Colombo Stock Exchange (CSE)

History of the Colombo Stock Exchange :

The history of share trading in Sri Lanka dates back to 1896 with the inception of share trading in limited liability companies under the the Colombo Brokers Association. In 1985, the Colombo Stock Exchange(CSE) took over the Stock Market from the Colombo Shares Brokers Association, which administered the activities of the Colombo Stock Market from 1896 to 1985. It was established as a non-profit making limited liability company under the Companies Act of Sri Lanka. In the following year, CSE became a member of The International Federation of Stock Exchanges (FIBV).

In 1991, the Central Depository System (CDS) was established, which introduced the automation of the Clearing House of the Stock Exchange. An electronic and settlement system for share transactions was also introduced together with the CDS. In 1997, the stock exchange took another step forward towards a more efficient market with the installation of the Automated Screen-Based Trading System (ATS), which saw the automation of trading activity. Within 17 years of establishment, a state-of-the-art technological infrastructure was developed, and it significantly increased the competitiveness and efficiency of the market.

In 1996, a two-tier system - Board "A" and Board "B" was introduced. Board "A" comprises of major companies while medium and small companies made up Board "B". The stock exchange experienced an unprecedented surge in growth in both indices after the ceasefire agreement was signed in 2001 by the Sri Lankan government. This signified the end of a 20 year civil war which was highly responsible for the rather sluggish performance of the market during the 1990s. This led to a huge increase in foreign investment and over the years, the CSE has seen a vast improvement in its performance, which saw the All Share Price Index (ASPI) surpassing the 3000 mark this year for the first time in history on February 13. Fortune Magazine has recently highlighted the CSE as the second best Emerging Markets stock exchange in the world.