Commodities - Sri Lanka

Sri Lanka

The nominal value in the Commodities market is projected to reach US$81.84bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.91% resulting in a projected total amount of US$104.00bn by 2029.
The average price per contract in the Commodities market amounts to US$0.14 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 612.70k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the lush landscapes and vibrant culture of Sri Lanka, the Commodities market is experiencing a notable shift in recent years.

Customer preferences: Investors in Sri Lanka are increasingly showing a preference for Commodities as a financial instrument due to its potential for high returns and diversification benefits. The allure of trading in Commodities lies in its ability to hedge against inflation and geopolitical uncertainties, making it an attractive option for risk-averse investors seeking stability in their portfolios.

Trends in the market: One of the prominent trends in the Commodities market in Sri Lanka is the growing interest in digital trading platforms, enabling investors to access a wide range of Commodities with ease. This trend is in line with global practices, where technology plays a pivotal role in democratizing access to financial markets. Additionally, there is a noticeable uptick in the trading volume of Commodities such as gold and oil, reflecting investor sentiment and market dynamics.

Local special circumstances: Sri Lanka's strategic location along key shipping routes and its historical significance as a trading hub have contributed to the development of a robust Commodities market. The country's strong ties with global trading partners and its well-established financial infrastructure provide a conducive environment for investors looking to participate in Commodities trading. Moreover, the government's efforts to promote financial literacy and investor education have further fueled interest in the Commodities market among the local population.

Underlying macroeconomic factors: The economic stability and growth prospects of Sri Lanka play a crucial role in shaping the Commodities market. Factors such as inflation rates, interest rates, and foreign exchange fluctuations influence investor behavior and market dynamics. As the country continues to strengthen its position as a regional economic hub, the Commodities market is poised to witness further growth and innovation in the coming years.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to 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 particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.