Colombo Stock Exchange adopts GICS

State Minister of National Policies & Economic Affairs Niroshan Perera launching the GICS as CSE Chairman Vajira Kulatilaka and CEO Rajeeva Bandaranaike look on

The Colombo Stock Exchange (CSE) is adopting the Global Industry Classification Standard (GICS) to classify its listed companies along with S&P/CSE cobranded sector indices.

The Global Industry Classification Standard (GICS) was jointly developed by Standard & Poor’s and MSCI Barra to meet the global financial community’s need for one complete, consistent set of global sector and industry definitions. The world’s leading financial professionals across all investment disciplines, including asset managers, institutional investors, consultants, and researchers have adopted GICS as the classification standard.

The CSE intends to consider GICS as an alternative classification of companies for a pilot period of one year during which period the current classification would also be maintained alongside the proposed GICS. This will provide adequate time for the stakeholders to be comfortable with GICS facilitating a smooth transition. The pilot period commenced on 2 December and the classification of companies with market data can be accessed through www.cse.lk.

CSEChairman VajiraKulatilakacommented: “We believe that the adoption of GICS by CSE is very important step for sector investing and portfolio diversification. This globally accepted standard not only will enable foreign investors to analyse the sector diversity of the Sri Lankan equity market but also local investors to truly diversify.”

CSECEO Rajeeva Bandaranaikecommented: “We are sure that the decision to adopt GICS would enhance the market infrastructure and help the investors to better understand the characteristics and change of industry structure. The gradual implementation of the project will help smooth transition from the existing classification to GICS.”

S&P Dow Jones Indices Head of Equity Indices Product ManagementManaging DirectorAlka Banerjeecommented: ”We are proud to be extending a very successful and strong relationship with the CSE, and look forward to being a part of the Sri Lankan equity market growth journey.” 

The Colombo Stock Exchange (CSE) operates the only share market in Sri Lanka and is responsible for providing a transparent and regulated environment where companies and investors can come together. The CSE is a company that is limited by guarantee established under the Laws of Sri Lanka. The CSE is licensed by the Securities and Exchange Commission of Sri Lanka (SEC) and is a mutual exchange consisting of 15 Members and 20 Trading Members. All Members and Trading Members are licensed by the SEC to operate as stockbrokers.