Dihan Dedigama

UNLOCKING FOREX INFLOWS

Economic and political reforms as well as debt restructuring are crucial

Stockbroking in a nutshell
To assess and track fluctuations in the country’s economy.

Its importance
Channelling foreign investment to Sri Lanka’s capital market.

Future forex influxes
If economic and political reforms are successful, and debt restructuring is fruitful, we may see foreign funds flowing back into Sri Lanka over the next few years.

Present endeavour
The focus is very much on expanding the local market segment.

Emerging trend
The use of AI in the decision-making process.

Desirable trait
Confidence

Reason for the above
Building confidence among foreign – as well as local – investors who wish to enter Sri Lanka about the benefits of investing in the right businesses.

Role of the sector
Stockbroking firms bring economic discussions and policy impacts into public debates to foster the development of responsible citizens.

Identifiable weakness
The stigma associated with the perception that the stock market is exclusively for the elite.

Remedial measures
Addressing and changing this mindset is crucial – especially since stock market investments are open and accessible to all.

Strategy to achieve such a mindset change
The Sri Lanka Social Security Board has actively facilitated market accessibility for everyone by addressing language barriers through translations.

What more…?
Expanding stock market awareness and its presence across the country.

Future trajectory
With new legislation modernising trading, increased awareness among the next generation and the integration of artificial intelligence, the future looks promising.

Macro challenges
Major obstacles have arisen due to increased volatility and foreign investor sentiment.

Factors affecting fluctuations in investments
Previously, stable investments fluctuated due to shifts in macroeconomic indicators such as interest rates and inflation.

Universal appeal
Ensuring accessibility to the stock market for all is a collective and ongoing priority for stakeholders.

Digital marketing in stockbroking
In terms of investments, it’s a double-edged sword – because on the one hand, it empowers us to educate the public on investments.

Flip side of the coin
The surge in personal social media marketing poses a risk of misinformation from unverified sources.

Operational challenges
Digital tools simplify work but require proper knowledge of usage for enhanced security – shifting societal norms and acknowledging digital formality as being equal to paper is essential.

International ramifications
Global events that impact commodity and crude oil prices, or freight or exchange rates, influence local businesses – this interconnection is unavoidable.

Evolving consumer behaviour
Recently, local retail interest in the stock market has surged – this is an encouraging trend since we aim to continue introducing investment opportunities to all.

Essential traits for a successful stockbroking career
Ability to keep learning, and having strong moral and ethical perspectives – and of course, patience.

Risk vs rewards
Relationships, like wealth, are built over the years – there is no quick fix without a risk.

Data analytics in reshaping strategies
This can’t be emphasised enough – our recent team expansion includes a data scientist as this is undoubtedly the key driver of the next phase of knowledge dissemination.

ESG integration in stockbrokerage practices
Prioritising environmental, social and governance (ESG) principles compels corporates to embrace transparency, which is seen as a positive shift by investors.

Benefits to investors from ESG
Businesses focussing on social impacts may cultivate a niche following.

Notable regulatory shifts in stockbroking
The most important shift in recent years is delivery versus payment (DVP) – this is a crucial confidence building measure among foreign and local institutional investors.

Vision for national financial technologies
Sri Lanka has a lot to learn from foreign markets and the good news is that over the past year, there’s been a commitment to introduce some of these systems to the country.

Example of the above
Introduction of legislation on regulated short selling.

Mantra for success
Commitment to work is essential for consistent success and resilience.

– Compiled by Dona Senara
Dihan Dedigama is a Director and the Chief Executive Officer of Softlogic Stockbrokers.