Business

Understanding the strategic value of listing on the Colombo Stock Exchange

Published

8 months ago

2025/06/11

Kanishka Munasinghe, Vice President of the Listing Division

Kanishka Munasinghe, Vice President of the Listing Division at the Colombo Stock Exchange (CSE), outlines the strategic value of listing on a stock exchange, detailing the role of the Listing Division, followed by the benefits for companies, the broader economic impact, and the essential considerations entities must assess before going public.

What is the Role of the Listing Division at the CSE?

The Listing Division of the Colombo Stock Exchange supports both potential and existing listed companies in raising debt and equity capital through a diverse range of products. The Division’s role includes the reviewing applications from prospective issuers and granting approval to those that meet the required criteria and comply with the applicable rules for listing on the CSE, whilst positioning the CSE as the most preferred platform for further capital raising by listed companies. The Listings Division also strives to grant approvals within the stipulated timelines, provided all documentation is submitted in compliance with the listing rules.

In reviewing the Initial Listing Applications of both potential and existing listed companies, the Listing division ensures that such companies have adhered to the applicable Rules of the CSE and the CSE Listing Framework, which maintain transparency and adequacy of disclosures made in offer documents (i.e. Prospectus, Introductory Document and Circular to Shareholders).

The CSE’s review process also includes an in-depth analysis of the potential issuer’s financial performance in the present operating history and a financial analysis conducted for a pre-defined future period. All listing applications are reviewed by a dedicated Listing Review Committee comprising several members of the CSE’s senior management, who are responsible for granting approval for listings.

Overall, the entire review process carried out by the CSE ensures that the potential issuer conducts the IPO, and the existing issuers carry out further issues of securities in line with the rules, regulations, and procedures of the CSE.

In addition to the above the Listing Division of the CSE also:

Advises listed companies, potential issuers, and investment banks on the listing of securities and the application of the CSE Listing Rules/Listing Framework.

Contributes to the formulation of policies and rules applicable to listed companies.

Supports the implementation of strategic initiatives which are of importance to listed companies and potential issuers.

Performs the related system entries to enable the listing of securities.

Could You Elaborate on the Key Advantages a Company Can Unlock by Accessing the Capital Market Through Listing on the Colombo Stock Exchange?

Listing allows companies to raise capital by issuing shares to the public through an Initial Public Offering (IPO) or further issue of shares, which encapsulate benefits not typically seen in traditional methods of funding such as borrowing. This helps companies in diversifying their funding avenues for various purposes.

The funds raised through IPOs can be used for purposes such as debt settlement, which in turn helps companies manage their gearing and debt exposure, and strengthens the balance sheet. The funds raised through a Stock Exchange can also be utilized for expansion and new business opportunities. Additionally, funds raised through an IPO can be used for any purpose without restrictions, provided the companies operate within the prevailing regulatory and legal parameters.

Listing typically requires companies to comply with corporate governance rules and regulations, which can improve transparency and accountability of a company. This, in turn, allows the company to attract strategic investors who may be looking to invest with a strong profile and sound governance practices.

Furthermore, listing provides companies with a greater opportunity for value creation and price discovery through secondary market trading. It also enhances corporate visibility and recognition, while improving the overall profile of the company in terms of business, systems, processes, and employment.

How Does Listing on a Stock Exchange Contribute to Broader Economic Development?

Listing allows companies to raise capital by offering shares to the public, which can be used for expansion, research and development, or new business opportunities. Such capital injection fuels economic growth by enabling companies to invest in infrastructure, technology, and job creation.

Listing attracts not only domestic investors but also foreign investors, allowing foreign funds to flow into the local market, where such inflows are pivotal for economic growth as it helps fuel local businesses.

Listing on a stock exchange requires companies to adhere to strict corporate governance and disclosure regulations, promoting transparency and accountability. This increases transparency and builds trust among investors and encourages long-term investment in the economy.

Listed companies and their new business ventures enable the creation of new job opportunities in various sectors, contributing to a larger and more skilled workforce. This helps address unemployment issues and leads to improved living standards for the population.

What Key Factors Should a Company Take into Account Before Listing?

Financial Stability of the Company: A company intending to list should review its financial statements to assess profitability, asset value, and debt levels with a view to meet the predefined listing criteria of the Stock Exchange. Such a review should primarily focus on consistent revenue growth, profitability, and asset valuation.

