Business

CSE sees 63% rise in account openings post-digitalisation

The Colombo Stock Exchange (CSE) has noted an over 63% increase in Central Depository System (CDS) account openings since the digitalisation of the end-to-end operations of the market on 17 September 2020, according to the Securities and Exchange Commission (SEC).

Digitalisation of the market has afforded investors the opportunity to access the market with ease and convenience and has contributed further to increasing the depth of the market, the SEC said. 

“To strengthen the regulatory framework, facilitate market infrastructure, and increase investor confidence and protection, the SEC has taken many measures including the finalisation of a new SEC Act in line with international standards, which has been presented to the Ministry of Finance. The new Act will enable the SEC to engage in effective and holistic regulation and preserve trust and confidence in the market,” it added.

The Colombo Stock Exchange (CSE) has recorded consistent gains in the All Share Price Index of 31% and S&P Index of 27% since reopening on 11 May 2020. The SEC claimed that Sri Lanka is one of the markets that recovered the fastest from the impact of the coronavirus pandemic in comparison to countries in the Asia Pacific region recording positive price returns in US dollar terms.

“This reflects the strong confidence the investors have placed in the market and the future economic growth of the country. Significant contributions to turnover have been recorded in the Colombo, Gampaha, Kandy, Kurunegala, Galle, Kalutara, and Matara Districts,” it said.

Local investors have contributed to approximately 68% of the total market turnover.