Colombo stock market is one of the best stock markets in the world.After the 30 years of old terrorist conflict, on 18^TH of may 2009 srilankan president mahinda rajapaksha wiped out the most dangerous and powerful terrorist  organization in this world completely. We have to salute the president, all the military forces, intelligence and also the defense secretary. Before this day we saw uncertainty and we never saw peace, political stability, economic growth and foreign exchange stability. From 18^TH of May 2009 srilankan history began a new era.

If we look at the srilankan future we can see strong political stability, 100% peace and mega development projects. I am sure within 10 years srilankan will face a fast economic growth and gradually the country will get systematic and we are capable of reaching the developed countries status. The reason for this is our geographical position economically and security wise. Our position in the world power struggle takes an important place.

In the world transportation system, if srilankan becomes a transit point it will be a benefit to all the people who are engaged in transportation. Srilankan also has a possibility to become a brilliant financial hub in the south East Asian region.

If we are analyzing the world economic situation, developed countries are struggling to get off their financial crisis and recession.  At  the same time huge funds circulating around the world looking at the opportunities to protect their funds depreciation and to grow. After the long run war, srilankan land has a lot of opportunities to establish those funds. Because everything is cheep such as labour and land.

These days srilankan government develops the infrastructure facilities within two or three years, the time cost spend to go to any location is decreased. Then opportunity hunters jump to the srilankan land to start the business. There are lots of opportunities in insurance and finance, hotels and travel, hydro power, goods and services and technology sectors.

When these opportunities are grabbing, we can see a rapid growth in the srilankan market. Within five to ten years all share price index can move up over the 10,000 mark. But at the same time we have to expect profit taking situation and technical corrections. But long term trend is upside. So, if any investor is chasing behind the speculative shares and if he loses the ground because of the profit taking situation, there is nothing to be panic about.

 If he has a holding power he must hold his investment. The reason is, within 90 days the price can go up from that profit taking point. Main reason is last year the world financial crisis situation, the world and srilankan stock markets were badly affected. So many shares were trading with very low prices compared with the asset values.

After May 18^TH srilankan investors got hope and confidence about the future. At the same time fresh funds also came in to the srilankan market. Interest rates come down, bond market funds also tried to get the stock market opportunities. Then we are able to see a very fast and rapid growth in the future market and also the turn over level grows day by day.

 If you are a long term investor, buy and hold. You can get a huge return within few years. If you are a trader, you have to be very sensitive with stock support level and resistance. If you are a long term investor and a trader, within your portfolio keep 50% for long term and use 50% for trading respect to the technical. You will get a win win situation. Don’t listen to too many unnecessary rumors. Think about reality. Try to understand price movement patterns. Get your own decisions. Long term trend is up means that its your insurance premium.

 At this point, some organizations or brokers can say “market correction or some stock prices will decrease” this is for their personal gain.  Think about that information many times. And don’t try to be a broker’s muphat. Because money is yours and the profit and loss is also yours. Think twice that brokers and investors desires are different. You need profit and they need commission. Listen to rumors very carefully. Don’t forget, if you are holding long run, you will be recovered.

 My personal opinion is, before 2010 the par value which was 10/= and trading below the par value. It must reach the par value or over the par value. And the par value which was 1/= can reach to around 4 to 5/=. And blue chips can go up to very high prices.