Business

EU asks Sri Lanka not to be ‘WTO incompatible’

Published

5 years ago

2021/03/4

by Sanath Nanayakkare

Sri Lanka should avoid any unnecessary damage to the commercial and economic interests of any other WTO party including the EU, Frank Hess, Head of Cooperation Section at EU Delegation to Sri Lanka and the Maldives said.

He said so while addressing a media briefing online, following the final project steering committee meeting of the EU – Sri Lanka Trade Assistance Project at Taj Samudra Colombo recently.

“Some policy makers openly talk about protectionist aims. I ask: Is this what the country needs for economic growth? Is this what is fair to the EU? Sri Lanka enjoys a positive trade balance with the EU, and I would like to underline that no modern economy can operate in isolation.

“We raised this issue at the WTO meetings end of last year and the WTO Market Access Committee in January. We remain concerned by measures some of which have been implemented in a WTO incompatible manner”, he said.

Elaborating on his views he said:

“The European Union believes that global problems such as the pandemic and the ensuing economic crisis, can only be solved through global cooperation. We can help ourselves only by working together.

“Sri Lanka should pay due regard, in carrying out its domestic policies, to the need for maintaining or restoring equilibrium in its Balance of Payment on a sound and lasting basis, by adopting measures which increase instead of decreasing international trade.

“Recently the European Commission set out its trade strategy for the coming years. Reflecting the concept of open strategic autonomy, the strategy builds on the openness to contribute to the economic recovery through support for the green and digital transformations, as well as a renewed focus on strengthening multilateralism and reforming global trade rules to ensure that they are fair and sustainable.

“For the recovery of the Sri Lankan and global economy, open and rules-based trade is essential as it gives confidence to businesses to invest, and re-start exchanges that bring in employment and revenues.

“We understand the government is keen to pursue a trade model aiming at export growth and FDI growth, attracting foreign investment also from the EU. But which investor will come here if he or she is forbidden or face obstacles when importing from other countries? To increase GSP+ utilization, you will need to have a balanced approach and not close doors. Trade is about mutual benefits. I fully expect that doing business with Sri Lankan enterprises will not only open new markets in the EU and regionally to you, but will enable EU SMEs to link with local businesses and grow together as well.

“If companies and the Government want to increase the competitiveness of Sri Lanka, the best way is to open up the economy, invest in research and development, provide skills to workers, nurture entrepreneurs, provide decent jobs and most importantly create a business conducive environment which supports both exporters and importers.”

“The EU has also helped SrI Lanka through giving it GSP+ status. With GSP+, the EU has unilaterally opened its market and granted duty free access on 66% of the EU tariff lines representing about 6000 products.

“About €3 billion worth of goods were exported to the EU from Sri Lanka in 2019 using the GSP+ preferences. This resulted in a positive trade balance for Sri Lanka of 1.5 billion euro in

2019 alone. Even without the UK, this balance is still 1 billion euro in the favor of Sri Lanka.”

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Business

SEC Sri Lanka eases Minimum Public Holding Rules for listings via introductions to boost market flexibility

Published

8 hours ago

2026/01/1

Thilina Walpola

The Securities and Exchange Commission of Sri Lanka (SEC) has approved amendments to the Colombo Stock Exchange (CSE) Listing Rules to provide greater flexibility regarding the Minimum Public Holding (MPH) requirement for companies listing through the Introduction method.

These revisions were proposed and deliberated under Project 6 – New Listings (Public and Private), one of 12 key strategic initiatives launched by the SEC to strengthen Sri Lanka’s capital market framework. Project 6 aims to drive national capital formation, promote listings by highlighting benefits and opportunities for listed entities, and attract large-scale corporates to enhance market depth, liquidity, and investor confidence.

The amendments reflect a joint effort by the SEC and CSE, underscoring strong collaboration between the regulator and the Exchange to address evolving market needs while maintaining market integrity, transparency, and investor protection.

