Listing of foreign corporates in the TSE as JDRs is customary since the foreign corporates are already listed in their home countries. According to Ambassador Karannagoda, this is an opportune point of time to have Sri Lankan listed corporates be listed in the global TSE market since the TSE is in the process of merging with the Osaka Stock Exchange (OSE). This mega integration of these two mega markets i.e. the TSE and the OSE, would reinvigorate the Japanese equity market, thus benefitting the corporates and the investors, alike.
Senior officials of the TSE have conducted discussions with the relevant officials of the Embassy of Sri Lanka in Tokyo, in this context. For all record purposes, the listing of Sri Lankan corporates in the TSE would enable the Sri Lankan corporates to tap and to raise funds from external (international) sources, money center banks and markets.
Ambassador Admiral Karannagoda added that once a Sri Lankan corporate is listed in a major global exchange such as the TSE, it would obviously raise her profile and her stature not only on regional basis but on a global basis.
Further, listing Sri Lankan corporates in other major markets/exchanges such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE) or the NASDAQ of the US is a long and arduous process, let alone the cost of listing. Accordingly, the listing in the TSE is less difficult, less costly and the process is less arduous.
The Colombo Stock Exchange (CSE) was among the best performing three markets in the world from 2009 to 2011. Further, the CSE is fuelled, mostly, not only by the domestic investors but by the foreign investors.
The TSE has noted that the fundamentals and the technical factors of the listed companies of the CSE are, generally, more stable than that of many other markets in both developed and developing nations. The price earnings ratio (P/E) of the CSE is an impressive number of around 13. It is surprising that despite a number of large blue-chip corporates which are listed in the CSE, but not a single company is listed in any major global exchange.
According to Ambassador Admiral Karannagoda, listing of Sri Lankan corporates in the TSE would make them more globalized and more connected, thus been able to compete and vie with other similar corporates in the region as well as in the world.
For all record purposes, the keen interest expressed by the TSE on corporates of the CSE augurs well on the performance of the CSE as well as of the economy of the country.
