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Driving growth through listings and diversifying revenue streams at the Colombo Stock Exchange

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Punyamali Saparamadu, Senior Vice President of the CSE Commercial Division, providing a detailed overview on the strategies adopted by CSE to stimulate growth and broaden its revenue sources. Her insights also highlight the new product portfolio as well as issuer relations initiatives of the Colombo Stock Exchange.

Can you talk about the role your division plays in the Colombo Stock

Exchange (CSE)?

The establishment of a dedicated Commercial Division within the CSE underscores the organization’s commitment to enhancing issuer relations, marketing new products, and diversifying revenue streams while leveraging on its advocacy efforts. These key functions are aimed at strengthening the CSE’s market position among potential issuers across its product suite and fostering growth opportunities.

The Issuer Relations function is pivotal in engaging with unlisted companies, promoting the benefits of listing with potential issuers, dispelling misconceptions, nurturing relationships with unlisted as well as listed entities and positioning the CSE as a preferred solution for capital mobilization.

New product commercialization focuses on promoting new capital market products, by designing appropriate products, assessing market feasibility, creating an enabling environment for such potential products as well as marketing and promoting new products to issuers investors and other users.

Advocacy serves as a crucial link between the CSE and various stakeholders, including regulators, government agencies, and financial institutions, partners/agencies such as USAID, IFC, ADB, UNDP, EU Green Recovery Facility, as well as the Colombo and regional business councils, in securing support for product commercialization initiatives, fostering collaboration and resource mobilization.

Moreover, the Commercial Division prioritizes diversifying revenue streams beyond trading income, enhancing the CSE’s financial resilience and mitigating market volatility risks.

With interest rates decreasing, would you say there is a demand for capital raising through the market? Do you think raising equity through market is beneficial when compared with raising private equity?

A public listing offers companies a unique opportunity to unlock the value of their companies and create wealth for their shareholders which cannot be achieved through private equity. We believe that there will be strong appetite among issuers and investors for capital raising through the stock market for both debt and equity capital.

Let’s consider the factors that weigh upon a listing. When considering whether to raise capital through debt or equity, companies weigh several factors, including funding requirements, cost, speed of raising funds, risk tolerance, and funding duration.

In environments where interest rates are declining, companies often find bank or corporate debt appealing to meet funding needs. Listed corporate debt, particularly for companies with an investment-grade rating, offers access to public funding pools without the need for collateral. Strong investor interest was drawn for corporate debt initial public offerings (IPOs) on the Colombo Stock Exchange (CSE).

Considering the COVID-19 pandemic and the economic crisis that followed in Sri Lanka in 2022, market interest rates can undergo significant fluctuations, imposing liquidity constraints and hurdles for businesses, particularly SMEs and those heavily reliant on debt, notably in sectors like tourism. Even with moratorium facilities in place, excessive debt can endanger collateral ownership, worsening financial pressures. Under such conditions, equity financing presents an attractive alternative.

Unlike debt financing, equity does not entail mandatory dividend payments, thereby offering greater flexibility for companies in cash flow management, particularly during uncertain or volatile earnings periods.

An equity infusion can bolster a company’s financial standing by reducing reliance on debt while achieving an optimal debt-to-equity ratio.

Going public offers companies the opportunity to be seen in an entirely new perspective with enhanced brand recognition, access to a broad pool of local and international investors who could offer strategic partnerships and value addition, increased business value, and improved talent retention and attraction while uplifting the overall company stature being part of the listed entity fraternity.

Another key aspect that companies would consider is that a listing would enable them to be categorized as a better governed company under the corporate governance rules of the CSE which make them more transparent and accountable entities.

Given the above, the CSE’s value proposition for prospective issuers seeking equity listings revolves around unlocking the value of their companies and fostering wealth generation for their shareholders.



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Advocata Institute highlights regulatory barrier limiting women’s overtime earnings

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Advocata Institute says that, a regulatory barrier prevents Sri Lankan women achieving pay parity with their male counterparts despite recent legislative amendments that have opened doors for women to work night shifts.

Despite the 2024 and 2026 liberalizations of the Shop and Office Employees Act (SOEA), which allowed women over 18 to work night shifts in IT, BPO, and hospitality sectors, women remain legally barred from maximizing their income due to rigid overtime restrictions.

