Despite the overall adverse performance of the Colombo Stock Exchange (CSE) last year due to a multitude of reasons, the country’s capital market could still be hopeful that the positive trend of foreign investor interest will continue with sizable investments lined up to take off during this year.
The total foreign investor contribution to market turnover recorded 42.5% compared to 34.4% in 2015, while recording a total net foreign flow of Rs. 633.5 million last year compared to the Rs. 5.4 billion in foreign outflow in 2015.
“Although both indices in 2016 have been negative, the flipside we have seen is that there is a foreign net inflow this year. This means that foreigners are still selectively looking at stocks, which I feel provides a good opportunity for the accumulation of stocks because it offers good value right now. I think investors should really make use of this opportunity,” CSE Chief Executive Officer Rajeeva Bandaranaike told the Daily FT.