CSE Archives

April 8, 2024

The Securities and Exchange Commission of Sri Lanka (SEC) in collaboration with the Colombo Stock Exchange (CSE) hosted several impactful teacher training programs for teachers of the established 100 Capital Market Clubs across the country. These teacher training programs were conducted in all three languages from the 13^th March to 4^th of April at teacher training centers across the nine provinces of country.

The ‘Capital Market Club’ program is a strategic initiative designed in collaboration with the Presidential Secretariat and the Ministry of Education as well, aimed at fostering financial literacy throughout the education system of Sri Lanka.

The teacher training programs work as the initial step towards equipping the teachers overseeing the hundred capital market clubs with the crucial knowledge necessary to impart on students, so they may emerge as informed investors. The teachers were given a complete workshop, educating them on the regulatory environment, the stock market, the range of available capital market products as well as unit trusts.

By bridging the gap between theoretical instruction and practical experience, this project seeks to empower students with a profound understanding of investment dynamics and the workings of the capital market. For this purpose, the SEC and CSE have created a carefully curated activity plan for the capital market club students, which the teachers were briefed on.

One such activity is an inter-school quiz competition. The event is scheduled to take place in June later this year and expected to attract teams representing each of the capital market clubs across the 100 schools they are established in. Another activity expected to engage the club’s students is a ‘Virtual Stock Market Game’, where the winners of the activity will receive the opportunity to visit Singapore, as expressed by His Excellency, president Ranil Wickremesinghe.

The SEC and CSE are committed to ensuring that this initiative is a success, ensuring the country will benefit from a far larger pool of educated investors in the coming years.

April 2, 2024

The Securities and Exchange Commission of Sri Lanka (SEC) in collaboration with the Colombo Stock Exchange (CSE) conducted an Investor Forum held in Dambulla on the 27^th of March at the Hotel Sannasa – Dambulla.

The forum was organized with the objective of raising awareness on the importance of investor education with regard to the investment opportunities that exist in the Stock Market and investor protection. With the aim of educating the business community of the Dambulla district, the forum attracted over 60 participants, providing valuable insights to both potential and existing investors in the region.

The forum offered valuable insights, educating investors on how they are able to safeguard their interests. At the investor forum, Mr. Thusitha Meegahakumbura, Branch Manager of the CSE Kurunegala Branch, provided a basic knowledge of investments, encompassing the process of investing as well as the pros and cons of investing in the Stock Market.

Educating investors on the role of the SEC in the market, as well as diving into the intricacies of investor protection, SEC’s Manager of External Relations, Mr. Nimal Kumarasinghe, addressed the gathering.

Next, a session to create awareness on the CSE Mobile App was conducted by the Manager of the CSE Kandy Branch, Mr. Dhananjaya Abeysiriwardana. Furthermore, an analysis of the sectoral performance and market opportunities was presented by the Director Sales of Acuity Stockbrokers (Pvt) Ltd, Mr. Kapila Pathirage.

Conducting an Introduction to Unit Trust Investment, the Relationship Manager of NDB Wealth, Mr. Rukshan Peiris addressed to the attendees as well.

Bringing the forum to a close, an interactive panel discussion was held with the participation of Mr. Nimal Kumarasinghe, Mr. Thusitha Meegahakumbura, Mr. Kapila Pathirage as well as CSE’s SVP of Marketing, Mr. Niroshan Wijesundere, providing an opportunity for participants to clarify any doubts from the panelists. The participants were also given the opportunity to meet Investment Advisors from stock brokerage firms.

The SEC and CSE have planned more investor forums this year in locations such as Ambalantota, Ratnapura, Gampaha, Matara and Colombo, in order to create awareness about investor education and protection whilst highlighting the importance of financial literacy.

March 25, 2024

The Securities and Exchange Commission of Sri Lanka (SEC) in collaboration with the Colombo Stock Exchange (CSE) conducted an Investor Forum held in Nuwara Eliya on the 21^st of March at the Hotel Araliya Red – Nuwara Eliya.

The forum was organized with the objective of raising awareness on the importance of investor education with regard to the investment opportunities that exist in the Stock Market and investor protection. It attracted over 200 participants, providing valuable insights to both potential and existing investors in the region.

