Indian Firm Becomes First Foreign Broker to Enter Sri Lankan Market

India Infoline Limited (IIFL), an Indian-based stock brokering firm, became the first foreign brokerage firm to enter the Sri Lankan market after recently being licensed by the Securities and Exchange Commission of Sri Lanka.

The head of IIFL’s Sri Lanka Unit, Priyani Ratna-Gopal said, “We are bullish on the market's performance and have immediate funds available for investments from IIFL's own fund and investors who want to enter the Sri Lankan market."

The Colombo Stock Exchange granted IIFL provisional membership approval to begin its services earlier this year. During that announcement, the company’s executive director R. Venkataraman said, “Our Sri Lanka operations will enable us to leverage on our technology, particularly proprietary Internet trading platform, research capabilities and effectively cater to domestic and foreign investors in Sri Lanka.”

The company has recently been entangled in some controversy, battling a case in India’s Supreme Court against allegations of mismanaging funds, and last year, a company director was arrested on fraud charges, which the company has denied.

As it prepares to launch its services in Sri Lanka, Ratna-Gopal was optimistic about the country’s post-war potential.

“Sri Lanka has emerged as a highly promising destination for growth and investments,” she said. “India Infoline's proven experience and strength will help in setting up the broking and investment banking business in Sri Lanka at a fast pace and participate in its growth.”

To mark the company’s arrival in Sri Lanka, IIFL hosted the Discover Sri Lanka Conference on Monday in Colombo. The event brought together global investors, Sri Lankan corporate leaders and senior government officials.

Sri Lankan stocks, meanwhile, recorded a new high on Tuesday as the All Share Price Index surpassed 5,000 points, up nearly 48 percent since the beginning of the year. The market has been performing consistently well since the government’s defeat of the Liberation Tigers of Tamil Eelam in May of last year.