"Socially responsible investment advocates argue that screening helps eliminate companies that have risks that are generally not recognized by traditional financial analysis," SEC chairman Udayasri Kariyawasam said.
"There are several instances indicating that investing in a social responsible manner does not mean a reduction in returns."
He said the KDL Domini 400 Social Index, launched in 1990 modeled on the Standard & Poor’s (S&P's) 500 index, tracks 400 listed US corporations that have adhered to certain standards of social and environmental excellence.
Socially responsible investments include avoiding investing in companies that produce or sell addictive substances like alcohol or tobacco or promote gambling.
And it means seeking out those committed to environmental sustainability, alternative energy and clean technology, Kariyawasam said.
Kariyawasam was speaking at a forum on alternative financing in Sri Lanka organized by RAM Ratings.
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