Capital market reaches third phase of digitalisation

SEC and CSE officials at special bell ringing ceremony held yesterday (from left) CSE CEO Rajeeva Bandaranaike, CSE Director Jayantha Fernando, CSE Director Dimuthu Abeywardena, CSE Director Ray Abeywardena, CSE Chairman Dilshan Wirasekara, SEC Chairman Viraj Dayaratne PC, SEC/CSE Joint Committee Chairman for Digitalisation Naresh Abeyesekara, SEC DG Chinthaka Mendis, SEC Commission Member Sanjaya Bandara, SEC Commission Member Manil Jayesinghe, CSE Director Arjuna Herath and SEC Commission Member Sanjeewa Dissanayake   

• A total of 14 new features were introduced as part of third phase of digitalisation
• User base of CSE mobile app has grown to over 220,000
• New user segments: 18-40 years old were created, making up 92% of new base

The Colombo bourse yesterday reached a key milestone, the completion of the third phase of digitalisation, an effort that has allowed a wider audience to take part in the activities of the capital market.

The key achievement was celebrated at a special market opening ceremony held under the theme ‘Sri Lankan Capital Market – The Odyssey’. 

The event also marked the 35th anniversary of the Securities and Exchange Commission (SEC).
Ceremonially opening the market for trading was SEC Chairman and President’s Counsel Viraj Dayaratne. 
The capital market regulator and operator stepped up efforts in converting the paper-based statements of the Colombo bourse to electronic forms, for which a transformative digital offering was launched through the CSE mobile app, enabling an end-to-end digital on boarding and online account opening feature. 

In the third phase, the CSE and SEC explored avenues to bring in investments from retail investors living outside of Sri Lanka. The committee established to steer the initiative forward developed the necessary infrastructure to offer convenient registration and investment opportunities to foreign investors. 

A total of 14 new features were also introduced as part of the third phase of digitalisation. 
Dayaratne highlighted it was challenging to open the capital market, due to the COVID-19 pandemic, as not all functions of the market could be carried virtually and the need to digitalise end-to-end operations of the market was badly felt. The gap led to the rolling out of the digitalisation initiative. “It was important for the SEC to support the CSE in this exercise since the SEC also had a duty towards the development of the market and that with the ultimate achievement it proved that difficult and complex tasks could be achieved if parties worked collectively,” he said.

Commenting on the way forward, CSE Chairman Dilshan Wirasekara said the market operator would not just develop the bourse but also work as a partner to develop the country in the face of the existing economic crisis.
Since the launch of the app to date, over 220,000 users have downloaded the CSE mobile app. 

Making available an app for the CSE has allowed a larger segment of users to engage with the capital market. New potential age groups: 18-40 years old were created, making up 92 percent of the new base.

“Previously, it was more towards 50 plus. Thus, with regard to market sustenance, asset sustenance and market growth, it’s a new base and a note on more investors coming into the market,” shared SEC/CSE Joint Committee for Digitalisation Chairman Naresh Abeysekera at the event.

He shared that with regard to the testament of the platform, having zero complaints up to now is a great achievement.