S & P Sri Lanka 20 index launched
Colombo Stock Exchange CEO Surekha
Sellahewa, S & P Indices , Vice President, Global Equity and
Strategy Indices Alka Banerjee, Colombo Stock Exchange
Chairman Krishan Balendra, Securities and Exchange
Commission of Sri Lanka, Chairman Thilak Karunaratne and S &
P Indices Director, Business Development, South Asia Koel
Ghosh at the launching ceremony yesterday Picture by
S &P Sri Lanka 20, a globally recognized index , which has been
jointly developed by S and P Indices and Colombo Stock Exchange was
officially launched yesterday.
The index is designed to assist the investors both home and abroad to
gauge the performance of the Sri Lankan equity market and that include
the largest 20 stocks by total market capitalization, listed on the
Colombo Stock Exchange that meet minimum size, liquidity and financial
The constituents are weighted by float adjusted market
capitalization, subject to a single stock cap of 15 % which is employed
to enhance portfolio diversification.
S & P Sri Lanka index has been designed in accordance with global
standards and to be eligible for inclusion, stocks must have a minimum
float adjusted market capitalization of Rs 500 million, a six month
average daily value of Rs 1 million, should have traded at least 10 days
of each month for the three months prior to the re-balancing reference
date and a positive net income over 12 months prior to the re-balancing
All stocks are classified according to the Global Industry
Classification Standard which is widely used by the market participant
across the world.
Speaking at the event Krishan Balendra, Chairman of Colombo Stock
Exchange said with a heightened emphasis on economic development,
specially the targeted 8-9 + GDP growth, capital market will have to
play a pivotal role to raising required capital to drive the expected
GDP growth and SEC has also plans to implement few initiatives
particularly DVP and risk management system in a timely manner .