The forum consisted of two sessions which was in Tamil and Sinhala medium in order to ensure that investors were provided with a beneficial forum devoid of language barriers.

A basic introduction to investing at CSE, including the process of investing as well as the pros and cons of investing in the Stock Market were delivered by the Branch Manager of the CSE Batticaloa Branch, Mr. Sivananthan Raman Muthukrishnan, during the first session, and was reiterated by Mr. Dhananjaya Abeysiriwardena, the Branch Manager of the CSE Kandy Branch during the second session.

Educating investors on the role of the SEC in the market, SEC’s Senior Assistant Manager of External Relations, Mr. Imran Ahamed, and Manager of External Relations, Mr. Nimal Kumarasinghe, addressed the gathering in the Tamil and Sinhala medium sessions respectively.

A presentation to create awareness on the CSE Mobile App were conducted by representatives of the Colombo Stock Exchange, Ms. Jenifar Sharmila Sivanesarajah and Ms. Shanika Ramanayake, subsequently at each session.

Furthermore, an analysis on the Sectoral Performance & Market Opportunities was presented by Mr. Arumainayagam Visaahan, Research Analyst at Asha Securities Ltd during the first session and Mr. Kapila Pathirage, Sales Manager at Acuity Stockbrokers (Pvt) Ltd during the second session.

Conducting an Introduction to Unit Trust, representatives of the CTCLSA, Mr. Kuhan Vinayagasundaram and Mr. Pasan Abeygunawardane spoke at each session respectively.

Bringing the forum to a close, an interactive panel discussion was held with the participation of Mr. R M Sivananthan, Mr. Imran Ahamed and Mr. A Visaahan at the Tamil medium session as well as Mr. Dhananjaya Abeysiriwardena, Mr. Nimal Kumarasinghe and Mr. Kapila Pathirage at the Sinhala medium session, providing an opportunity for participants to clarify any doubts from the panelists.

The participants were also given the opportunity to meet Investment Advisors from stock brokerage firms.

February 28, 2024

The Colombo Stock Exchange (CSE) organized a forum titled “Redefining the Trajectory of Your Business” in collaboration with the U.S. Agency for International Development (USAID) CATALYZE Sri Lanka Private Sector Development (PSD) Activity. Held on February 12th, 2024, at North Gate Hotel – Jaffna, the event aimed to provide small and medium enterprises (SMEs) with crucial insights into capital-raising opportunities available at the CSE, specifically through listing on the Empower and Diri Savi Boards.

These boards offer dedicated listing platforms for SMEs, focusing on sectors like agribusinesses, livestock, energy generation, ICT, and tourism-related ventures. The program, tailored to the needs of companies in Jaffna, provided guidance on exploring capital-raising avenues effectively through panel discussions and interactive sessions with industry experts, investment advisors, CSE representatives, and USAID CATALYZE PSD representatives.

Delivering the opening remarks, Mr. Niroshan Wijesundere, Senior Vice President – Marketing for CSE began with, “We see potential in the Northern Region for businesses to thrive. We are conducting this forum with the aim of creating awareness and are glad to be able to provide this opportunity to MSMEs to further support them in their objectives to raise capital.”

Mr. Wijesundera also added that “Micro- small & medium sector enterprises in Northern Sri Lanka could be seen as a driving force for inclusive economic growth, employment generation and poverty reduction, and overall development of the North. Given its proximity to India and looking at export markets, there is immense potential for SMEs to expand their businesses and capitalise on numerous opportunities of listing on the CSE, as an alternative means of raising capital to unlock these prospects. Over the past 6 years, listed entities have raised over four hundred eighty billion rupees (480.45 Rs. bn) via the stock market. It is evident that listed entities are utilizing the capital markets for the growth of their businesses.”

“The United States supports the free flow of capital to help grow Sri Lanka’s economy,” USAID Director of Economic Growth Christopher Powers said in a statement. “Through CATALYZE PSD, USAID has supported companies in the food, agricultural, and ICT sectors in the Northern Region. We also encourage other companies to explore funding options, whether through the Colombo Stock Exchange or by engaging with USAID PSD for alternative opportunities”.

