The role of Sri Lanka’s capital market in funding and mobilizing savings has become more comparable to that of the banking sector, according to Securities and Exchange Commission (SEC) Chairperson, Indrani Sugathadasa.

The capital market has also firmly established its profile as an indicator and facilitator of growth within the Sri Lankan economy. This unprecedented growth of the market has resulted in attracting a large number of new investors and issuers to the market, she said.

Sri Lanka, today stands at a juncture of key, unparalleled and unprecedented opportunity. Three decades of terrorist activities distorted Sri Lanka’s economy, hindered development, and reduced the country’s potential growth, the Chairperson said.

'However, since the end of the conflict in May 2009, the country’s economic fundamentals have improved significantly. The political and economic stability established in the country have pervaded all sectors recording growth as never before', she added.

The benchmark ASPI ended the year 2010 recording a significant growth of 96% or 3,250 points to close at 6,635.9 points. The highest ever level reached by the ASPI was 7,147.7 points which was recorded on 1st October 2010. Meanwhile the stocks in the more liquid MILANKA Price Index (MPI) increased by 83% or 3,212 points compared to the year 2009 to close the year at 7,061.5 points and reached its all time high of 7,829 points on the same day (1st October 2010).

At the end of the year 2010 the market capitalization of the CSE stood at Rs. 2.2 trillion which is an increase of more than 102% compared with the previous year.