"There is a clear lack of investment research in Sinhala (language)."
Gunawardane said he had been an investment analyst at four Sri Lankan stock brokering firms and has worked at short time at Aegis, an Australia based research firm.
Gunawardane said most brokers wrote research to drive sales and not based on fundamentals.
When the market declined, research also dried up he said.
Brokering firms also faced high staff turnover which also made research erratic, he said.Investors Eye will provide research in English and Sinhala. Though Sinhala speaking investors are increasing they did not have research back-up. Many large brokerages did not provide research services to small investors, he said.
"Ninety percent of research is currently only in English," Gunawardane said.
"Even if they want to pay and get they cannot buy research (in Sinhala)."
He said the firm will look at macro risks and also talk about downside risks for stocks.
It will provide research on real estate and Treasury bills in addition to stocks. The firm will offer subscription based services as well as individual consultancy.
Gunawardane said based on test marketing conducted by him, he believed that investors were willing to pay for independent research.
Gunawardane said 20 percent of the firm's revenue will go to charitable causes, including foreign scholarships for poor students, funding for elders' homes and spectacles for poor people.