Changes in S and P Sri Lanka 20 Index

Colombo Stock Exchange (CSE) has recorded changes in the S and P Sri Lanka 20 index constituents made by S and P Dow Jones Indices at the 2013 annual index re-balance.

From tomorrow, Sri Lanka Telecom PLC and and Aitken Spence Hotel Holdings PLC will be removed from the S and P Sri Lanka 20 index as they no longer qualify for index inclusion.

The replacements will be Lanka Orix Leasing Co PLC (LOLC) and Lion Brewery Ceylon PLC (LION).

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

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

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

Chief Executive Officer, Colombo Stock Exchange, Rajeeva Bandaranaike said, "Launched in June 2012, the S and P Sri Lanka 20 index has gained acceptance among stakeholders. Since the index was designed to be used for index linked trading products the acceptance it has gained is important.

I am confident that the index will further enhance the visibility of our market among the global investor community."

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