CSE announces constituent change in S&P SL20 index

The Colombo Stock Exchange (CSE) has announced changes in the S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2022 mid-year rebalance.

The inclusions to the index are Lanka IOC Ltd., Watawala Plantation PLC and Hela Apparel Holdings Ltd.  The exclusions are Tokyo Cement Co. Lanka PLC, National Development Bank PLC and Hatton National Bank PLC.  The exclusion and inclusion will be effective from today. The S&P SL 20 index includes the 20 largest companies, by total market capitalisation, listed on the CSE that meet minimum size, liquidity and financial viability thresholds. 
The constituents are weighted by float-adjusted market capitalisation, subject to a single stock cap of 15 percent, which is employed to reduce single stock concentration. 

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

To be eligible for inclusion, a stock must have a minimum float-adjusted market capitalisation of Rs.500 million, a six-month median daily value traded of Rs. 0.25 million and have positive net income over the 12 months prior to the rebalancing reference date.