Conducting a session on ‘Capital Mobilization through the CSE’, Mr. Vasantha Kumar, Assistant Vice President, Acuity Stockbrokers (Pvt) Limited, stated, “SMEs in Sri Lanka usually maintain an annual turnover not exceeding LKR 750 million. These enterprises need further funding for expansion, sustainability, or to bring new products to market. The CSE offers a platform for SMEs to raise capital by listing their shares.”

He further added, “In addition to capital raising, a listing will offer a plethora of benefits for companies, such as enhanced image, attracting and retaining quality talent, improvement in corporate governance as well as access to strategic investors. Several successful SME IPOs have taken place recently, highlighting the diversity and potential that can be realized, and opportunities for growth available within the Sri Lankan market through the CSE. These include companies such as Kapruka Holdings PLC, Windforce PLC, Prime Lands Residencies PLC, Exterminators PLC, EML Consultants PLC, and Alpha Fire Services PLC, across various boards such as the Main Board, Diri Savi Board, and the Empower Board.”

The forum featured a panel discussion titled “The Journey Towards Listing & Life after Listing,” with Mr. Jude Fernando, Inclusive Finance Director, PSD; Mr. Vasantha Kumar, Assistant Vice President, Acuity Stockbrokers (Pvt) Limited; Mr. Rohan Senewiratne, Managing Director, Atarah Capital; Mr. Nadarajah Gunabalan, Consultant – V-Share Ventures (Pvt) Ltd; Ms. Punyamali Saparamadu, SVP – Commercial, CSE, with Mr. Shanmukananthan Sabananthan, Branch Manager – Jaffna, CSE, serving as the moderator. Attendees appreciated the discussion for its helpful insights.

February 21, 2024

Image-SEC-and-CSE-host-the-1st-Investor-Forum-for-the-year-in-Vavuniya.-1280x612.jpg

The Securities and Exchange Commission of Sri Lanka (SEC) in collaboration with the Colombo Stock Exchange (CSE) conducted the first Investor Forum for the year 2024 on the 17^th of February at the Hotel Oviya – Vavuniya.

The forum was organized with the objective of raising awareness on the importance of investor education and investor protection. It attracted over 130 participants, which included both existing and potential investors, providing valuable insights.

Mr. Shanmukananthan Sabananthan, the Branch Manager of the CSE Jaffna Branch, delivered a basic introduction to investing at CSE, including the process of investing as well as the pros and cons of investing in the Stock Market. A session to create awareness on the CSE Mobile App was conducted by Mr. Nathuram Sivarajah from the Colombo Stock Exchange.

Furthermore, an analysis on the Sectoral Performance & Market Opportunities was presented by Mr. Arumainayagam Visaahan, Research Analyst, Asha Securities Ltd.

A panel discussion was held with the participation of Mr. Sabananthan, Mr. Visaahan, and Mr. Imran Ahamed, Senior Assistant Manager of External Relations, SEC, providing an opportunity for participants to clarify any doubts from the panelists.

The participants were also given the opportunity to meet Investment Advisors from stock brokerage firms.

The SEC and CSE have planned more investor forums this year in locations such as Dambulla, Nuwara Eliya, Ambalantota, Ratnapura, Gampaha, Matara and Colombo, in order to create awareness about investor education and protection whilst highlighting the importance of financial literacy.

February 21, 2024

Image-The-Colombo-Stock-Exchange-Launches-version3-of-its-Business-Intelligence-Dashboard-CSE-Market-IQ-MIQ.jpg

The Colombo Stock Exchange (CSE) recently launched the 3^rd version of its internal business intelligence dashboard coined the CSE ‘Market IQ’ (MIQ). This advanced version of the business intelligence dashboard, which was specifically designed to convert analysed data into insights for the convenience of internal stakeholders, is a major step into the future of market analysis and reporting.

As the operator of the Stock Exchange in Sri Lanka, the CSE is statutorily mandated to operate an orderly and efficient securities market. The CSE’s ‘Market IQ’ aims to further facilitate this mandate by integrating key information into a single platform that can be accessed easily, facilitating accuracy and efficiency.

The advanced level of this dashboard further elevates the effectiveness of managerial decision-making by providing a seamless understanding of investors’ trading behaviour, paving the way for strategic decisions aligned with investor needs.

