CSE and USAID’s Issuer Forum promotes capital raising for Jaffna SMEs

Panel Discussion

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 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 programme, 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, Niroshan Wijesundere, Senior Vice President – Marketing for CSEbegan 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.”
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 thatlisted 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’, Vasantha Kumar, Assistant Vice President, Acuity Stockbrokers (Pvt) Limited, stated, “SMEs in Sri Lanka usually maintain an annual turnover not exceeding 
Rs. 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 Jude Fernando, Inclusive Finance Director, PSD; Vasantha Kumar, Assistant Vice President, Acuity Stockbrokers (Pvt) Limited; Rohan Senewiratne, Managing Director, Atarah Capital;  Nadarajah Gunabalan, Consultant - V-Share Ventures (Pvt) Ltd; Punyamali Saparamadu, SVP - Commercial, CSE, with  Shanmukananthan Sabananthan, Branch Manager - Jaffna, CSE, serving as the moderator.