Colombo Stock Exchange - An Overview

The main stock exchange in Sri Lanka is ColomboLet`s talk bout the technology of the Colombo Stock
Stock Exchange. The exchange is known for it's fullyExchange. The exchange was partially automated in
automatic trading platform. CSE is continuouslythe year 1991. The share transaction was made easy
contributing to national wealth by creating valueby the installation of an electric clearing &
through national securities.settlement system and a central depository. The
The head office of Colombo Stock Exchange isexchange was completely automated in the year
located in the building of World Trade center Towers,1997 with the installation of ATS which stands for
Which is situated in Colombo. It was started in theAutomatic Trading System. With the installation of
year 1995. The branches CSE are spread ed all overATS the transparency of trading significantly
the country. You can find the branches at Negombo,increased. CSE is planning to introduce a debt
Kurunegala, Matara and Kandy. As it was recorded onsecurities trading system which will be used for
31 December 2007, The Colombo stock exchangetrading of fixed income securities.
has listed 235 companies.The three main systems operated by CSE are as
Share trading in Sri Lanka started in the year 1896.follows.
The trading was started by Colombo brokers1. Central Depository System
association. In the beginning the trading was2. Automated Trading System
commenced in Limited liability companies. These3. Debt Securities Trading System
companies were involved in opening tea plantations inCSE is one of the members of World Federation of
Sri Lanka.Exchange. Colombo stock exchange was elected as a
The formal stock exchange inaugurated in the yearmember of this federation in the year 1998. It was
1985. In this year Colombo stock exchange tookthe first exchange from the south east Asia region
over the market from Colombo brokers association.to obtain the membership of WFE.
Currently the companies listed in the CSE representIn the year 2000 CSE became the founder member
20 business sectors. These companies market theof SAFE which stands for South Asian Federation of
capitalization of $7.2 billion. The capital marketed byExchanges. The current chairman position of SAFE is
the stock exchange is approximately 25% of theoccupied by CSE. SAFE consists 17 exchanges from 6
GDP of the country.different countries. CSE is continuously striving to
Let`s have a look at the two in dices of CSE. Theyencourage the cooperation among the members of
are as follows.SAFE so that individual markets of the members can
1. All Share Price Indexattain a new level.
2. Milanka Price IndexThere are many new companies which has started
The pre-market session of the exchange runs from 9listing in the CSE after the cease fire agreement
AM to 9.30 AM and the normal trading session runssigned by the Sri Lankan government. This
from 9.30 AM to 2.30 PM.agreement brought an end to a 20 year old civil war.