CSE, Port City Colombo pact to set up multicurrency stock exchange

The Colombo Stock Exchange (CSE) and CHEC Port City Colombo has signed a Memorandum of Understanding (MoU) to enhance the capital markets in Sri Lanka by taking advantage of the Port City Colombo’s special emphasis of the Colombo International Financial Centre, in order to establish a regionally recognised financial exchange within the country’s borders.

The MoU was signed with the objective of working on a collective mission to establish an International Multi-Currency Exchange within the Port City Colombo. The exchange 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 said in a media release.

CHEC Port City and the CSE will actively collaborate to identify and attract a global stock exchange to partner the Colombo Stock Exchange in establishing a modern world-class trading exchange, which will position Sri Lanka as a hub for capital raising in the South Asian and the ASEAN region. The CSE will also work with the regulators in providing a conducive environment for a well-functioning market while introducing state-of-the-art modern technology, which will drive liquidity and seamlessly introduce new products and services at the exchange.

Dumith Fernando, CSE Chairman, said: “Through this initiative we are planning to partner an International Stock Exchange that will bring a new dimension to the capital market and cater to the requirements of the Port City as well as issuers and investors regionally.”

Jiang Houliang, Managing Director of CHEC Port City Colombo, said: “We are excited to work with the CSE in establishing an International Stock Exchange in Port City. We strongly believe that with the right infrastructure and business friendly policies, we would succeed in positioning Port City Colombo as an attractive location for regional listings, which would be a gateway for companies around the world to access new investment opportunities.”