CSE on target to demutualise, drive growth
Sri Lanka’s Colombo Stock Exchange (CSE) is aiming to demutualise its bourse into a limited company this year while trying to remove roadblocks for certain products that have been launched but have not taken off in the market.
The CSE is now an entity limited by guarantee with brokers as members, where profits are not distributed, and demutualisation will change it into a limited company. The CSE has been trying to demutualise for years, with several draft bills but the legislation has not yet passed in Parliament.
The bourse has also established a committee to investigate regulations to ease listings and is also exploring digital securities, derivatives, and strengthening risk management, CSE Chairman Dilshan Wirasekara told media at the ‘Invest Sri Lanka Media Conference’ held in Colombo on Tuesday. In response to why real estate investment trusts have not taken off despite being launched five years ago, he said that there are multiple issues such as the 4 per cent stamp duty on deed transfers, 15 per cent capital gains tax on transactions, and also Sri Lanka having low rental yields preventing the product from gaining traction. “We are discussing with the capital market regulator to take off these roadblocks.”
A new board called the Catalyst Board to facilitate the listing of State-Owned Enterprises (SOEs), as proposed in the 2025 Budget presented by the government was introduced by the capital market operator and now the framework for SOEs to list is in place.
The CSE achieved a 50 per cent return on the All Share Price Index in 2024, trailing only Pakistan and raising Rs.2.8 billion in equity, Rs.94 billion in debt, Rs.63 billion in rights, and Rs.14 billion in private placements. Mr. Wirasekara noted a strong start to the year, with higher turnover levels. However, the market movement remained subdued in early 2025, indicating consolidation.
The investor forum for Thursday and Friday will feature high-ranking officials, including the Governor of the Central Bank of Sri Lanka, and the Chairpersons of both the SEC and CSE. It will bring together key stakeholders from local and international markets, fostering connections and partnerships that drive mutual growth. The institutional investors, fund managers, and industry will number over 250 participants, CSE officials said. “Already around 90 foreign participants have confirmed. We also have about 150 local participants from a cross section of industries,” Rajeeva Bandaranaike CEO, CSE said.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!