How to Invest in the Capital Market
How to open an¬†IIA Account
An Inward Investment Account (IIA) is a special account designated for eligible investors to route funds to invest in Government Securities (Treasury Bills and Treasury Bonds), equity capital of companies incorporated in Sri Lanka and Units of Unit Trusts in Sri Lanka.
The returns of investments made through the IIA such as sale proceeds/dividends/ profits or other similar receipts can be remitted back without referring to the Exchange Control Department. An IIA account can be opened via any licensed commercial bank in Sri Lanka (Link to list:¬†http://www.cbsl.gov.lk/htm/english/05_fss/popup/licensed_cb.htm)
If you wish to conduct share transactions through the Colombo Stock Exchange you should open a Securities Account in the CDS through a Participant organization (a stockbroker or a custodian bank). Your CDS accounts should be operated through your Participant organization, and any changes to your account will have to be forwarded through the Participant. You cannot issue instructions directly to the CDS.
Direct Participants: The stockbrokers who are licensed by the Securities and Exchange Commission of Sri Lanka (SEC) and are members of the CSE
Indirect Participants: These are the banks registered under the Banking Act of Sri Lanka
Opening a CDS Account
> Non-Resident foreign individuals
> Non-Resident Sri Lankans
> Non-Resident Corporates/Foreign Institutions
> Non-Resident Collective Investment Schemes/Funds
Sri Lanka Standard Time (GMT+5:30)
|¬† Market phase||Hours|
|¬† Open auction call||9.00 am-9.30 am|
|¬† Regular trading||9.30 am-2.30 pm|
|¬† Market close||2.30 pm|
In the event that the S&P SL20 Index drops 5% within a day from the previous market day’s close, a “Market Halt” is imposed on all equity securities for a period of 30 minutes. If the above scenario takes place at 2.00 pm or later, the market is halted and closed at 2.30 pm. Broker firms may cancel any pending orders.
Further details on trading sessions:¬†https://www.cse.lk/home/tradingSessions
Transactions up to Rs. 100 Million will be subject to a transaction cost of 1.12%, complied as follows:
Transaction Costs for transactions over Rs. 100 Million will be applied on a step up basis
*Brokerage fees for transactions over Rs. 100 Million are indicated as a floor brokerage commission; actual fees may exceed this percentage.
¬†List of Unit Trust Companies and Funds
Information on Unit Trust Companies and the type of funds operating in Sri Lanka could be obtained through¬†http://utasl.lk/member-company/