Local firms facilitated to sell dollar shares on stock exchange

• Move is part of new strategic plan CSE launched in 2020
• Has been effective since 14th February 2022
• CSE Chairman says local firms aspiring to grow internationally can now make use of this move to meet their foreign currency requirements

The Colombo Stock Exchange (CSE) has enabled local entities incorporated or established in Sri Lanka to issue and list foreign currency denominated shares in the main market segment (Diri Savi and Main Boards) of the bourse. 

This new financing option for local companies is a result of the new strategic plan which CSE launched in 2020. 
Having obtained necessary clearances from the Securities & Exchange Commission of Sri Lanka, the Listing Rules and the Trading Rules of the CSE and the CDS Rules of the Central Depository Systems (Pvt.) Ltd. have been suitably amended to facilitate the listing, trading and clearing & settlement of foreign currency denominated shares to be issued by local entities. 

The aforementioned regulatory framework has been effective since 14th February 2022. 
CSE Chairman Dumith Fernando welcoming the move stated, “The enabling of the raising of foreign capital would fulfill a gap for capital raising in the Sri Lankan capital market. This was formulated taking into consideration the interests expressed by several local entities in raising foreign currency denominated capital via the CSE. 

We hope that Sri Lankan companies aspiring to grow internationally can now make use of this unique opportunity via the CSE to meet their foreign currency growth and capital needs”.

Speaking on the development, CSE Chief Regulatory Officer Renuke Wijayawardhane commented, “The CSE submitted a comprehensive business proposal, including the proposed regulatory policy framework governing the listing and trading of foreign currency denominated shares issued by local entities on the CSE, to Central Bank of Sri Lanka (CBSL) and the Finance Ministry via the Securities and Exchange Commission (SEC), and the CSE continuously engaged with the Department of Foreign Exchange of CBSL in formulating the regulatory framework for this mechanism, resulting in a comprehensive set of  regulations and directions being issued by the Finance Ministry, which facilitate and enable the listing and trading of foreign currency denominated shares and debt securities on the CSE by local entities. With this initiative, we also hope to create a new stream of foreign currency-based revenue for the market participants.” 

An updated regulatory framework can be accessed through the CSE website (www.cse.lk) for reference. 
Local entities interested in raising funds through this mechanism should contact Purasisi Jinadasa, Senior Vice President–Origination and Issuer Relations, at [email protected] or 0112356402 if further information or clarifications are required.