom. The products that are
exported to
these countries include jewelry, garments, rubber, gems, coconuts, tea
and
refined petroleum. Products that are imported into the country come
mostly
from the United States of America, Hong Kong, Iran, India, Japan,
Singapore,
South Korea, the United Kingdom, Belgium and the UAE.