Market Conditions and Investor Sentiment: It is essential that a company thoroughly assesses market conditions to determine the right time to launch an IPO. In doing so, the company should have a clear understanding of investor sentiment, industry outlook, and other relevant factors.

IPO Pricing and Valuation: A company should determine a fair IPO price that reflects its true value and attracts investor interest. Various valuation techniques can be used to arrive at an appropriate price.

Existing Financial, Legal, or Governance Issues: Prior to listing, a company should carefully examine any prevailing / potential financial, legal, or governance issues that may adversely impact the success of the IPO or the sustainability of the business in a listed environment. This assessment will help the company achieve a smooth listing process.

Corporate Governance and Management: A strong corporate governance structure builds trust and transparency with investors. Before listing, a company should have a clear plan on how it intends to comply with the corporate governance practices prescribed by the Exchange.

Rules and Regulations of the Exchange: Before listing, a company must have a clear understanding of the rules, regulations and procedures it must comply at the time of listing, as well as those applicable on a continuous basis along with the applicable enforcement action. Such understanding will help companies reap the benefits of listing without any interruptions and limitations.

Shareholder Considerations: A company should analyze its existing ownership structure to understand who holds shares and their potential impact. It should also assess how shareholding may be diluted through an offer for sale or offer for subscription, while ensuring compliance with the applicable minimum public holding requirements.

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Business

“We Are Building a Stable, Transparent and Resilient Sri Lanka Ready for Sustainable Investment Partnerships” – PM

Published

56 mins ago

2026/02/15

Priyan

Prime Minister Dr. Harini Amarasuriya addressed members of the Chief Executives Organization (CEO) during a session held on Thursday [3 February 2026] at the Shangri-La Hotel, Colombo, as part of CEO’s Pearl of the Indian Ocean: Sri Lanka programme.

The Chief Executives Organization is a global network of business leaders representing diverse industries across more than 60 countries. The visiting delegation comprised leading entrepreneurs and executives exploring Sri Lanka’s economic prospects, investment climate, and development trajectory.

Addressing the gathering, the Prime Minister emphasized that Sri Lanka’s reform agenda is anchored in structural transformation, transparency, and inclusive growth.

“We are committed not only to ensuring equitable access to education, but equitable access to quality education. Our reforms are designed to create flexible pathways for young people beyond general education and to build a skilled and adaptable workforce for the future.”

She highlighted that the Government is undertaking a fundamental pedagogical shift towards a more student-focused, less examination-driven system as part of a broader national transformation.

Reflecting on Sri Lanka’s recent political transition, the Prime Minister stated:

“The people gave us a mandate to restore accountability, strengthen democratic governance, and ensure that opportunity is not determined by patronage or privilege, but by fairness and merit. Sri Lanka is stabilizing. We have recorded positive growth, restored confidence in key sectors, and are committed to sustaining this momentum. But our objective is not short-term recovery it is long-term resilience.”

Addressing governance reforms aimed at improving the investment climate, she said:

“We are aligning our legislative and regulatory frameworks with international standards to provide predictability, investor protection, and institutional transparency. Sustainable investment requires trust, and trust requires reform.”

Turning to the recent impact of Cyclone Ditwa, which affected all 25 districts of the country, the Prime Minister underscored the urgency of climate resilience.

“Climate change is not a distant threat. It is a lived reality for our people. We are rebuilding not simply to recover, but to build resilience, strengthen disaster mitigation systems, and protect vulnerable communities.”

Inviting CEO members to consider Sri Lanka as a strategic partner in the Indo-Pacific region, she highlighted opportunities in value-added mineral exports, logistics and shipping, agro-processing, renewable energy, pharmaceuticals, and innovation-driven sectors.

“We are not looking for speculative gains. We are seeking long-term partners who share our commitment to transparency, sustainability, and inclusive development.”

She further emphasized collaboration in education, research, vocational training, and innovation as essential pillars for sustained economic growth.

Concluding her address, the Prime Minister expressed appreciation to the Chief Executives Organization for selecting Sri Lanka as part of its 2026 programme and reaffirmed the Government’s readiness to engage constructively with responsible global investors.

The event was attended by the Governor of the Western Province, Hanif Yusoof, and other distinguished guests.

[Prime Minister’s Media Division]

Business

High Commissioner in Pakistan urges high level business visit to Colombo

Published

2 hours ago

2026/02/15

Thilina Walpola

High Commissioner Senevirathne and Dr. Munir at meeting

The High Commissioner of Sri Lanka to Pakistan, Rear Admiral Fred Senevirathne, met Dr. Zeelaf Munir, Chairperson of the Pakistan Business Council (PBC), in Karachi on Feb. 6 and urged a high level visit of Pakistani business people to Sri Lanka, a news release from the High Commission said.

