Colombo Stock Exchange signs MoU with CHEC Colombo Port City
The Colombo Stock Exchange (CSE) of Sri Lanka has reportedly signed a memorandum of understanding (MoU) with CHEC Port City Colombo to enhance capital markets in the country by taking advantage of the Port City Colombo’s special emphasis on the Colombo International Financial Centre. The move is also aimed at establishing a regionally-recognised financial exchange within the country’s borders, according to local media reports.
The MoU was signed with the objective of working on a collective mission to establish an International Multi-Currency Exchange within the Port City Colombo, media reports further noted.
According to reports, the exchange will serve as a gateway for both regional and global investors, whilst also providing an ideal platform for Sri Lankan and overseas corporates to issue foreign currency bonds and equities as well as develop other financing and risk management instruments across asset classes.
CHEC Port City and the CSE will actively collaborate to identify and attract a global stock exchange to partner the Colombo Stock Exchange in establishing a modern world-class trading exchange, which will position Sri Lanka as a hub for capital raising in the South Asian and the ASEAN region, the Daily FT reported.
CSE Chairman Dumith Fernando has been quoted as saying, “The CSE is pleased to take the initiative with this first step of signing a MOU with the CHEC Port City Colombo to work towards the further development of the capital market in Sri Lanka. Through this initiative we are planning to partner an international stock exchange that will bring a new dimension to the capital market and cater to the requirements of the Port City as well as issuers and investors regionally.”
CHEC Port City Colombo Managing Director Jiang Houliang has reportedly said, “We are excited to work with CSE in establishing an international stock exchange in Port City. We strongly believe that with the right infrastructure and business friendly policies, we would succeed in positioning Port City Colombo as an attractive location for regional listings, which would be a gateway for companies around the world to access new investment opportunities.”
OSL take:
The Colombo Port City project is expected to take Sri Lanka to the next level of development with the formation of a special financial city. Sri Lanka is now an emerging business destination in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. The island is also figured prominently in China’s Belt and Road Initiative (BRI). All this has placed Sri Lanka in a prominent position as a fast growing economy. Foreign businesses/investors could therefore confidently explore business opportunities in Sri Lanka, especially in the Colombo Port City.
| Article Code : | VBS/AT/06072021/Z_1 |