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Two recent issuers benefit from CSE’s expanded listing criteria

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(L-R): CSE CEO Rajeeva Bandaranaike and CRO Renuke Wijayawardhane

* A total of Rs. 4.7 billion raised

* Both IPOs oversubscribed multiple times

* CSE invites corporates to actively explore alternate paths that have been introduced

Taking into account the role played by capital markets in the growth of the corporate sector and the importance of offering multiple avenues through which companies aspiring for growth can access capital markets, the Colombo Stock Exchange (CSE) adopted progressive changes to the CSE’s listing framework for new listings, offering a wider choice of listing options for companies wanting to list shares on the Main and Diri Savi Boards.

An analysis of recent listings on the CSE indicates that these amendments in particular have paved the way for two companies to list on the CSE and access capital market-based funding valued at Rs. 4.7 billion. Both IPOs were oversubscribed on the opening day and by 16+ times collectively drawing considerable investor interest at the time. Interestingly, the listing framework prior to the amendments made by the CSE may not have attracted these two corporates – indicating that the amendments have been successful in making a stock market listing a possibility for a broader array of aspiring issuers.

These recent issuers representing two different industries have benefited from the CSE’s initiative in broad basing the profit-oriented eligibility requirement applicable to the Main Board. Prior to the amendments, the CSE Listing Rules required that all companies aiming to list on the Main Board demonstrate net profit after tax for three consecutive financial years. Three alternatives to this requirement were introduced by the CSE as part of the amendments.

The CSE’s Main Board listing criteria now accepts companies that can demonstrate an aggregate net profit after tax for three consecutive financial years, meaning that companies aiming to list on the exchange are no longer required to be profitable in each of the three financial years immediately preceding the date of the initial listing application.

Further, companies that cannot meet the profit-based criteria for the Main Board can demonstrate eligibility through revenue or positive operating cashflow (one of either), if the company’s market capitalization is valued at Rs. 5 billion or above at the point of listing. The revenue-based option would require the company to demonstrate an aggregate revenue of Rs. 3 billion for three financial years immediately preceding the date of the initial listing application. Alternatively, the positive operating cash flow option would require the company to demonstrate positive operating cash flows (after adjustment for working capital) for two consecutive financial years immediately preceding the date of the initial listing application.

Commenting on the development, Chief Regulatory Officer at the CSE Renuke Wijayawardhane stated “It is quite important that capital market regulation evolves to cater to the growing and dynamic needs of our stakeholders, and the amendments to CSE Listing Rules were put in place to broaden the rules to complement Sri Lanka’s rapidly developing commercial landscape comprising of multiple new business models and segments. We at the CSE are pleased to see that these new options are being actively utilized and explored by potential issuers.”

The amended Listing Rules also offer flexibility for companies aiming to list on the Diri Savi Board, where companies that cannot meet the Positive Net Assets requirements have a revenue-based alternative. If the company’s market capitalization is valued at Rs. 2 billion or above at the point of listing, demonstrating revenue of Rs. 350 million for the financial year immediately preceding the date of the initial listing application will be an acceptable alternative to the Positive Net Assets requirement.

CSE CEO Rajeeva Bandaranaike called on Sri Lankan corporates interested in listing to actively engage the exchange and the investment banking community to understand the wide-ranging choice of listing options available.

He stated “Corporates will most likely prioritize drawing sustainable capital inflows and achieving financial flexibility as they look to recover from the impact of COVID-19 and meet the demands of present macro-economic challenges. The capital market and in particular, a listing on the stock exchange, is a means through which this could be achieved. The CSE has taken progressive measures to facilitate the listing of more Sri Lankan corporates such as the expanded listing criteria, measures taken to streamline the CSE listing process and also offer new options of capital raising such as foreign currency denominated equity listings for local corporates. We strongly believe that the capital market offers considerable potential for Sri Lankan corporates to unlock value and we invite corporates to actively pursue these avenues.”