Dr. Munir, who also serves as the Managing Director and Chief Executive Officer of English Biscuit Manufacturers (EBM), leads Pakistan’s premier business policy advocacy body, which plays a key role in promoting a conducive business environment, export growth, and industrial development.

The High Commissioner who was warmly received by Dr. Munir at her office briefed her on the current economic and political landscape in Sri Lanka, highlighting the country’s improving economic outlook, enhanced political stability, and a favourable environment for foreign investment, the release said.

He also outlined the policy priorities of the new Government, with particular emphasis on ongoing economic reforms, investment-friendly initiatives, and opportunities to further strengthen bilateral economic and trade cooperation between Sri Lanka and Pakistan, it said.

He invited Dr. Munir to consider leading a delegation of prominent business leaders and investors to Sri Lanka, with a view to engaging with Sri Lankan counterparts and exploring potential investment opportunities and avenues for collaboration across key sectors.

The meeting was facilitated by. Honorary Consul of Sri Lanka in Hyderabad, Mehmood Mandviwalla, who was also present. Minister and Head of Chancery of the Sri Lanka High Commission in Islamabad, Christy Ruban, and Consul General of Sri Lanka in Karachi, Sanjeewa Pattiwila also participated at the meeting.

Business

IRONMAN 70.3 Colombo Returns, Kicks Off #ActiveColombo City Transformation

Published

2 hours ago

2026/02/15

Thilina Walpola

All partners at the Ironman 70.3 Colombo Launch with Vraîe Cally Balthazaar, Mayor of Colombo at the event held last Wednesaday at Shangri-La.

Officials from the Western Provincial Council, Colombo Municipal Council, and event organisers marked the official launch of IRONMAN 70.3 Colombo – Presented by Port City Colombo today at Shangri-La Colombo, the Host Hotel, signalling the return of Sri Lanka’s premier endurance event and the start of the long-term #ActiveColombo initiative.

Scheduled from 19–22 February 2026, the world-class triathlon will anchor #ActiveColombo Week, combining international competition with a city-wide celebration of sport, health, and urban vitality. Highlights include the KAYA Colombo – Active Lifestyle & International Expo (19–21 Feb), the family-focused IRONKIDS Colombo (21 Feb), and the IRONMAN 70.3 Colombo triathlon (22 Feb), featuring swim, bike, and run events at Port City Colombo, the Official Venue Partner.

The event is set to welcome nearly 1,000 athletes from over 49 countries, many visiting Sri Lanka for the first time, bringing international media attention and significant economic impact across hospitality, aviation, retail, and transport. As part of the globally recognised IRONMAN® circuit, Colombo now joins iconic host cities such as Sydney, Nice, and Muscat, reinforcing its position as South Asia’s emerging endurance sports hub.

“IRONMAN 70.3 Colombo embodies the spirit of resilience and excellence,” said Rajan Thananayagam, Director of Serendib Multisport (Pvt) Ltd. “This event puts Sri Lanka on the world stage and showcases Colombo as a vibrant, welcoming destination for athletes and their families.”

The launch also introduced #ActiveColombo, a long-term initiative aimed at transforming Colombo into South Asia’s leading Active City. The programme focuses on activating everyday urban spaces through parks, waterfronts, beaches, clean streets, shaded corridors, and safe environments that encourage walking, cycling, yoga, and other outdoor activities.

“Through #ActiveColombo, we aim to inspire a more active generation while strengthening Colombo’s appeal as a globally competitive capital,” said Hanif Yusoof, Governor of the Western Province. Mayor Vraîe Cally Balthazaar added that the initiative symbolises inclusive growth, promoting healthier streets, greener corridors, and vibrant public spaces for residents and visitors alike.

With signature policies such as the “Every Active Street is a Shaded Street” Shade the Road initiative, Colombo aims to combine urban health, economic growth, and international sports tourism. Experts say cities that invest in active lifestyles see 10–20% reductions in long-term healthcare costs, safer streets, and higher visitor spending.

By linking IRONMAN 70.3 Colombo with #ActiveColombo, organisers hope to position the city as a healthier home for citizens, a premier destination for high-value tourists, and a credible host for global sporting and lifestyle events, cementing Colombo’s reputation as South Asia’s Active Capital.