The Securities and Exchange Commission (SEC) has liaised with the Central Bank in a novel scheme to entice new corporate listings.

"The Central Bank Governor has assured the SEC that if any company volunteers an Initial Public Offering (IPO) before the end of the year, he will make available funds from the Employee Provident Fund and Employee Trust Fund," Dr. Gamini Wickramasinghe, Chairman SEC said. He said this meant that the EPF and ETF will also invest in the IPOs.

He said presently these institutions can invest around two percent in the capital market (by law). "But these run into billions. The Central Bank is deploying EPF and ETF funds as a comfort factor for firms intending to go for IPOs, "he added. SEC sources said Ceylon Biscuits Ltd. (Munchee) and DSI are the next to issue IPOs.

Dr. Wickramasinghe also said the SEC is proposing an IPO fund and also gearing to de-mutualise the Colombo Stock Exchange (CSE) before the end of next year. "The government also owns part of CSE. The part that the state has, we are trying to secure into the intended IPO fund, after the demutualisation of the CSE. These monies can also be invested in the IPOs that are to come, "he explained. He said the SEC has brought SriLankan Airlines into the 'discussion platform' to go public "They are talking to us. We are seeing the possibility of listing Sri Lankan Airlines," he added.