SEC, CSE, and CFA Society to further strengthen ESG focus in capital market

SEC, CSE and CFASSL officials at the MoU signing

The Securities and Exchange Commission of Sri Lanka (SEC), the Colombo Stock Exchange (CSE) and the CFA Society Sri Lanka (CFASSL) have entered into a Memorandum of Understanding (MoU) to further strengthen Environmental, Social, and Governance (ESG) focus in the Sri Lankan capital market. 

The MoU will enable the institutions to jointly deliver initiatives focused on educating local investors on ESG andfostering effective ESG practices and communication by Listed Companies. 

Furthermore, the MoU will also pave the way for cooperation in improving ESG-related know-how of local market practitioners, encouraging the adoption of the CFA Institute’s Global ESG Disclosure Standards for Investment Products and the introduction of ESG-related new products, standards and regulations. 

Commenting on the development, SEC Chairman Viraj Dayaratne said, “Strengthening ESG focus in regulation, policy-making and in our advocacy efforts among investors, issuers and other market stakeholders is vital in ensuring that the Sri Lankan capital market benefits from the considerable interest in ESG investing observed globally”.

CSE Chairman Dilshan Wirasekara commenting on the MoU said, “CSE has over the years maintained a strong commitment to creating ESG related awareness and to encourage the greater adoption of ESG practices and communication by listed companies as it not only creates opportunities for the market, but also creates a positive impact to the environment and society at-large.” Dinesh Warusavitharana, the President of CFASSL said, “The local member society of CFA Institute, which is a global organization that provides education for investment professionals are pleased to collaborate with the SEC and CSE to educate capital market participants on ESG”.