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Sri Lanka takes helm of Asia Tea Alliance, Colombo to host 2025 Summit

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From left: Dave Maurice, Director, Nucleus Foundation; Head of the ATA Secretariat, Nimal Udugampola, Chairman, TSHDA; incoming Chair, Asia Tea Alliance and Saman Rathnayake DGM (Extension) TSHDA

Sri Lanka is set to significantly elevate its regional standing in the global tea industry by assuming the Chairmanship of the Asia Tea Alliance (ATA) for the 2026–2027 term. This strategic milestone was announced on Nov. 17, at a press conference at the Tea Small Holdings Development Authority (TSHDA).

Nimal Udugampola, Chairman of the TSHDA, will take on the role of ATA Chair, marking the first time in the Alliance’s history that a leader from a smallholder-institution will hold the position. This move not only amplifies smallholder representation across Asia’s tea value chains but also positions Sri Lanka to help shape standards, policy dialogue, trade priorities, and market access regionally.

The announcement coincides with Colombo hosting the 6th ATA Annual Meeting and the Asia International Tea Summit 2025 on November 27, 2025, at Moonwalk by Citrus, Lotus Tower. The summit, which will be convened by Dr. Shatadru Chattopadhayay, Managing Director of Solidaridad Asia , will be held under the theme: “Tea Reimagined: Regenerative, Resilient and Carbon Free.”.

Minister of Plantations and Community Infrastructure, Samantha Vidyarathna, MP, will attend as the chief guest.

Under Sri Lanka’s stewardship, the ATA’s focus will centre on regenerative practices, climate resilience, fair value, and stronger market linkages. This is expected to give Sri Lankan producers, both large and small, a more prominent voice on the global stage.

Dr. Shatadru Chattopadhayay, Convenor of the Asia Tea Alliance (Solidaridad Asia) said, “ATA’s mission is to turn collaboration into competitiveness – aligning producers, smallholders and companies around verified sustainability, market access and resilience. Sri Lanka’s leadership arrives at the right moment to advance decarbonised, regenerative tea and deliver fairer value across the supply chain.”.

The TSHDA’s assumption of the chairmanship highlights tea as a shared endeavor between smallholders and plantations, aligning institutions, private companies, exporters, and policymakers around a common agenda. Smallholder tea growers contribute substantially to national outputs and rural economies.

Incoming Chair, Nimal Udugampola said, “Smallholders and plantations are both central to the future of tea. As Chair, I will prioritise regenerative practices, stronger livelihoods and premium market access, underpinned by credible standards and partnerships. Together with ATA members, we will translate sustainability and decarbonisation into tangible gains for producers and consumers alike.”

The Asia International Tea Summit 2025 will feature a high-level technical session covering transition pathways to regenerative agriculture, building climate and market resilience, expanding market access for sustainable tea, and practical enablers of decarbonisation. The Nucleus Foundation, Colombo, will host the ATA Secretariat for 2026–2027.

The ATA’s mission to foster cooperation between major tea economies, including founding members India, China, Sri Lanka and Indonesia, creates an interesting dynamic for the world-renowned Ceylon Tea brand.

The country’s leadership comes as the Sri Lankan government sets an ambitious national tea production target of 400 million kilograms by 2030, with 300 million kilograms expected from the tea smallholders. Tea industry veterans view this 400 million kg goal as highly ambitious yet doable, provided it is backed by serious, collaborative dialogue and significant investment from all stakeholders.

In response to a media inquiry, Tea Small Holdings Development Authority officials noted that the recent budget proposal by President Anura Kumara Dissanayake to increase the minimum daily wage of estate workers from Rs. 1,350 to Rs. 1,550, with an additional Rs. 200 attendance incentive (effective January 2026), holds no bearing on the TSHDA, as their workers already receive higher earnings than their counterparts on company-run tea plantations.

By Sanath Nanayakkare

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‘Recognizing science, research and innovation vital for economic turnaround’

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Prof. Neelika Malavige Pic courtesy FOS Media

Sri Lanka’s economic turnaround will not be achieved through tighter budgets or debt restructuring alone—it will depend on whether the country can finally recognise science, research and innovation as serious engines of growth. That was the clear, uncompromising message from internationally respected scientist Professor Neelika Malavige, speaking at the recent IDEAnet Health Forum of the University of Colombo.

