News
The Stock Market identified as a willing and able source to fund digital transformation
The Federation of Information Technology Industry Sri Lanka (FITIS), the Colombo Stock Exchange (CSE) and the Information and Communication Technology Agency (ICTA) recently conducted a webinar titled “Financing Digital Transformation: Is Going Public the Next Step?”, focusing on how companies in the IT industry can now consider a stock exchange listing in view of the recent changes to CSE listing eligibility.
The discussion focused on the expansion of the eligibility criteria for an initial listing of shares on the Main Board and the Diri Savi Board which will now enable a wider spectrum of companies to qualify for a listing.
The webinar featured capital market and tech industry experts including Chairman of FITIS Abbas Kamrudeen, Director/legal Adviser of ICTA Jayantha Fernando, CSE CEO Rajeeva Bandaranaike, CSE Chief Regulatory Officer Renuke Wijayawardhane and Founder/CEO of Pickme Jiffry Zulfer.
Director/Legal Adviser of ICTA Jayantha Fernando said that global success stories have helped catalyze a shift among private-company leadership toward viewing public markets as a more welcoming place to raise capital.
The stock market engine should be recognized as a tool within this ecosystem which, if correctly used, could pave the way for not only companies to grow but for the economy at large to grow as well, he noted.
Sharing his thoughts at the webinar, the Chairman of FITIS Abbas Kamrudeen said, “When it comes to financing, there are many options companies can evaluate from bootstrapping, Angel investors, debt capital, Venture Capital to private equity. But my belief is that for those companies that have matured to some extent, there is no better option to financing than going public. The reason being, it not only gives you flexibility and speed in future rounds of financing, but it will also allow you to understand the true value of your organization.”
The CEO of CSE Rajeeva Bandaranaike shared the perspective on the rationale for the CSE to revamp its listing requirements to cater to an ever-evolving business landscape in Sri Lanka consisting of modern and dynamic business models, which are particularly seen in the technology space.
He outlined that these new changes are now well placed to attract a wave of tech companies to the local stock market.
The Chief Regulatory Officer of CSE Renuke Wijayawardhane, highlighting these new avenues for companies stated, “Companies that ideally could not look at a listing on the main board as a result of the three consecutive year profit requirement now have other options. Companies with positive net assets for two financial years could list on the CSE with an aggregate net profit after tax for three years, an alternate which does not require companies to be profitable for three consecutive years.”
He added: “To broaden the entry routes, we have also introduced revenue and cashflow options in addition to the two profit-based routes. Companies could now demonstrate either an aggregate revenue of Rs. 3 billion for three financial years or positive operating cashflow after adjusting for working capital for two consecutive years. The revenue and cashflow route could be explored by companies capable of demonstrating a market capitalization of Rs. 5 Billion or more at the point of listing.”
Companies have also been given the opportunity of listing on the Diri Savi Board by demonstrating a revenue of Rs. 350 million for the financial year immediately preceding the date of the initial listing application and a market capitalization of Rs. 2 billion at the point of listing”, he added.
Speaking from an Investment Bank’s perspective, Head – Corporate Advisory at NDB Investment Bank, Nilendra Weerasinghe noted the progressive steps taken by the CSE to encourage tech companies to raise capital in the public markets.
“We need more private capital flows to support SMEs and startups to make it to the big league. In doing this, policies which incentivize private capital investments into angel and venture capital fund like structures could catalyze this space having a significant impact on the broader economy”, he further said.
Renowned tech entrepreneur and CEO of Pickme Jiffry Zulfer identified the stock market listing as an ideal exit option for investors and private equity firms investing in start-ups.
He went on to note that having the stock market listing as an option and a possible exit mechanism will help the growth of the start-up ecosystem in Sri Lanka by attracting a wider audience of investors who see the value of a market-based exit mechanism.
Companies are invited to connect with the CSE to discuss how they can now tap into public funding to spur on the company’s growth agenda. Details on eligibility of listing and the process could also be obtained through www.cse.lk or by sending an email to maalik@cse.lk
President Anura Kumara Dissanayake has directed rice traders to sell Nadu rice to consumers at a wholesale price of Rs. 225 per kilo and a retail price of Rs. 230 per kilo.
The President also instructed the officials of the Consumer Affairs Authority to closely monitor the situation over the next ten days and strictly enforce the law against rice mill owners who fail to comply with the fixed prices.
