CFA SOCIETY

Celebrating Excellence in Capital Markets: CFA Society Sri Lanka’s Enduring Commitment to High-Quality Research

The 12th annual CFA Society Sri Lanka Capital Market Awards – scheduled to be held on the 24th of June 2025, at Cinnamon Life at City of Dreams – is at the forefront of recognising and rewarding excellence in the local capital markets, whilst also setting the standards for capital market players.

Among the key awards presented at this signature event in the CFA Society Sri Lanka calendar, the Best Equity Research Team accolade was introduced at the CFA Society Sri Lanka Capital Market Awards back in 2014. The objective of the award is to reward teams that are working to develop research as an integral component of the investment decision-making process, targeting fundamentals-driven, informed and efficient capital markets, as well as to promote the provision of high-quality and timely research to all market participants.

Commenting on the evolution of skills and capabilities in the industry, particularly in a post-pandemic context, the Chairperson of the Best Equity Research Team Award Committee Chethana Ellepola, CFA, observes that research teams have evolved significantly in the way that they engage with investors.

“We have seen a notable evolution in the way that reports are structured and the manner in which data is presented. Research teams have become much better at using charts and infographics to communicate quickly with investors,” she says, while adding: “Teams are also adapting to changing technologies both to improve their speed in disseminating research to the market and to enhance investor education and outreach.”

However, Ellepola notes that the process of sending out a multitude of updates to clients may have led to a decline in in-depth research work where analysts provide meaningful insights to clients regarding stocks and sectors.

“Unfortunately, the focus on rapid turnaround has sometimes come at a cost. While speed and brevity are important, depth of analysis, breadth of coverage and deep industry knowledge remain the cornerstones of high-quality equity research. Similarly, brevity and speed should not come at the cost of accuracy, and attention to detail remains an important marker of quality,” she affirms.

Apart from the requisite technical skills, the Chairperson of the Best Equity Research Team Award Committee acknowledges that communication and presentation skills are vital to getting the message across in a clear and concise manner, be it verbally or by way of a report.

She also encourages research houses to expand their coverage in small and mid-cap companies to increase the breadth of coverage, which may prove to be an additional opportunity to increase market and sector knowledge within a team.

Meanwhile, reflecting on the loss of talent in the market, Ellepola asserts: “Research houses must be more committed to upskilling junior analysts or new analysts by conducting mandatory and formal training sessions before the work commences. With many senior analysts having left the market, knowledge has been lost, and this needs to be minimized.”

She urges research houses to facilitate analyst participation in the numerous training sessions that are made available by the CFA Society Sri Lanka, especially with regard to upcoming trends in the capital markets.

Turning to the CFA Society Sri Lanka Capital Market Awards, the Chairperson of the Best Equity Research Team Award Committee states that the feedback provided at the event should be considered carefully, with teams also making an effort to course correct as deemed necessary.

Her advice to the teams is to “always keep the investor in mind. Your role is to go the extra mile in genuinely educating and informing investors – both retail and institutional alike. Remember not to just simply relay information but to contextualize, analyze, and answer the basic ‘so what?’ question. It is your knowledge of the company, sector and macro economy that provides the context in which your clients make investment decisions. And with that comes a great responsibility.”

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials with more than 200,000 charterholders worldwide across 160 markets. Founded in 2001, CFA Society Sri Lanka is a not-for-profit organization supporting the professional development and advancement of CFA charterholders and candidates in Sri Lanka. Its membership of over 250 members consists of CEOs, CFOs, portfolio managers, equity analysts, banking professionals, investment advisors and other senior-ranking financial practitioners, and over 300 candidates, primarily from the financial sector.