The groundwork for listing Sri Lanka’s state-owned enterprises (SOEs) on the Colombo Stock Exchange (CSE) has been completed, and it is now up to the government to take the next step, Securities and Exchange Commission (SEC) Chairman Senior Prof. Hareendra Dissabandara said recently.
Speaking at the Invest Sri Lanka Forum held in Singapore last week, Prof. Dissabandara emphasized that the infrastructure required for SOE listings is ready, including the establishment of the Catalyst Board, which has been specifically created for this purpose, Daily Financial Times (DailyFT) Newspaper reported.
“Targeting SOEs, we have put many measures in place. Our Catalyst Board is ready, and almost all the requirements are fulfilled. Now, the only thing left is for the government to be prepared and move forward with the listing,” he told international investors at the Forum, jointly organized by the SEC and the CSE.
He also revealed that the SEC has engaged in several discussions with policymakers, including a meeting with the Minister on the morning of the event.
According to him, past governments were reluctant to move ahead with SOE listings because of fears they would be equated with privatisation. However, he noted that the present administration has recognized the importance of raising funds through the capital market.
“Even the President, Anura Kumara Dissanayake, has openly stated that SOEs should be listed through a holding company. Considering our limited borrowing capacity, there is no alternative,” Prof. Dissabandara stressed.
He further explained that access to market-based financing is vital for restructuring and growing SOEs. “If we want to see real transformation, SOEs must raise funds through the capital market,” he said.
To highlight the potential, he cited the $1.4 billion Cinnamon Life mixed-use development by John Keells Holdings (JKH). “Cinnamon Life is one of the largest private investments in Sri Lanka, worth half the size of the IMF program. If the private sector can achieve this, so can the government. This is why SOEs must look at capital markets as a path to revival.”
Prof. Dissabandara also urged policymakers to reduce reliance on debt financing. “We must move away from the mindset of constant borrowing. The Sri Lankan capital market has immense potential. Cinnamon Life is a strong example; most of its $1.4 billion funding was raised through the local market,” he said.
