Colombo bourse on a firmer wicket
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Export Development Board and ICTA (state IT agency) to identify why companies under their remit are not listing and then jointly give incentives to them to do so," Mr. Fernando said.
He added that a continuous discussion on listing state-owned enterprises and looking at public private partnerships will be carried out. The CSE also aims to promote listing more debt. "This is a really good time to look at better rates through debentures which corporates can benefit from," Mr. Fernando pointed out.
Thirdly the CSE plans to level up the unit trust and insurance industries where more equity-based products can be sold.
The CSE’s fourth initiative is to give a big push on financial literacy, Mr. Fernando said. “We see many people not being aware and not knowing how to access the market, all the while seeing it as too risky. We want to promote more financial literacy so that more retailers can actively participate in the market." He added CSE’s digitisation will be a big game changer in this regard. The CSE also has plans to open new branches in the suburbs. Mr. Fernando added that digitising will be a big game changer in this regard.
The final key push area will be to develop trust with the main stakeholders – insurers, investors and the public. "We are trying to find ways to resolve client disputes quicker," Mr. Fernando added noting that the impending delivery versus payment (DVP) system is a big part of building trust with foreign clients as well.
He has plans to get the CSE into an operating profitability within three years.
Mr. Fernando added that the exchange is looking at new products. "We are looking at gold-based products." He also mentioned that CDS is a great product that the exchange has, which has a centralised structure. "We are working with state agencies to include this in their roadmap and to implement centralised registries."
In terms of products, the CSE is also looking at over-the-counter debentures including the debenture repos.
Mr. Fernando highlighted that in his tenure, he wants to focus on the role the CSE ‘can’ play. “We are ready to make a very honest effort to collaborate with the regulatory and policymakers to see what CSE can be and not what it was or has been. We are a facilitator and we have a trusted depository which we can utilise to generate more wealth."