How CSE is designed to fail retail investors

Six Charges, 700% More Expensive:

- 

Imagine walking into two shops selling the same product. In the first shop, you pay a simple 0.6% fee. In the second shop, you're hit with a bewildering array of charges from multiple entities, and by the time you're done, you've paid 2.27%. And that's for a complete transaction: buying and selling.

The Shocking Numbers

Sri Lanka loves to say it wants to "develop the capital market." But the way we charge investors tells the real story - a story of policy confusion, fee-layering, and a system designed to favor big players while suffocating small retail investors.

The evidence isn't hidden. It's printed clearly in every contract note that brokers issue.

Think about what this means in real terms. If you're a teacher, government servant, or small business owner investing Rs. 100,000 in shares, you'll pay approximately Rs. 2,270 just to complete a buy-sell cycle in Sri Lanka. In New Zealand, that same transaction costs just Rs. 300.

Sri Lanka is nearly four times more expensive than New Zealand - for the exact same act of investing.

Death by a Thousand Cuts

The problem isn't just the total amount - it's the sheer complexity. While New Zealand streamlines everything into one clean charge, Sri Lankan investors face a labyrinth:

• Brokerage (negotiable, but only if you're wealthy)

SEC Fee (Security Exchange Commission)

• CSE Fee (Colombo Stock Exchange)

CDS Fee (Central Depository Systems fees)

• STL (Share Transaction Levy) Clearing Fee

• Foreign Brokerage for foreign transactions

• Various "special fees" are added periodically