SEC to push PPPs listings

Generally, the PPPs that Sri Lanka is familiar with are where a private entity brings the money and the know-how whilst the government institution comes up with the project. “This is a procurement method. In what we propose, the private entity comes in with the cash and ties up with the government which will provide land/infrastructure to form a Special Purpose Vehicle. Earlier too a special purpose vehicle can be formed but it didn’t have a legal standing of its own. What we propose is that this vehicle can be listed on the stock market to raise more capital,” Mr. Dayaratne explained. The SEC is looking at projects such as energy and power which yields a return on investment faster than infrastructure projects such as roads etc for PPPs.

Mr. Dayaratna said this move will need separate public listing requirements. “It is imperative for the SEC to recalibrate its role with a view to provide impetus to capital formation while striking the right balance between market regulation and market development. The CSE has the market infrastructure to support the fund raising requirements of the government as well, especially in terms of tapping public markets for funding development projects and the private participation in initiatives of national significance. Very much like private entities, we expect that the government will also look at versatile and alternative sources of funding in marching forward,” Mr. Mendis has said.

Mr. Dayaratne also said the ' All Or Nothing Board', a mechanism that is used on a buy or sell a (large) parcel in its entirety at an open auction, is also set to power PPPs’ listing. This board instructs a broker to execute the order or sell/buy the parcel only in full.