Huge increase in CDS account openings since digitalisation | Sunday Observer

Huge increase in CDS account openings since digitalisation

4 October, 2020

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 May 11, 2020, a media release from the CSE stated.

Sri Lanka is one of the markets that has 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 confidence the investors have placed in the market and the future economic growth of the country. Significant contributions to turnover has been recorded in Colombo, Gampaha, Kandy, Kurunegala, Galle, Kalutara and Matara districts.

Local investors have recognised the potential in the market especially in terms of attractive market valuations and growth potential of Sri Lankan listed companies and contributed to approximately 68% of the total market turnover.

There was an increase of over 63% in Central Depository System (CDS) account openings since the digitalisation of end-to-end operations of the market on September 17.

Digitalisation of the market has afforded investors the opportunity to access the market with ease and convenience and has contributed further to increase the depth of the market. 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.