H.D.H Senewiratne
hsenewiratne@gmail.com
The Colombo Stock Exchange (CSE) is planning to set up a separate board to encourage small and medium sized (SME) companies to be listed in the market, which represents more than 80 percent of the national economy.
At present the local agriculture sector and SME sector representation in the CSE is very minimal.
To increase the CSE's contribution to the national GDP, it is the need of the hour to encourage such companies to get listed in the CSE Chairman Vajira Kulatilake told the Daily News Business.
He said special board will be created to encourage such companies to be listed in the CSE.
Because the stock market representation in agriculture sector especially paddy sector small scale agriculture sector and even apparel sector are not being listed in the CSE, Kulatilake said.
The CSE is expecting three to four new Initial Public Offerings this year. But if we have set up a new board for the SME sector and another for the commodity market to encourage more listings.
The main purpose of the new board for the SME sector is to encourage regional companies to be listed in the market, he said.
He said the CSE can be promoted among foreign investors if we have to have enough liquidity in the market. But at present the CSE is not developed enough to attract big time foreign investors into the market, Kulatilake said.
Kulatilake said CSE contribution to the GDP is 33 percent now with the encouraging number of SME sector listings they could double the CSE contribution towards the GDP.
“We could increase the liquidity ratio in the market to attract foreign investors into the market”, he said.
Top foreign investor Chairman VVS Lanka Holdings (Pvt) Ltd Henry Xia said the Sri Lankan stock market doest not have enough liquidity to promote top Chinese investors, because there are very rich Chinese investors willing to invest in the CSE.
The CSE is a company limited by guarantee, established under the Companies Act No. 17 of 1982 and is licensed by the Securities and Exchange Commission of Sri Lanka (SEC).
The CSE is a mutual exchange and has 15 full members and 13 Trading Members licensed to trade both equity and debt securities, while two members are licensed to trade in debt securities only. At present around 250 companies are listed with the market.
www.dailynews.lk
hsenewiratne@gmail.com
The Colombo Stock Exchange (CSE) is planning to set up a separate board to encourage small and medium sized (SME) companies to be listed in the market, which represents more than 80 percent of the national economy.
At present the local agriculture sector and SME sector representation in the CSE is very minimal.
To increase the CSE's contribution to the national GDP, it is the need of the hour to encourage such companies to get listed in the CSE Chairman Vajira Kulatilake told the Daily News Business.
He said special board will be created to encourage such companies to be listed in the CSE.
Because the stock market representation in agriculture sector especially paddy sector small scale agriculture sector and even apparel sector are not being listed in the CSE, Kulatilake said.
The CSE is expecting three to four new Initial Public Offerings this year. But if we have set up a new board for the SME sector and another for the commodity market to encourage more listings.
The main purpose of the new board for the SME sector is to encourage regional companies to be listed in the market, he said.
He said the CSE can be promoted among foreign investors if we have to have enough liquidity in the market. But at present the CSE is not developed enough to attract big time foreign investors into the market, Kulatilake said.
Kulatilake said CSE contribution to the GDP is 33 percent now with the encouraging number of SME sector listings they could double the CSE contribution towards the GDP.
“We could increase the liquidity ratio in the market to attract foreign investors into the market”, he said.
Top foreign investor Chairman VVS Lanka Holdings (Pvt) Ltd Henry Xia said the Sri Lankan stock market doest not have enough liquidity to promote top Chinese investors, because there are very rich Chinese investors willing to invest in the CSE.
The CSE is a company limited by guarantee, established under the Companies Act No. 17 of 1982 and is licensed by the Securities and Exchange Commission of Sri Lanka (SEC).
The CSE is a mutual exchange and has 15 full members and 13 Trading Members licensed to trade both equity and debt securities, while two members are licensed to trade in debt securities only. At present around 250 companies are listed with the market.
www.dailynews.lk
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