With the launch of the new market IQ version3 the CSE’s branch network will be empowered. This strategic move ensures that each branch can better serve its respective target groups, efficaciously.

The dashboard encompasses several crucial categories, providing a daily market overview, market performance, turnover profile, historical report, investor profile, listing profile, global markets, and statistics summary.

This CSE Market IQ (MIQ) version3 will change the way internal stakeholders access and interpret market data. The CSE hopes to elevate the level of the Business Intelligence Dashboard further in the near future and incrementally make continuous improvements in a manner that will facilitate further conclusive data analysis of the capital market.

February 19, 2024

The Colombo Stock Exchange (CSE) signed a Memorandum of Understanding (MoU) with the Sri Lanka Institute of Marketing (SLIM) recently to enhance collaborative efforts in advancing educational initiatives and professional development. This effort will ultimately provide students with the enhanced access and preparation necessary to recongise and capitalise on opportunities within the financial sector.

The objective of this MOU is to include a Capital Market Module for the Post Graduate Diploma in Marketing program and facilitate guest sessions in other courses of SLIM, designed and offered through the CSE Branches in collaboration with SLIM.

These Educational Courses will be co-branded by both SLIM and CSE, signifying the collaborative nature of this initiative. Additionally, the CSE will conduct the necessary Marketing activities at regional levels to attract students.

Commenting on the partnership, the CSE CEO, Mr. Rajeeva Bandaranaike, said, “Improving financial literacy will have a direct impact on financial markets. The lack of information and understanding is one of the reasons for hesitancy to enter the capital market. Partnerships like this will go a long way to strengthen that area ”

He further said, “We welcome this initiative because we see a lot of potential in working together, not only as it is mutually beneficial to both our institutions but also to the industries that we serve in as a whole.”

Thanking all parties that played a key role, for their invaluable contributions in making this MoU possible, Prof. Jayantha Dewasiri stated, “With this initiative, we have set our sights on further expanding our network. Our objective is not only to advance marketing but also to promote financial literacy and capital market modules throughout our programs offered across the CSE branch network.”

February 2, 2024

The captioned units of the CAL Five Year Optimum Fund were officially listed on the Colombo Stock Exchange (CSE) on 1^st February 2024. Accordingly, 193,904,428 units of the fund were listed by way of an Introduction. This is the first unit listing in over a decade, warranting the occasion to be marked with a special Bell Ringing Ceremony.

The event was attended by Capital Alliance Investments, CEO, Mr. Gayan De Silva; Capital Alliance Partners, CEO, Mr. Nishok Goonasekera; Capital Alliance Investments, Assistant Vice President, Ms. Cheryl Pasker; CAL Group, Chief Risk Officer, Ms. Sharmali Perera; Capital Alliance Partners, Vice President, Mr. Praveen Kanagasabai and Capital Alliance Partners, Associate, Mr. Malik Jameel.

The CSE was represented at the event by its Chairman, Mr. Dilshan Wirasekara; Chief Regulatory Officer, Mr. Renuke Wijayawardhane, and the CSE Senior Management.

Delivering opening remarks, Chairman of the CSE, Mr. Dilshan Wirasekara, began by congratulating Capital Alliance Investments Ltd. and went on to say, “It is indeed a unique day today as we list the CAL Five Year Optimum Fund, the only active listed fixed income closed-end fund that is available in the Colombo Stock Exchange.”

Mr. Wirasekara further said, “The CSE has always wanted to encourage the Unit Trust industry because we believe that it is probably the best way to broaden the base of retail investors and an ideal vehicle for investors to enter the exchange. We’ve seen huge growth in the Unit Trust industry, and it’s heartening to know that new funds are coming to the forefront. I believe it will bode well for the industry as a whole.”

Thanking the CSE and the CAL Investment Banking team for their commitment to getting this fund listed, Mr. Gayan De Silva, CEO of Capital Alliance Investments, stated, “It is with great pride that I announce the listing of the CAL Five Year Optimum Fund. At CAL, our entire value system is built upon making sure we enhance the capital markets, and the listing today demonstrates our continuous commitment to be one of the most dynamic fund managers in Sri Lanka. We believe capital markets act as an intermediary in transferring wealth from financial markets to the real economy, and thereby pushing economies into prosperity.”

