Kurunegala SMEs explore capital raising opportunities through stock market

From left: J.F. Fernandopulle, Dishan Vitharanage, Punyamali Saparamadu and  Rajeeva Bandaranaike.

The Colombo Stock Exchange (CSE) hosted an issuer forum recently at ‘The Epitome’, Kurunegala for business owners in the Wayamba province. 

The forum provided guidance on exploring effective capital-raising avenues, specifically through listing on the Empower and Diri Savi Boards. These boards cater to SMEs across a wide range of sectors, including agribusinesses, livestock, energy generation, ICT, and tourism-related ventures. Industry experts including CSE representatives led panel discussions and interactive sessions.

Addressing the gathering, Rajeeva Bandaranaike, CEO of CSE said, “A listing offers substantial benefits to a company, from raising much needed capital to enhancing its business stature, fostering sound governance, sustainable practices, and enabling wealth creation for shareholders through an IPO or an introduction.”

“A listing on the CSE involves a mindset shift that leverages these advantages while maintaining control of your company and optimizing the debt-to-equity mix. SMEs now have the opportunity for market-based fund raising especially since the CSE has broadened its listing criteria through the Empower Board, making capital more accessible.” 

Conducting a session on “Capital Mobilization through the CSE”, Dishan Vitharanage, Manager of Corporate Advisory & Capital Markets at the Merchant Bank of Sri Lanka & Finance PLC said, “When a business seeks to expand, the conventional route to secure funds typically involves acquiring loans. However, an alternative and advantageous method is to list the company on a stock exchange, such as the CSE, and raise capital by issuing shares to the public.” 

He went on to say, “This approach offers numerous benefits: it provides access to cost-effective funding, boosts the company’s corporate profile and public visibility, and fosters good governance practices and operational efficiency.”

The Executive Director/CEO of the ISB, Neelakanth Wanninayake said, “Stakeholder consultations for the Industry Policy highlighted that SMEs face significant challenges accessing diverse financial instruments. To address this, ISB advocates for policy measures to introduce varied financial options for business expansion. In collaboration with the CSE, ISB is supporting Kurunegala SMEs in becoming listed companies. This initiative aims to foster a corporate culture, enhance company profiles, and streamline management, positioning Kurunegala’s dynamic economy to produce globally competitive firms.”

The forum also featured a panel discussion titled “Journey Towards Listing & Life after Listing” including Dishan Vitharanage; Rajeeva Bandaranaike;  J.F. Fernandopulle, Managing Director, Executive Non-Independent Director of Mahaweli Coconut Plantations PLC and with Punyamali Saparamadu, Senior Vice President, Commercial, CSE, serving as the moderator. The discussion proved to be an interactive with many participant questions and clarifications.

Following the panel discussion and a Q&A session, attendees reported finding the event valuable for its insightful perspectives.