Capital Raising - Sri Lanka

Sri Lanka

The total capital raised in the Capital Raising market market in Sri Lanka is expected to reach US$31.12m by 2024.
Traditional Capital Raising leads the market with a projected market volume of US$28.10m by 2024.
When compared globally, the United States is anticipated to generate the most capital raised, with US$195,400.0m in 2024.
Sri Lanka's Capital Raising market is experiencing a surge in private equity investments, signaling growing confidence in the country's economic potential.

Key regions: United States, China, India, Israel, Europe

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Analyst Opinion

The Capital Raising market in Sri Lanka is experiencing significant development and growth.

Customer preferences: In Sri Lanka, there is a strong customer preference for investing in the local stock market. This is driven by the desire to participate in the country's economic growth and take advantage of the potential returns offered by the stock market. Additionally, investors in Sri Lanka tend to prioritize long-term investments, seeking stable and consistent returns over time.

Trends in the market: One major trend in the Capital Raising market in Sri Lanka is the increasing number of Initial Public Offerings (IPOs) by local companies. This trend is driven by the growing confidence of businesses in the country's economic stability and potential for growth. Companies are looking to raise capital through IPOs to fund expansion plans, invest in new technologies, and increase market share. This trend is also fueled by the strong demand from local investors who are eager to invest in promising local companies. Another trend in the market is the emergence of crowdfunding platforms. These platforms provide a new avenue for entrepreneurs and small businesses to raise capital from a large pool of individual investors. This trend is particularly beneficial for startups and innovative ventures that may have difficulty accessing traditional sources of funding. Crowdfunding platforms also offer investors the opportunity to diversify their portfolios and support local entrepreneurship.

Local special circumstances: Sri Lanka has a well-developed and regulated stock exchange, the Colombo Stock Exchange (CSE), which plays a crucial role in the Capital Raising market. The CSE provides a transparent and efficient platform for companies to list their shares and raise capital. The regulatory framework in Sri Lanka ensures investor protection and promotes market integrity, further enhancing investor confidence in the Capital Raising market.

Underlying macroeconomic factors: The development of the Capital Raising market in Sri Lanka is supported by several underlying macroeconomic factors. Firstly, the country has experienced steady economic growth in recent years, driven by sectors such as tourism, manufacturing, and services. This economic growth has created opportunities for businesses to expand and attract investment. Additionally, the government of Sri Lanka has implemented policies to attract foreign direct investment (FDI) and promote entrepreneurship. These policies include tax incentives, streamlined business registration processes, and support for innovation and technology-driven industries. The government's focus on creating a favorable business environment has contributed to the growth of the Capital Raising market in Sri Lanka. In conclusion, the Capital Raising market in Sri Lanka is developing at a rapid pace, driven by customer preferences for investing in the local stock market, the increasing number of IPOs, the emergence of crowdfunding platforms, and the country's well-developed regulatory framework. The underlying macroeconomic factors, such as steady economic growth and government policies to attract investment, further support the growth of the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.