Fair bit of foreign buying from non-resident Sri Lankans

As far back as one would recall, the Colombo Stock Exchange (CSE) has had a net foreign outflow.

While foreign investors are cashing out, non-resident Sri Lankans keep on buying, albeit in small quantities.

For a Rs. 3 billion a day turnover, their contribution is a mere 2 per cent but stockbrokers said that 'something is better than nothing'. '' Many are salaried professionals from West Asia. Those in countries like Qatar, Oman, and Dubai are sending money to Sri Lanka regularly now and getting their respective banks and stockbrokers to invest on their behalf,'' a stockbroker said.

Another stockbroker added that the vibe from these professionals who transfer money is that some fear that there may be sudden changes to laws in some of these countries which may make it difficult to transfer money to Sri Lanka. "This is related to the current pandemic situation."

Th e Securities and Exchange Commission’s (SEC) move to attract the diaspora, foreign investors, and fund managers overseas and showcase the Colombo Stock Exchange (CSE) as an attractive destination will pay off in the current setting, he added.

The SEC and the CSE’s digitalisation second phase which will be launched within this month will enable features such as the use of the CSE mobile application for Central Depository Systems ( CDS) account opening for local companies and foreign individuals which will attract more locals residing abroad.

The SEC is organising online forums for investors in association with the CSE and the respective embassy with the Ministry of Foreign Affairs.

After this, the embassies will be able to assist the SEC to promote the CSE in those countries.

An analyst said that a fresh trend of corporates who left the CSE in the 90s is returning. “This is probably owing to the low valuations."