He further said, “In terms of trading, the investors of a closed-end fund will be able to buy and sell units based on the market price, similar to a stock. It is an amazing opportunity for investors to use this platform for better portfolio diversification. I also believe the launch of this fund will increase the product offerings of the CSE, thereby increasing market participation, which is critical for the development of our capital markets.”

The CAL Five Year Optimum Fund is a closed-end fixed income unit trust scheme with a life span of five (5) years approved by the Securities and Exchange Commission of Sri Lanka (SEC). Capital Alliance Investments Limited has been granted approval by the Commission to establish, manage, operate, and market the fund. The fund is set up by a Trust Deed dated June 07th 2023 entered between Capital Alliance Investments Limited and Hatton National Bank PLC as the trustee and custodian of the fund (the “Trust Deed”).

January 26, 2024

The Securities and Exchange Commission of Sri Lanka (SEC), in September 2023, released the updated Corporate Governance Regulations for entities listed on the Colombo Stock Exchange (CSE). The revisions come after nearly 15 years and apply to companies listed on the Main Board and Diri Savi Board, with a majority of the rules effective from 1 October 2023.

The updated regulations, in line with international best practices, seek to offer clear directives for implementing effective Board and management practices. High standards of Corporate Governance, together with accountability and transparency, are essential for bolstering investor trust in the capital markets. This framework also provides listed entities the opportunity to enhance investor confidence and attract much-needed investments. Furthermore, it also provides the opportunity for Sri Lankan capital markets to operate in line with other progressive capital markets globally.

Some of the main updates to the regulations include matters relating to criteria for ‘independence’ of directors and changes to the composition of Audit, Remuneration, and Related Party Transaction Committees. In addition, several new regulations were also introduced. Some of the key additions include the establishment of the Nomination and Governance Committee, the minimum number of board members and maximum age of a board director, segregation of the position of Chairman and Chief Executive Officer, the appointment of a Senior Independent Director in specific instances, and ‘Fit and Proper’ Assessment Criteria for directors and CEOs.

Furthermore, the regulations also stipulate that listed entities establish policies related to the internal code of business conduct and ethics for all directors and employees, relations with shareholders and investors, whistleblowing, and anti-bribery and corruption.

In formulating the rules, the SEC and CSE invited public consultations during the period from 2021 to 2023, to receive views from key participants of the capital markets. Post introduction, the regulators also conducted a number of awareness sessions for the listed companies in the banking sector, insurance sector, and several other sectors.

In its capacity as a leading professional body representing investment professionals in Sri Lanka, CFA Society Sri Lanka (CFASSL) has been a powerful voice on local advocacy issues such as the drafting of new regulations, corporate governance and setting standards of best practices.

President of CFASSL Aruna Perera, CFA noted: “The Society commends the SEC and the CSE for making the much-needed updates to the corporate governance regulations for listed entities. Since its inception, CFASSL has worked closely with the regulators, advocating for good governance, and was pleased to be a part of the public consultations providing recommendations on matters related to the independence of directors, maximum age of independent directors, and roles of CEO and Chairperson of the Board.”

Chairperson of the Advocacy Committee, CFASSL, Nadika Ranasinghe, CFA, commenting on the new regulations noted: “We welcome the updated Corporate Governance regulations by the SEC and commend the regulators on the positive direction being taken to position Sri Lankan capital markets in the global space. We look forward to seeing listed entities proactively adopting these regulations in a timely manner and working towards improving investor confidence. The Society will continue to advocate for stronger governance, assisting both the regulators and capital market participants to strive for good standards.”

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. Founded in 2001, CFA Society Sri Lanka is a not-for-profit organisation supporting the professional development and advancement of CFA Charterholders and candidates in Sri Lanka. Its membership of over 275 members consists of CEOs, CFOs, portfolio managers, equity analysts, banking professionals, investment advisors and other senior-ranking financial practitioners, and over 300 candidates, mainly in the financial sector.

December 19, 2023

The Colombo Stock Exchange (CSE), along with the Securities and Exchange Commission of Sri Lanka (SEC), revised the Corporate Governance Rules for the Listed Entities after 16 years. These revised rules are applicable to companies listed on the Main Market Segment, i.e. the Main Board, Diri Savi Board and Catalyst Board, from 1^st October 2023, subject to certain transitional provisions.

