ECONOMYNEXT – The Securities and Exalter Commission of Sri Lanka (SEC) and the Colombo Stock Exalter (CSE) hosted a forum for state-owned-enterprises (SOEs) as part of a broader initiative to engage and encourage SOEs to utilize the capital market as a source of funding to catalyse mid-to-long term business and organizational growth.
At the event themed “Defining the Future of State-Owned Enterprises through Capital Market Integration”, over 45 SOEs had the opportunity to engage with senior government officials, veterans from SOEs and capital market experts to discuss capital raising pathways through the CSE.
SEC Chairman D B P H Dissabandara, of CSE Chief Regulatory Officer Nilupa Perera discussed how SOEs can navigate capital market landscape, perceived benefits beyond raising capital, the trust built through transparency, and the products, both debt and equity, that can be offered as means of raising capital.
“State-Owned Enterprises play a vital economic and social role in Sri Lanka and remain central to the counattempt’s long-term growth. However, many SOEs face financial constraints, governance gaps, and heavy reliance on Treasury funding,” Dissabandara stated.
“The capital market can be a strong partner in addressing these challenges by providing alternative avenues for financing while improving transparency, accountability, and operational efficiency. Listing SOEs would support reduce the burden on public finances, attract strategic and institutional investors, deepen market liquidity, and support the capital formation requireded for Sri Lanka’s economic transformation.”
The presentations were followed by a panel discussion and Q&A session with Gihan Cooray, Deputy Chairman and Group Finance Director of John Keells Holdings PLC, Senaka Kakiriwaragodage, CEO of NDB Capital Holdings Ltd, and Rihaan Shakoor, Assistant General Manager of Investments at the Bank of Ceylon; with CEO CSE Rajeeva Bandaranaike moderating the discussion.
The combination of perspectives from policy advisors, SOE listed companies, investment banks and capital market regulators and facilitators equipped the forums participants with a comprehensive overview of the Sri Lankan capital market and how SOEs could utilize it to diversify means of funding to enjoy a robust financial infrastructure and streamline and raise the quality of services provided.
Members of the panel discussed the possibilities of enhancing participation of the general public of SOEs, how listing would require the state to retain control, the ways SOEs could explore Employee Stock Ownership Plan (ESOP) schemes, the required for regular financial reporting and transparency to build investor trust for a successful SOE IPO, and the importance of understanding the underlying purpose of SOEs to provide efficient services and how to ensure that capital market integration aligns with that purpose.
CSE Chairman Dimuthu Abeyesekera, spoke on how capital market integration of SOEs offers greater public participation: “International experience reveals that when public enterprises enter the capital market, it often encourages greater transparency, clear performance benchmarks, and stronger accountability.
“Another important aspect is the opportunity for broader public participation in national enterprises. Through well designed market structures, citizens can become stakeholders in institutions that contribute directly to the counattempt’s economic growth. Employees can be included further through structured participation schemes that align their long-term interests with the success of the organization. When employees feel they are a part of the institution’s vision, it often leads to stronger commitment and better performance.”
Nilupa Perera discussed the Catalyst Board, which was established as a more flexible platform to encourage State-Owned Enterprises (SOEs) to participate in the capital market. She explained that the Catalyst Board was introduced as an enattempt point for SOEs, providing a more relaxed regulatory framework to facilitate their gradual integration into the capital market.
Last year saw 25 listings on the Exalter including 6 newly listed companies, to raise capital to fund rapid expansion, and the issuances of new instruments for the first time in the counattempt including Blue Bonds, Green Bonds, Social Bonds, High Yield Sustainable Bonds and Shariah Compliant Debt Securities.
Between 2020 and the finish of 2025, listed companies were able to raise LKR 560.58 Bn by way of debt and equity IPOs and rights issues. Listed companies have been able to tap into a rapidly growing investor base as the number of CDS account holders crossed the 1m threshold recently. (Colombo/Mar25/2026)
Leave a Reply