CSE / CHEC exchange initial spade work

The Colombo Stock Exchange (CSE) is to seek all regulatory approvals from the relevant authorities - the capital market regulator and the Central Bank - to establish a regionally recognised financial exchange within the country’s borders with the CHEC Port City Colombo, senior officials said.

The capital market operator signed a Memorandum of Understanding ( MoU) with CHEC to enhance the capital markets in Sri Lanka by taking advantage of Port City Colombo’s special emphasis of the Colombo International Financial Center last week. “We are currently doing all the spadework to set up the exchange. We will be seeking approval from the Securities and Exchange Commission (SEC) in due course,” Rajeeva Bandaranaike, CEO CSE told the Business Times on Friday.

The CSE has also made an application to the SEC for a dual currency exchange where companies can raise debt/go public only in foreign currency. Once this is approved, it will be much easier to get the approval for the recently proposed exchange with the CHEC as it will be another extension of the same, SEC officials said welcoming the move to start different exchanges.

The MoU is to work on a collective mission to establish an International Multi-Currency Exchange within Port City Colombo that will serve as a gateway for both regional and global investors, whilst also providing an ideal platform for Sri Lankan and overseas corporates to issue foreign currency bonds and equities as well as develop other financing and risk management instruments across asset classes.

The CSE has also made an application to the SEC for a dual currency exchange where companies can raise debt/go public only in foreign currency.