Positioning Sri Lanka against the world

Market classification

What is the difference between emerging and frontier markets?

Emerging markets generally have larger, more liquid exchanges, broader foreign-investor access and more developed market infrastructure. Frontier markets are usually smaller and less liquid, with narrower investable universes and greater access, settlement or ownership constraints. Index providers can reach different classifications because their rules and review dates differ.

Emerging market

Typically deeper liquidity, greater institutional participation and easier access for international capital—while still carrying material economic and market risk.

Frontier market

Typically smaller and less frequently traded, with more concentrated indexes and higher practical trading or custody friction.