President Dissanayake made these remarks during a meeting with officials from the Ministry of Trade, Commerce, Food Security and Cooperative Development, along with rice traders, at the Presidential Secretariat on Saturday (07).
The President highlighted that the largest investments in the country are allocated to the Ministry of Highways, followed by the Irrigation and Agriculture sectors, with substantial subsidies provided to farmers.
The President further pointed out that low-interest bank loans have been provided to traders for the purchase of paddy and urged rice traders not to undermine the public’s right to access affordable rice.
As a result, the following rice prices will be implemented
• Wholesale price of a kilo of Nadu rice: Rs. 225, Retail price: Rs. 230
• Wholesale price of a kilo of white rice: Rs. 215, Retail price: Rs. 220
• Retail price of a kilo of imported Nadu rice: Rs. 220
• Wholesale price of a kilo of Samba rice: Rs. 235, Retail price: Rs. 240
• Wholesale price of a kilo of Keeri Samba: Rs. 255, Retail price: Rs. 260
The President also strongly criticized rice mill owners for frequently changing rice prices on a daily basis and instructed the Consumer Affairs Authority to monitor the daily rice production and distribution by mills.
Furthermore, President Dissanayake urged the rice traders to collaborate with the government in resolving the rice-related issues in an amicable manner.
The meeting was attended by Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development A. Wimalenthirajah, Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation D.P. Wickramasinghe, Director General of the Department of Development Finance Malarmathy Gangatharan, Acting Director General of the Department of Agriculture Dr. S.K. Wasala, Chairman of the Consumer Affairs Authority Hemantha Samarakoon, Chairman of the Paddy Marketing Board A.M.U. Pinnalanda, Director of the Hector Kobbekaduwa Agricultural Research and Training Institute A.L. Chandika, among other officials.
ECONOMYNEXT –The Election Commission (EC) has warned all candidates who have failed to submit their election campaign income and expenditure after contested in the November 14 parliament polls.
The Election Commission has set a deadline to submit the income and expenditure reports for 12 midnight on Friday, December 06, 2024.
R M A L Ratnayake, the Chairman of the EC said only few have submitted their reports so far.
“It is not only for those who have elected to the parliament, but those all who contested the election. They all should file their expenditure reports, Ratnayake told in a video clip circulated by the EC.
“I specially urge all candidates to fulfil this obligation without facing any legal actions.”
“In the event of a legal action, those candidates who face legal action are sometimes likely to lose their opportunity of contesting in local government or provincial council polls.”
Out of the total 8,361 candidates, around 24 percent or 1,985 have submitted their reports to the Election Commission as at 3 pm on Tuesday (03), the Commission said in a statement.
Out of a total 690 political parties and independent groups, only 15.4 percent (106) and out of 527 named national list members, only 10.8 percent (57) have so far submitted their reports, the EC said.
The Regulation of Election Expenditure Act is effective for the first time in Sri Lanka for a Parliament poll.
By Aruna Bogahawatte
The SLFP is facing a serious internal crisis as multiple factions within the party vie for control over the symbol to contest the upcoming local government elections, sources reveal.
One faction, led by Nimal Siripala de Silva, supported the National Democratic Front during the presidential elections and contested under the gas cylinder symbol. Some members from this group also ran in the general elections under the same symbol, securing a single seat in Parliament. This faction, supported by key figures such as Mahinda Amaraweera, Duminda Dissanayake, and several former MPs, believes the party should contest the local government elections under the traditional SLFP symbol, the ‘Hand.’
On the other side, a faction led by SLFP Treasurer Lasantha Alagiyawanna and Anura Priyadarshana Yapa is pushing to contest under the People’s Alliance symbol, the ‘Chair.’ They point to the success of this symbol in the recent Elpitiya Pradeshiya Sabha elections, where they secured two seats.
Amid this turmoil, SJB MP Dayasiri Jayasekera has offered to take on the role of SLFP Chairman if all factions can unite and set aside their differences for the sake of a stronger showing in the elections. Jayasekera said that he had discussed the same with Alagiyawanna and Dissanayake.
“The SLFP is now almost flattened to the ground, but I still believe it could be a formidable force in the next election if its leaders come together without delay,” Jayasekera said.
Fairly heavy showers are likely at some places in Western, and Sabaragamuwa provinces and in Galle, and Matara districts during the evening or night
Nadu Rice Prices Set: wholesale Rs. 225, retail Rs. 230
EC warns of legal action against candidates not compiling expense report
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