Corporate Governance Rules are quite significant for listed companies as they play a crucial role in ensuring transparency and accountability and enhancing trust and credibility of the company. The revised Corporate Governance Rules of the CSE were formulated in line with global best practices and will go a long way in enhancing investor confidence in the capital market. The new rules would attract more investors to the stock market and also create a more welcoming eco system for the companies to list on the stock exchange. These rules are aimed at promoting responsible, ethical, and transparent business practices, which would reduce the cost of capital for listed companies and contribute to their long-term sustainability.

When formulating the revised Rules, the SEC and CSE conducted several public consultations from 2021 to 2023 and considered the views received therefrom in formulating the rules.

Furthermore, CSE, in collaboration with SEC, also conducted a series of awareness sessions on the revised Corporate Governance Rules for the listed companies in the Banking Sector, Insurance Sector (with the Insurance Regulatory Commission of Sri Lanka), and other industry sectors.

SEC Chairman Faizal Salieh delivered the keynote address and Chief Regulatory Officer of CSE Renuke Wijayawardhane made the detailed presentation of the rules of these sessions which also included a ‘Q & A’. Notable speakers during the Question and Answer sessions included the SEC Chairman, Mr Razik Zarook, Chairman, Insurance Regulatory Commission of Sri Lanka (IRCSL), Mrs. Yvette Fernando, Commission Member SEC and IRCSL, Mr. Sujeewa Mudalige, Commission Member SEC, Mr. Manil Jayasinghe, Commission Member SEC, Mr. Sanjaya Bandara, Commission Member SEC, Mr. A.K. Seneviratne, Commission Member, IRCSL, Mr. Ray Abeywardane, Director CSE, Mr. Chinthaka Mendis Director General SEC, Mr. Rajeeva Bandaranaike, Chief Executive Officer, CSE, Mrs. Damayanthi Fernando, Director General IRCSL, Mr. Renuke Wijayawardhane, Chief Regulatory Officer, CSE and Ms. Manuri Weerasinghe, Director Corporate Affairs, SEC who shared their expertise and engaged in a lively exchange of ideas. Senior management and staff from the SEC, CSE and IRCSL were also present at the sessions

Senior officials of the CSE also presented the new Corporate Governance Rules at several seminars/awareness sessions held by other organizations, enabling the listed entities and the relevant stakeholders to gain much-needed knowledge on these Rules.

Some of the key changes introduced via the new Corporate Governance Rules include specifying a minimum number of directors and Independent Directors for listed entities, appointment of a ‘Senior Independent Director’ in certain specific instances, establishment and operationalization of a Nomination and Governance Committee, change in the composition and functions applicable to the Audit, Remuneration and Related Party Transaction Committees, introduction of Fit and Proper criteria for Board members and CEO, changes to determine the criteria for ‘independence’, additional disclosure requirements on governance-related matters etc.

Several listed companies have commenced compliance with the new Corporate Governance Rules, well ahead of the timelines specified in relation to some of the new requirements and have been actively engaged with the CSE and SEC on connected matters.

The revised Corporate Governance Rules are not applicable to the companies listed on the Empower Board.

Visit www.cse.lk to view the FAQs related to the Revised Corporate Governance Rules.

Older Posts

The SEC and CSE organise Island wide teacher training programs for the established 100 Capital Market Clubs.

SEC and CSE successfully conducts an Investor Forum in Dambulla.

SEC and CSE successfully conduct an Investor Forum in Nuwara Eliya, raising awareness on the investment opportunities in the Stock Market.

CSE and USAID’s Issuer Forum to promote Capital-raising for SMEs in Jaffna

SEC and CSE hosts Investor Forum in Vavuniya.

The Colombo Stock Exchange Launches version3 of its Business Intelligence Dashboard – CSE Market IQ (MIQ)

CSE partners with SLIM with the intention to promote capital market education among SLIM students.

CAL Five Year Optimum Fund listed on the CSE.

CFA Society Sri Lanka commends the new Corporate Governance structure for listed entities

Corporate Governance Rules revised to drive Capital Market forward