Malavige argued that Sri Lanka is missing its biggest economic opportunity by failing to treat innovation as a business asset. Nations such as Singapore and South Korea, she said, became global success stories not through natural resources, but by building systems that reward efficiency, research, and knowledge creation. “Their prosperity came from ideas,” she stressed. “We have the talent, but we continue to smother it under red tape.”

She pointed out that Sri Lanka and Singapore started the 1960s on near-equal footing. Today, Singapore’s GDP per capita is more than ten times higher. That gap, she warned, reflects decades of lost innovation capacity. Sri Lanka’s position at 93rd on the Global Innovation Index tells the same story—a country with potential but without the systems to convert ideas into economic output. For the private sector, she said, the realisation must hit hard: innovation is not a luxury. It is the most underdeveloped industry in Sri Lanka, and possibly the most profitable one if unlocked.

The biggest barrier, Malavige insisted, is not money but bureaucracy. She gave a striking example: research materials are taxed at 33 percent, then subjected to another 33 percent through intermediaries, before taking up to eight months to reach a laboratory. By then, only a fraction of the allocated funds actually turns into research. “In Oxford,” she said, “I received the same reagent in two days.” Such delays and inefficiencies, she emphasised, are not just academic frustrations—they translate into lost competitiveness, delayed product development, weaker investor confidence, and millions in missed opportunities.

Malavige believes Sri Lanka urgently needs to build a bridge between universities and industry if it wants to create new commercial sectors. She pointed to India’s transformation of its vaccine industry and to countries like the Netherlands and Senegal, which now export agricultural technologies and WHO-approved vaccines despite their modest size. Sri Lanka, she said, can produce diagnostics, medical technologies, and agritech solutions for regional markets—but only if the system stops obstructing those who try.

The ongoing brain drain, Malavige added, is not simply a social tragedy; it is an economic leak. Every researcher who leaves represents years of investment disappearing, along with the innovations and industry collaborations they would have generated.

Scientists, she said, are leaving because they cannot operate efficiently in a system crippled by delays, rigid procedures, and the absence of meaningful incentives. High-impact research, whether published internationally or locally, receives the same treatment. “That kills ambition, she said. “And ambition is the raw material of innovation.”

Health research, she noted, is not just about saving lives; it is an economic shield. During COVID-19, Sri Lanka used an antibody test developed with minimal resources, saving millions in testing costs. Such examples prove that homegrown innovation yields measurable financial returns. But she cautioned that if a future pandemic—what global experts refer to as “pathogen X”—hits Sri Lanka with systems this inefficient, the economic consequences would be devastating.

By Ifham Nizam

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Dialog powers Sri Lanka’s digital future with 5G at INFOTEL 2025

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Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, showcased the nation’s most advanced and fastest 5G-ready network at INFOTEL 2025, reaffirming its commitment to shaping Sri Lanka’s digital future through world-class technology, innovation, and next-generation connectivity that empowers smarter cities, richer experiences, and a more connected society.

INFOTEL 2025 was organised by the Federation of Information Technology Industry Sri Lanka (FITIS) and is recognised as the country’s largest and oldest ICT exhibition. Attracting key decision-makers from public and private sectors, policymakers, professionals, entrepreneurs, and educational institutions, the event served as a dynamic platform for new business opportunities and technological advancement. Dialog’s 5G Experience Zone was a key attraction, featuring cutting-edge demonstrations such as Smart City, VR Kayaking, AI Portraits, Gaming Zone, 5G Speed Testing, and Smart Home experiences. Each demonstration showcased how Dialog’s ultra-fast, low-latency, high-bandwidth 5G network transforms everyday life through innovation and connectivity.

The VR Kayaking experience immersed visitors in a lifelike adventure aboard a Dialog 5G-branded kayak, demonstrating 5G’s ultra-low latency that reduces lag and enhances responsiveness, redefining virtual tourism with realistic motion and visuals.

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