How to invest in the Colombo Stock Exchange (CSE)

The Colombo Stock Exchange (CSE) is the primary stock market in Sri Lanka. It plays a crucial role in the country’s economy by connecting local companies with investors. More people, both domestically and internationally, are interested in investing there, particularly with regional economic changes. That’s where this guide comes in. This guide is solely focused on guiding you through the process of setting up a trading account in Sri Lanka.

Overview of the Process

Step One : Choosing your Stock Broker

Choosing your stockbroker is the most crucial step in the setup process as it determines several factors in your investment journey. At the time of writing there are 27 licensed stock brokers available in Sri Lanka and you MUST sign up with one them if you are to trade in the Sri Lankan Stock Market. Here are some key details you need to consider when selecting your stock broker.

1. Brokerage/ Trading Charge

All the licensed brokers charge the same rate depicted below. Due to this brokerage charges should not affect your choice in broker. The charges are as follows:

Charges
Transactions up to Rs 100 Mn
Brokerage Fees	0.640%
CSE Fees	0.084%
CDS Fees	0.024%
SEC Fees	0.072%
Share Transaction Levy	0.3%
Total	1.12%

Charges
Transactions Over Rs 100 Mn
Minimum Brokerage Fees (Floor)	0.2%
CSE Fees	0.0525%
CDS Fees	0.0150%
SEC Fees	0.0450%
Share Transaction Levy	0.3%
Total	0.6125%

2. Required Minimum Investment

This is honestly one of the biggest barriers for most people getting started. Some brokers ask for a minimum investment as high as Rs. 100,000, while others are okay with as little as Rs. 5,000. Unfortunately, this number keeps changing based on demand and a bunch of other factors, so there’s no proper way for me to provide you with a list of minimum values at the moment.

3. Research Quality

The research quality of the Stock Broking Firm is another huge factor that you should consider. Research quality includes factors such as the frequency of evaluation reports , market updates , news updates etc.

Most brokers offer research, but the quality and accessibility can vary significantly from one to another. From my personal experience with three brokers, I’ve found notable differences. First Capital Holdings PLC stands out by offering top-tier research that’s completely free and accessible to the public—something I greatly appreciate. Bartleet Religare also provides solid research; however, access requires signing up with them. Capital Alliance offers research through their Analytical Portal, but in my experience, it’s not as user-friendly—I’d personally love to see it integrated into their mobile app for easier access.

4. Systems in place and Investment Advisors

The systems in place are also a huge factor to consider when selecting a stock broker. Almost all brokers provide online trading at this point. Some brokers, however, also assign you an advisor, while others don’t. There are advantages and disadvantages to this. One of the main advantages of having an advisor is—well, to get advice. However, don’t expect personally curated recommendations with lightning-fast response times.

The main disadvantage of having an advisor is the withdrawal system. When you have something like an advisor, withdrawing funds from your brokerage account usually has to be done through them via email. My personal experience with this is that it’s cumbersome at best—full of delays and the constant need to follow up on the progress of the withdrawal.

Brokers that don’t assign you an advisor typically provide an online portal where you can request withdrawals directly. I personally found this way easier than emailing. An example of a brokerage company that does this is CAL.

5. List of Licensed Stock Brokers in Sri Lanka

• ACAP Securities
• ACS Capital
• Almas Equities
• Ambeon Securites
• ASHA Securities
• Asia Securities
• Bartleet Religare Securities
• CAL Securities
• Capital Trust Securities
• CT CLSA Securities
• Enterprise Ceylon Capital
• First Capital Equities
• First Guardian Securities
• HNB Stockbrokers
• JB Securities
• John Keels Stock Brokers
• Lanka Securities
• LOLC Securities
• Nestor Stockbrokers
• NDB Securities
• Richard Pieris Securities
• Sampath Securities
• Senfin Securities
• Softlogic Stockbrokers
• Somerville Stockbrokers
• WealthTrust Securities

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That’s all the critical information you need to choose the perfect stock broker for you. Listed below are all the licensed brokers available in sri lanka. I’ve linked them to their pages to make research a bit easier for you. Once your done selecting the broker , you can continue on to the next step.

Step Two : Creating your CDS and CSE Account

The next step is setting up a Central Depositary System (CDS) account and Colombo Stock Exchange (CSE) account. Your selected broker actually handles the entire CDS creation process so there’s not much to do here. The process takes about a week or more but is relatively frictionless and easy. This process is done entirely online and the broker will email you the account details .

Your CSE account is an optional account you’ll need to access the CSE app and website. I highly recommend setting it up now, as it gives you access to subscribing to IPOs and direct access to company information—both of which are essential for future investment prospects. The process is quite simple, but you may have to wait until you receive your CDS account details from your broker, as it’s required for the setup.

Step Three: Setting up your ATrad Account / Direct FN Account

Shortly after receiving your CDS account details via email, you’ll get another email with your ATrad credentials. This gives you access to the ATrad platform. You can access ATrad through their website or mobile app. I highly recommend the mobile app for beginners, as the website tends to be quite complicated—especially if you’re just starting out.

Direct FN is another application that some brokers use as an alternative to ATrad. As I have not personally used the software , I can’t comment on the setup process. However it probably follows the same procedure as ATrad.

At this point, you’re mostly done with the setup process. All that’s left is to transfer funds into your brokerage account.

Step Four: Transferring funds into and out of your ATrad Account (Brokerage Account)

For this final step, the procedure might differ slightly depending on your stock broker. But the general process involves transferring the amount of money you want to invest into a bank account provided by your broker. When making the transfer, you’ll usually need to include your NIC number or CDS account number in the transfer description.

After that, some brokers require you to email them the transfer receipt as proof, while others don’t. Either way, you’ll typically see the funds reflected in your ATrad account within about 30 minutes. (Just make sure to do the transfer during regular working hours.)

As for withdrawing funds, we already touched on this in the broker selection section—but here’s a quick recap. If your broker provides an advisor, you’ll usually need to email them to initiate a withdrawal, which can be a bit tedious. On the other hand, if you’re with a broker that doesn’t assign advisors, you’ll often be able to withdraw directly through the online platform or portal—much more convenient.

And that’s about it for this post! This should hopefully get you all set up to trade on the Colombo Stock Exchange. Now all that’s left is to do your research and pick the stocks that fit your goals.

If you have any questions about the setup process, feel free to drop them in the comments below!

For complete beginners, I’ve also writing a guide on ATrad Mobile Basics to help you get familiar with the platform. I plan to cover basic trading concepts as well in the Learn & Grow section—so do check that out if you’re interested!

That’s all for now! Thanks for Reading!