CSBA to double client base in two years | Sunday Observer
Reaches 25-year landmark

CSBA to double client base in two years

13 December, 2020
Kosala Gamage
Kosala Gamage

The Colombo Stock Brokers Association (CSBA), the apex body representing stock broking companies aims to double the active client base within the next two years in its endeavour to create a vibrant stock market. The Association marked a milestone in its journey this year turning 25. 

“Withstanding turbulent times all through the years has been a hallmark of the Association which is committed to offer a best in class service to investors,”  CSBA President Kosala Gamage said in an exclusive interview with Sunday Observer Business on Friday.

The chief of the stock brokers association is determined, though it looks a bit too ambitious, to double the number of active clients from 20,000 to 40,000 by the end of next year or by mid 2022.

To get there, he said the Association is working closely with all key stakeholders such as the Colombo Stock Exchange, the Securities and Exchange Commission of Sri Lanka (SEC) and the Government to which CSBA is grateful for accommodating some of its salient proposals in the 2021 Budget  and for the first time assigning a minister to develop the capital market.

“Our market is highly discounted with most stocks of blue-chips being undervalued and some even trading at attractive dividend yields. We need to attract at least 1 percent of the total Fixed Deposits which stood around Rs. 6.89 trillion at end 2019 which were getting over 10 percent interest rate though it is now down to around 5 percent to take advantage of undervalued stocks in blue chips and banks,” Gamage said, adding that the current health crisis is not a phenomena unique to Sri Lanka and that what is needed is for investors to stick to principles.

In this regard the CSBA chief said the role of the investor advisor community cannot be undermined as it all to do with the hard earned or retirement money of investors which needs to be taken care of with greater responsibility. “Investor advisors have a major role to play especially in dealing with new clients to ensure the money is invested in the right manner,” Gamage said, adding not everyone could be an investor advisor, who has to follow a well designed licensing process. 

Gamage said 2021 and beyond will be an exciting time as a host of new products are being designed by the CSE for which the CSBA will extend its fullest support.Formed in 1995, the CSBA consists of 18 member firms licensed and regulated by the SEC. The CSBA President said there had been many challenges over the past few years for the industry and the country. However, with the assurance of consistency in policy by the new dispensation we are optimistic of a better future for the industry.