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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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Cabinet approves CECB as consultant for renovation of the Karainagar boat yard project

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The Cabinet of Ministers has approved the proposal presented by the Minister of Fisheries, Aquatic and Marine Resources to seek the services of the Central Engineering Consultancy Bureau as a consultant for the renovation of the Karainagar boat yard  project and allocate 40 million rupees from the Treasury for the expenditure to be borne by the Government of Sri Lanka.

[A memorandum of understanding was signed by the President during his official visit to India in December 2024. , to obtain a grant from the Government of India for the renovation of the Karainagar Boat Yard

According to the MOU, the responsibility of providing the technical consultancy service for the project and exempting the goods and equipment related to the grant from taxes has been assigned to the government of Sri Lanka.]

 

 

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‘Transformative infrastructure’ installed at Colombo West International Terminal

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Making history: The Colombo West International Terminal

In a landmark move for Sri Lanka’s logistics landscape, EFL Project Logistics has completed a critical phase of deliveries for the Colombo West International Terminal (CWIT), a transformative infrastructure project poised to reshape the country’s role in global maritime trade.

CWIT—a collaboration between Adani Ports and SEZ Ltd (51%), John Keells Holdings and the Sri Lanka Ports Authority—is set to be the island’s first fully automated deep-water terminal. As it gears up for full commercial operations in 2025, the recent arrival of high-tech port handling equipment marks a key economic inflection point for Sri Lanka.

Speaking exclusively to The Island Financial Review on the impact, Mohamed Niyas, General Manager – Project Logistics at EFL, said, “The logistics we executed for CWIT are more than just cargo movements; they are catalysts for economic transformation. These deliveries—ranging from electric inter-terminal trucks to automated gantry cranes—are essential to positioning Sri Lanka as a sustainable, high-capacity transshipment hub.”

Among the highlights of the operation were 62 state-of-the-art Sany electric trucks and massive quay and gantry cranes, representing not only a technical leap but also a green one. These advancements contribute to CWIT’s eco-efficient design and bolster Colombo’s capacity to handle up to 15 million TEUs by 2026.

Economically, the development of CWIT—and EFL’s role in its expedited setup—signals a push for increased foreign direct investment, enhanced export competitiveness and job creation across the logistics and engineering sectors. As Niyas emphasized, “We are not just helping move cargo; we are enabling national economic value. Every successful delivery brings us closer to a future where Sri Lanka is a leading player in the South Asian maritime corridor.”

With global shipping routes evolving and automation driving next-gen port operations, CWIT is seen as a strategic asset for long-term growth. EFL’s role in the project showcases the kind of logistics innovation necessary to support this ambition—efficient, sustainable and globally competitive.

By Ifham Nizam

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Marine Tourism Roadmap for Sri Lanka launched by SLTDA

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Dignitaries at the Roadmap launch.

Sri Lanka marked a major milestone in its tourism development efforts with the official launch of the Marine Tourism Roadmap on April 10 in Colombo. This initiative, led by the Sri Lanka Tourism Development Authority (SLTDA) with support from the Asian Development Bank (ADB) under its technical assistance program TA9881 SRI: Supporting Tourism Resilience, lays the groundwork for a new chapter in tourism and the nation’s blue economy.

The Marine Tourism Roadmap was developed through an extensive process of data collection, stakeholder consultations and site visits conducted by the ADB appointed international consultant together with officials of the SLTDA. The final validation of the Roadmap was done by the Marine Tourism Steering Committee, which included representatives from key marine related public and private sector institutions. International expertise was provided by Ms. Aleksandra Dragozet (CEO & Founder – Sea Going Green), ADB’s appointed marine tourism consultant, whose guidance ensured the strategy aligned with global best practices for sustainable tourism. The SLTDA officials, Dr. Prasad Jayasuriya, Director-Tourism Planning, Development & Investments and S Dadeepan, Assistant Director-Tourism Planning & Development coordinated all meetings, site visits and activities with relevant stakeholders and the Steering Committee.

The Marine Tourism Roadmap emphasizes a balanced approach between conservation and economic development, promoting eco-friendly activities such as diving, snorkeling, ship wreck diving and marine wildlife watching. These activities are designed to support local livelihoods while safeguarding Sri Lanka’s rich marine biodiversity, particularly coral reefs, marine mammals, and fragile coastal habitats that face increasing environmental pressure. The strategy outlines two categories of coastal destinations: areas covering Kalpitiya through Galle to Trincomalee, which possess established marine tourism industries; and areas covering Mannar, Jaffna and the North-Eastern coastal belt, which are recognized for their emerging tourism potential. Notably, Sri Lanka’s ocean territory is nearly seven times larger than its landmass, highlighting the vast, untapped opportunities for marine-based tourism. The roadmap presents both short-term and long-term implementation strategies, aiming to develop sustainable marine tourism infrastructure, enhance visitor experiences, and ensure the protection and resilience of marine ecosystems in the years ahead.

The Roadmap itself was the result of collaboration among stakeholders covering coastal areas of Negombo, Kalpitiya, Mannar, Jaffna, Mullativu, Trincomalee and Galle and also the Steering committee members representing 18 key marine related public and private sector institutions including Presidential Secretariat, Ministry of Tourism and the SLTDA. This unified approach ensured that the document reflects the diverse perspectives of stakeholders directly involved in marine and coastal tourism development.

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