The salient features of the amendments to the CSE listing Rules are as follows;

Entities seeking listing by way of an Introduction on the Main Board or Diri Savi Board that are unable to meet the MPH requirement at the time of submitting the initial listing application, may now be granted a listing, subject to certain conditions on compliance.

Non-public shareholders who have held their shares for a minimum period of eighteen months prior to the date of the initial listing application may divest up to a maximum 2% of their shares each month during the six months commencing from the date of listing, and simultaneously, be subject to a lock-in requirement of 30% of their respective shareholdings as at the date of listing, until MPH compliance or 18 months from the date of listing, whichever occurs first.

A phased MPH compliance framework has been introduced requiring a minimum 50% compliance with MPH requirement within 12 months and full compliance within 18 months from the date of listing.

Entities should include clear disclosures in the Introductory Document confirming their obligation to meet MPH requirements within the prescribed timelines.

In the event of non-compliance with the MPH requirement, certain enforcement actions have also been introduced.

The revised framework is expected to encourage more companies to consider listing via Introduction, thereby broadening market participation, improving liquidity, and contributing to the overall development of Sri Lanka’s capital market. Issuers, investors, and market intermediaries will benefit from a more enabling yet well-regulated listing environment.

Business

Manufacturing counters propel share market to positive territory

Published

8 hours ago

2026/01/1

Thilina Walpola

Stock market activities were positive yesterday, mainly driven by manufacturing sector counters, especially Sierra Cables, Royal Ceramics and ACL Cables. Further, there was some investor confidence in construction sector counters as well.

Amid those developments both indices moved upwards. The All Share Price Index went up by 150.54 points, while the S and P SL20 rose by 41.5 points. Turnover stood at Rs 4.65 billion with six crossings.

Those crossings were reported in Royal Ceramics which crossed 3.8 million shares to the tune of Rs 174.3 million; its share s traded at Rs 45.20, VallibelOne 1.4 million shares crossed to the tune of Rs 138.6 million; its shares traded at Rs 99, Melstacorp 500,000 shares crossed for Rs 87.24 million; its shares traded at Rs 174.50, Sierra Cables two million shares crossed for Rs 68.2 million, its shares sold at Rs 34.30, Kingsbury 1.5 million shares crossed for Rs 31.8 million; its shares traded at Rs 21.20.

In the retail market companies that mainly contributed to the turnover were; Sierra Cables Rs 418 million (20 million shares traded), Royal Ceramics Rs 363 million (eight million shares traded), Colombo Dockyards Rs 323 million (1.7 million shares traded), ACL Rs 311 million (3.5 million shares traded), Renuka Agri Rs 149 million (12.3 million shares traded), Sampath Bank Rs 94.7 million (648,000 shares traded) and Bogala Graphite Rs 86.4 million (529,000 shares traded). During the day 122.8 million shares volumes changed hands in 34453 transactions.

Yesterday the rupee opened at Rs 310.00/25 to the US dollar in the spot market, weaker from Rs 310.00/310.20 the previous day, dealers said, while bond yields were broadly steady.

By Hiran H Senewiratne

Business

Atlas ‘Paata Lowak Dinana Hetak’ celebrates emerging artists nationwide

Published

8 hours ago

2026/01/1

Thilina Walpola

Atlas, Sri Lanka’s leading learning brand, reaffirmed its purpose of making learning fun and enjoyable through the Atlas All-Island Art Competition 2025, which concluded with a gifting ceremony held recently at Arcade Independence Square under the theme ‘Atlas paata lowak dinana hetak’. Students from Preschool to Grade 11 showcased their talents across five categories, with all island winners receiving cash prizes, certificates, and gift packs. Additionally, merit winners in each category were also recognized. The event brought together students, parents, and educators, highlighting Sri Lanka’s cultural diversity, nurturing young talent, and reinforcing Atlas’s long-standing commitment to education, creativity, and building confidence among schoolchildren. The event concluded with the ‘Atlas Art Carnival’, which brought children and parents together through games and creative art activities in a fun and lively atmosphere.