CSE announces constituent changes to S&P SL20 index

The Colombo Stock Exchange (CSE) announced the following changes in the S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2021 year-end index rebalance. 

The exclusions as announced by S&P Dow Jones Indices, effective from December 20, 2021, are Richard Pieris & Co. PLC and Brown & Company PLC, while the inclusions are Commercial Leasing and Finance PLC and LOLC Finance PLC.

The S&P SL20 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.