Constituent changes to S&P Sri Lanka 20 Index

The Colombo Stock Exchange (CSE) yesterday announced several changes in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2016 annual index rebalance.

As announced by S&P Dow Jones Indices, effective from 19 December (after market close of 16 December), Ceylinco Insurance PLC will be removed from the S&P Sri Lanka 20 index as it no longer qualifies for index inclusion. The replacement will be Teejay Lanka PLC.

The index includes the largest 20 stocks, by total market capitalisation, listed on the CSE that meet minimum size, liquidity and financial viability thresholds. 

The constituents are weighted by float-adjusted market capitalisation, subject to a single stock cap of 15%, which is employed to reduce single stock concentration. 

The S&P Sri Lanka 20 has been designed in accordance with international practices and standards. All stocks are classified according to the Global Industry Classification Standard (GICS), which was co-developed by S&P Dow Jones Indices and MCSI and is widely used by market participants throughout the world.

To be eligible for inclusion, a stock must have a minimum float-adjusted market capitalisation of Rs. 500 million, a six-month average daily value traded of Rs. 1 million, have been traded at least 10 days of each month for the three months prior to the rebalancing reference date, and have positive net income over the 12 months prior to the rebalancing reference date.

For further information, including the complete methodology, please visit: www.spindices.com.