Under current regulations, women cannot be employed under the Shop and Office Act for more than nine hours per day, a limit that strictly includes overtime. While Regulation 6 of the Act permits up to twelve hours of overtime per week, this daily “hard cap” creates a practical barrier that prevents women from accessing the full overtime entitlement available to male workers. This creates a regulatory paradox: while the law now permits women to work at night, it simultaneously restricts them from working the hours necessary to take home the same pay as a man performing the same role.

The urgency for reform is underscored by the Sri Lanka Labour Force Survey for the third quarter of 2025, which reveals a significant participation gap. Female labour force participation stands at 33.9 percent, compared to 68.6 percent for men. Closing this gap is a key structural reform priority under Sri Lanka’s International Monetary Fund Extended Fund Facility (EFF) programme, which highlights the importance of modernizing labour laws to expand labour supply and support long-term economic growth.

Debates on reforming these restrictions are often framed around the concern that removing gender-specific protections could expose women to exploitation. However, a woman’s vulnerability in the labour market is shaped less by the absence of gender-specific laws and more by structural challenges such as inadequate public transport, poor workplace infrastructure, weak enforcement of law and order, and limited access to childcare.

Addressing these underlying barriers is critical to ensuring both protection and opportunity. True empowerment requires shifting the focus from paternalistic hour-caps to creating a safe, gender-neutral environment that allows women the agency to maximize their earnings and contribute fully to the national economy.

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Drifting lubricant barrels trigger oil spill on southern coast; 99% of clean-up completed

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Samantha Gunasekara

Authorities have traced the oil contamination reported along sections of the Hikkaduwa and Peraliya coastlines in the Galle District to drifting barrels of industrial lubricant, while rapid response teams have already removed almost all visible oil deposits from the affected beaches.

The Marine Environment Protection Authority (MEPA), together with the Sri Lanka Coast Guard, launched an immediate response after oil patches were detected along about a 20-metre stretch of coastline in the Hikkaduwa and Peraliya areas.

Addressing a media briefing at the Ministry of Environment, MEPA Chairman Samantha Gunasekara said emergency shoreline clean-up operations began on March 7 under the instructions of Environment Minister Dammika Patabendi.

“Nearly 99 percent of the oil patches have already been cleared from the affected coastal stretch,” Gunasekara said, adding that the swift intervention by authorities had prevented the incident from escalating into a wider marine pollution crisis.

Investigations carried out by MEPA have confirmed that the contamination originated from barrels containing Shell Corena S2 P 100 lubricant oil that had apparently been lost at sea and later drifted ashore.

The lubricant manufactured by Shell plc is commonly used to lubricate the internal components of reciprocating piston air compressors. Officials said the substance is not classified as a hazardous or toxic oil, easing initial fears of severe environmental damage.

MEPA General Manager Jagath Gunasekara said monitoring of the coastline was continuing to ensure that no additional oil patches washed ashore.

Meanwhile, the Department of Wildlife Conservation said there had been no confirmed reports of harm to marine animals, including sea turtles and coastal wildlife, following inspections in the affected areas.

Wildlife officials said they were continuing to keep the situation under close observation to ensure that marine fauna along the southern coast remained safe.

Authorities stressed that protecting the ecological integrity of the southern coastal belt—particularly around the Hikkaduwa marine area—remains a priority, while further investigations are under way to determine how the lubricant barrels ended up drifting in Sri Lankan waters.

By Ifham Nizam

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Support for psychological well-being: Launch of telemedicine psychology program in response to Ditwa Cyclone

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The Sri Lanka College of Psychiatrists has launched an innovative telemedicine psychology program designed to provide essential support and mental health care to individuals adversely affected by the Ditwa Cyclone. This initiative is a vital response to the psychological challenges faced by the community in the aftermath of the disaster.

However, the implementation of this program has faced significant obstacles, primarily due to a considerable lack of access to smart devices among the target beneficiaries. Recognizing the urgency of this situation, S-lon Lanka (Pvt) Ltd has made a commendable contribution by donating tablet devices through its corporate social responsibility initiative, the “Suwasahana Charika” Program. This generous donation aims to bridge the technological gap, ensuring that individuals in need can access the psychological services offered by the telemedicine program.

The collaborative efforts were strengthened during a recent event that was attended by key figures, including Mr. S.C. Weerasekara, the Group Director / Chief Operating Officer of The Capital Maharaja Group, and Dr. Dashanthi Akmemana, the Chairman of the Sri Lanka College of Psychiatrists.

The Sri Lanka College of Psychiatrists expressed its gratitude to S-lon Lanka for its support and is committed to addressing the community’s mental health needs during this challenging time.

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